Management Accounting

Financial Accounting

To promote a deep understanding of cost calculations, the preparation of income statements, and budgeting, we will use a combination of practical exercises and group discussions, as well as critical analyses conducted by the students. This dynamic, collaborative, and interactive approach falls under problem-based learning.To master the theoretical content, we will use the flipped Classroom method, along with the expository methed when necessáry.

OBJECTIVES:

A. Understand the position of Cost Accounting within the broader discipline of Management Accounting;

B. Know the basic concepts of Management Accounting;

C. Understand the various ways to classify different types of costs;

D. Gain detailed knowledge of the components that constitute the total cost of products;

E. Learn to allocate indirect costs using the Cost Centers method;

F. Understand and use the Activity-Based Costing (ABC) system;

G. Identify different manufacturing regimes through concrete situations;

H. Acquire detailed knowledge of inventory costing systems;

I. Recognize the relationships between Cost, Volume, and Profit;

J. Understand the use of standard costs and the process of planning and budgeting.

SKILLS:

By the end of the course unit, students should be able to:

1. Determine the cost components of goods.
2. Record the cost components of production at all stages of manufacturing in a processing unit or a service-providing company.
3. Analyze the cost components of goods and production costs.
4. Prepare the Income Statement by Functions.
5. Prepare operational and cash budgets based on standard costs.

I – MANAGEMENT ACCOUNTING

 1.1 Scope and objectives of Management Accounting

 1.2 Income Statement: by Nature and by Functions

 1.3 Systems of Articulation between Financial Accounting and Management Accounting

 II – FUNDAMENTAL CONCEPTS OF MANAGEMENT ACCOUNTING

 2.1 Costs/expenses, expenditures and payments versus Revenues/Income, receipts and earnings

 2.2 Cost Objects, Production Cost, Comprehensive Cost and Economic-Technical Cost

 2.3 Product Costs and Period Expenses

 2.4 Classification of costs/expenses and revenues/income: Control and Decision Making

 II – COMPONENTS OF PRODUCTION COST

 3.1 Materials

 3.2 Labor

 3.3 General (indirect) production expenses

 3.4 Costs of finished production and work in progress

 3.5 Extra-production expenses

 IV – INVENTORY COSTING SYSTEMS

 4.1 Alternative Costing Systems

 4.2 Full Absorption Costing

 4.3 Rational Costing

 4.4 Variable Costing

 4.5 Costing alternatives and effects on the result

 V – COST CENTER BASED COSTING

 5.1 Functional division of costs

 5.2 Cost centers: Main and Auxiliary Centers

 5.3 Primary and secondary allocation of costs to Centers: Reciprocal services

 5.4 Cost Determination Maps

 VI – ACTIVITY-BASED COSTING (ABC)

 6.1 ABC and Cost Center based costing

 6.2 Activities and cost drivers

 6.3 Cost Determination Maps

 VII – DETERMINATION OF PRODUCTION COST AND MANUFACTURING REGIMES

 7.1 Manufacturing regimes

 7.2 Direct Method (job-order costing or production order costing)

 7.3 Indirect Method (process costing)

 7.4 Mixed Method

 VIII – JOINT PRODUCTION

 8.1 Reasons for allocating joint costs

 8.2 Types of joint products: coproducts, byproducts and waste

 8.3 Criteria for allocating joint costs to coproducts

 8.4 Criteria for allocating joint costs to byproducts and waste

 IX – COST-VOLUME-PROFIT (CVP) RELATIONSHIPS

 9.1 Relationships between costs and volume

 9.2 Cost behavior

 9.3 Contribution model

 9.4 CVP analysis in Variable Costing

 9.5 The concept of sales mix

 9.6 Assumptions of CVP Analysis

 X – STANDARD COSTS

 10.1 Concept and use of Standard Costs

 10.2 Concept and use of Operational Budgets

 10.3 Concept and use of Cash Budgets

The knowledge assessment can be carried out alternatively in the form of:

 1 Periodic evaluation; or

2  Final evaluation.

1. Periodic Evaluation (PE)

1 Periodic Evaluation (PE) comprises two tests and one assignment:

   1st Test (T1) - 45%

   2nd Test (T2) - 40%

   3rd Assignment (A) - 15%

 For the assignment, students will be challenged to individually create summaries based on various activities related to the theoretical content of chapters 3 to 9. The activities can include:

     Reading texts and articles

    Watching educational videos

    Visiting companies for practical observation

   All summaries, regardless of the activity, will have the same point value. These summaries must be submitted during class time using the Nónio system.

 Final Grade = 45% T1 + 40% T2 + 15% A

 If the final grade obtained is higher than 17 points, this grade may have to be defended through an oral exam, which could result in a final grade between 17 and the previously obtained grade.

 Notes:

 There are no minimum attendance requirements for classes. However, student participation in the sessions for the synthesis of the chapters is essential. If the student does not participate or is not present at any of the evaluation moments, a score of zero will be assigned for that component.

2 Final Evaluation

In this alternative, knowledge assessment will be conducted through a final written exam with a maximum score of 20 points. In the final exam, the student is considered approved if they obtain a score equal to or greater than 10 points. If the final grade obtained in the Final Evaluation is higher than 17 points, this grade may have to be defended through an oral exam, which could result in a final grade between 17 and the previously obtained grade.

NAO