COST MANAGEMENT. FIN124 Cost Management Compulsory Undergraduate Fourth Fall

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1 COST MANAGEMENT Course code Course title Type of course Cycle of study Year of study Semester ECTS Coordinating lecturer Studies form Prerequisites Language of instruction FIN14 Cost Management Compulsory Undergraduate Fourth Fall 6; 4 hours of theory, 4 hours of practice, 11 hours of self- study, hours of consultations John R. Twombly Full-time Principles of Business, Economics and Management, Introduction to Finance English Course description Cost Management introduces students to the uses of information within a business enterprise for decisionmaking purposes. The course begins with an introduction to financial reporting, financial terminology, and the three major financial statements. After this brief introduction, the course turns its attention to the various uses of information within a business: product costing; short-term and long-term decision-making; budgeting; control of operations; and. The major topical areas that we explore are cost-volume-profit relationships, relevant costs, flexible budgets and standard costs. Course aim The objective of the course is to provide a broad-based, terminology, tools, and. The focus of Cost Management is on internal uses of cost information. The successful student will be able to discern the type of information that is needed in order to make specific decisions. He/she will be able to distinguish between costs, or revenues, that are relevant, or irrelevant, with respect to a specific decision. INTENDED LEARNING STUDY SUBJECT LEARNING STUDY METHODS ASSESSMENT OF LEARNING LO9: Will be able to analyze a company or an organization as an integral unit, which strives for certain goals in a market or social environment by effectively distributing their finite resources among objects and business activities and obtains synergies from coordinated function planning, organization and management. terminology, tools, and. Analyse and provide 3. Apply associated ination 1

2 decision making, control and 5.Tolerate ambiguity in managerial LO11: Will be able to conduct general supervision of internal and external business resources, maintenance of inventory and schedules of suppliers. terminology, tools, and. Analyse and provide 3. Apply associated ination decision making, control and 5.Tolerate ambiguity in managerial LO14: Will have developed the insights and skills, necessary to analyse and structure business financial information, to make financial forecasts and apply valuation models, supporting value-adding business decisions. terminology, tools, and. Analyse and provide 3. Apply associated ination decision making, control and

3 5.Tolerate ambiguity in managerial Quality assurance issues Current structure of the course reflects regular student feedback that is highly appreciated and collected both formally (after completing the course) and informally (during the course). The variety of learning methods used in the course assumes regular check-ups including student presentations during workshops, as well as the final group project evaluation allowing for student guidance regarding the individual learning progress. Cheating prevention Teaching and testing methods of the course favour learning and creativity as opposed to cheating. The university regulations on academic ethics are fully applied in the course. Course content Nr. Topic Contact hours Lecture Workshop Readings 1 Introduction. Introduction to Financial Accounting. Concepts, Techniques, and Conventions 3 Understanding Corporate Annual Reports 4 Introduction to Managerial Accounting 5 Cost Behavior and C-V-P Analysis 6 Measurement of Cost Behavior Midterm exam 7 Cost Management Systems and Activity Based Costing (ABC) 8 Relevant Information: Marketing Decisions. 3

4 Nr. Topic Contact hours Lecture Workshop Readings 9 Relevant Information: Production Decisions. 10 The Master Budget. 11 Flexible Budgets. 1 Variance Analysis (Must Reschedule) Consultation Final exam Individual work and assessment Type of assignment Topics Total hours Evaluation, % Assignments Midterm exam Written exam Total: Assignments Students work in small groups (4-5 people) to prepare an analysis of a listed topic. Details on the coursework will be provided during the first week. Assignments must comply with ISM requirements. Assignments counts towards 30% of the final grade. Required reading: Students are expected to have previewed the relevant reading(s) prior to each lecture. 1. Horngren, C., Wynder, M., Maguire, W., Tan, R., Datar, S., Foster, G., Rajan, M. and Ittner, C. (011) Cost Accounting. A Managerial Emphasis, Revised 1st Australian Edition, Pearson Education. Additional literature There are other texts for an alternative coverage of the material. 1. Hilton, R. W., Maher, M. W. and Selto, F. H. (008) Cost Management. Strategies for Management Decisions, 4th Edition, McGraw-Hill. 4

5 . Langfield-Smith, K., Thorne, H., and Hilton, R.W. (009) Management Accounting: Information for Managing and Creating Value, 5th Edition, North Ryde: McGraw-Hill Irwin. 3. Hansen, D.R. and Mowen, M.M. (006) Cost Management: Accounting and Control, 5th edition, South-Western College Publishing. 4. Garrison, R.H., Noreen, E.W. and Brewer, P. C. (006) Managerial Accounting, 11th edition, McGraw-Hill/ Irwin. 5