Management Accounting for Agricultural Business

This curricular unit requires solid knowledge of Financial Accounting since management accounting is based on elements of financial accounting, namely costs and income.

Teaching method for the development of skills using computerized didactic material and other active teaching techniques that will be sought to be incorporated into the classroom, where the use of e-learning appears as the virtual learning method and students will interact not only with the teacher, but also with each other.

Goals

Management accounting does not have its own regulations applicable to the private sector, which allows each company to use the instruments that best suit its objectives and needs, in terms of information to be provided. However, Management Accounting is a recurrent support tool for managers and business decision-makers, which makes it possible to obtain useful information for valuation, control, planning and decision making. Thus, the objective of this curricular unit is to make known the importance of Management Accounting in obtaining adequate information in accordance with the established objectives, which will allow preparing for the best operational and strategic decisions in agricultural companies.

Skills to develop

After studying this curricular unit, students should distinguish: Direct and Indirect Expenses; Embeddable and Non-Incorporable Expenses; Fixed and Variable Expenses; Subactivity Expenses; Administrative Expenses and Total Costs.

After these concepts have been apprehended, they should understand the allocation of asset costs, through the various costing systems, recognize and apportion indirect costs by the respective cost objects, according to various criteria for allocation and allocation of indirect costs.

1. Management accounting as a management tool
1.1 Historical evolution of management accounting
1.2 Objectives of the Information Produced
1.3 Differences between Financial Accounting and Management Accounting

2. Costs and Expenses
2.1 Classification of expenses
2.2 Industrial cost components and cost stages
2.3 Product costs and period costs

3. Cost/Volume/Profit Analysis
3.1. CVR analysis
3.2 Calculation of results
3.3 Contribution Margin
3.4 Critical Sales Point
3.5 Critical Point in Multi-Product
3.6 Safety Margin
3.7 Marginal Profit

4. Costing Systems
4.1 Total Costing System
4.2 Variable Costing System
4.3 Direct Costing System
4.4 Rational Costing System
4.5 Standard Costing

5. Imputation and Allocation of Indirect Costs – Criteria
5.1 Traditional systems
5.2 Homogeneous Sections Method
5.3 Activity-Based Costing (ABC) System

6. Production regimes
6.1 Disjoint Production
6.2 Joint Production
6.3 Defective Production

7. The Time-Driven Activity-Based Costing System
7.1 Activity Cost Drivers and the Origin of Time Driven Activity Based Costing
7.2 From ABC to Time Driven Activity Based Costing
7.3 Advantages and Disadvantages of Time Driven Activity Based Costing
7.4 The Time driven-ABC methodology

With regard to assessment, this falls within the periodic assessment typology, comprising the preparation of 1 theoretical essay to be presented by the end of the academic period and the completion of a knowledge assessment test during the academic period.

Thus, the test represents 60% of the final assessment and the work component represents 40% and involves carrying out 1 practical exercise to be presented in class.

 The components of the work will be a theoretical essay and respective presentation in class with the following distribution:

      - 20% of the work grade will be for the presentation and is attributed to each individual element;

      - 80% of the grade for the written work will be attributed equally to each element.

 The work does not contribute to the final exam grade.

The Final Assessment will be in accordance with the examination periods laid down in the academic calendar and will be carried out by means of a written test.

NAO