Management Accounting II

CB1. Financial Accounting I and II
CB1. Management Accounting I

The teaching methodology favours active, student-centred methods, inspired by the Team-Based Learning (TBL) model:

TM1. Prior self-study: individual reading of the programme’s topics before each class, to become familiar with the content and identify questions.
TM2. Theoretical and expository classes: presentation of fundamental concepts, when necessary to introduce the subject matter.
TM3. Teacher-led worked examples: initial application of concepts and techniques to practical cases, led by the teacher.
TM4. Group work: solving new practical cases in groups, consolidating knowledge and developing analytical and problem-solving skills.

Learning Objectives (LO):

LO1. Understand and apply the Cost Centers method, including the distinction between main and auxiliary centers, and the allocation of indirect costs.
LO2. Understand and use the Activity-Based Costing (ABC) system, analyzing Activity-Based Management (ABM) and the differences compared to traditional costing methods.
LO3. Analyze relevant costs for frequent business decisions, such as make-or-buy, product selection to optimize contribution margin, closure of production lines, elimination of products, or evaluation of short-term investments.
LO4. Recognize the relationships between Cost, Volume, and Profit (CVP) and apply the model in short-term planning and analysis.
LO5. Introduce the concepts, terminology, and applications of standard costs, including their use in budgets, and calculate and analyze variances.

Competences to be Developed (CD):

CD1. Apply the cost centers method to allocate indirect costs (LO1).
CD2. Apply and compare the ABC/ABM system with traditional costing methods (LO2).
CD3. Analyze relevant costs to support short-term management decisions (LO3).
CD4. Apply the Cost-Volume-Profit model in short-term planning and analysis (LO4).
CD5. Prepare budgets and calculate and analyze variances based on standard costs (LO5).

P1 – COSTING BASED ON COST CENTERS
1.1 – Main and auxiliary cost centers
1.2 – Allocation of indirect costs

P2 – ACTIVITY-BASED COSTING (ABC)
2.1 – Activity-Based Management (ABM)
2.2 – ABC system and comparison with traditional costing methods
2.3 – Allocation of indirect costs

P3 – SHORT-TERM DECISION MAKING
3.1 – Relevant costs for decision making
3.2 – Study of the most common short-term decisions
3.3 – Cost-Volume-Profit (CVP) analysis

P4 – STANDARD COSTS
4.1 – Types of pre-determined costs
4.2 – Standard costs of products/services

P5 – BUDGET MANAGEMENT
5.1 Management functions and budget management
5.2 Types of budgets
5.3 The process of drawing up the master budget
5.4 Preparation of operational and financial budgets
5.5 Preparation of the projected balance sheet and profit and loss account (income statement)

P6 – BUDGET MONITORING
6.1 Objectives, advantages and limitations
6.2 Calculation and analysis of variances

In the Normal Season, the student may choose between two regimes:

A) CONTINUOUS ASSESSMENT (recommended regime):

AM1. Class Questions (25%): from the 2nd week of classes onwards, a weekly individual question is asked, for a total of 10 throughout the semester. Grade = arithmetic mean of the 10 questions.
AI directive: Level 0 (solved in class, without AI).

AM2. Excel Challenges (25%): completion of 4 practical challenges, individually or in groups (maximum of 3 students), with an in-class presentation. During the presentation, the teacher individually questions each group member to validate personal understanding of the concepts and calculations. Grade = arithmetic mean of the 4 challenges.
AI directive: Level 2 (AI allowed as a support tool to build formulas/models in Excel outside class, with a mandatory use declaration; the in-class presentation and Q&A always take place without AI support).

AM3. Tests (50%): 2 individual tests in class. Grade = arithmetic mean of the 2 tests, unless this mean is higher than the final grade obtained with the weighting of the other elements, in which case AM3's weight becomes 100%.
AI directive: Level 0 (no AI whatsoever).

Final Grade Formula (Continuous Assessment):
FG = 0.25 × AM1 + 0.25 × AM2 + 0.50 × AM3

B) ASSESSMENT BY EXAM - Normal Season:

AM4. Individual Written Exam (80%): written test held in the periods foreseen in the academic calendar, under the terms and conditions in force.
AI directive: Level 0 (no AI whatsoever).

AM5. Individual Oral Test (20%): brief oral presentation and defence of a representative exercise from the syllabus, with questions from the teacher. Mandatory element.
AI directive: Level 0 (no AI whatsoever).

Final Grade Formula (Assessment by Exam):
FG = 0.80 × AM4 + 0.20 × AM5

APPEAL PERIOD:

Students who did not pass in the Normal Season, or who wish to improve their grade, complete elements AM4 and AM5, with the same weightings (assessment exclusively by written exam is not allowed).

Grade Improvement:

Students who passed through Continuous Assessment and wish to improve their final grade may take the Assessment by Exam (AM4+AM5) in the Appeal Period; the grade obtained fully replaces the previous grade.

Attendance Regime and Working-Student Status:

There is no minimum attendance requirement for course completion; however, completing elements AM1, AM2 and AM3 presupposes the student's presence in the classes in which they take place. Working students are exempt from mandatory attendance and may choose: (i) Continuous Assessment, with AM1 and AM2 replaced by an equivalent set of questions/challenges submitted outside class hours; or (ii) Assessment by Exam (AM4+AM5).

General AI Usage Directives:

Level 0 - Use not permitted.
Level 1 - Permitted only for self-study, not for producing assessment elements.
Level 2 - Permitted as a support tool (building models/formulas, research, formatting), with a mandatory use declaration and critical record of how it was used.

Non-compliance with the AI usage directives constitutes an academic infringement, subject to the applicable disciplinary rules.

The student passes, under either regime, with a final grade, rounded to the nearest unit, equal to or greater than 10 points. All assessment elements are graded on a 0-20 scale.

NAO