Management Accounting II

Students are expected to have prior knowledge of Financial Accounting, Management Accounting I, basic mathematical skills and the use of Microsoft Excel, enabling them to understand the fundamental concepts of costing, cost analysis, budgeting and managerial decision-making.

The teaching methodology is based on a student-centred and predominantly active learning approach, combining theoretical lectures with problem-solving activities and practical case studies. Theoretical presentations will be used whenever necessary to introduce and contextualise the fundamental concepts of the course unit.

Students are encouraged to undertake prior reading of the course topics in order to facilitate class participation and promote autonomous and reflective learning.

Following the introduction of the theoretical concepts, practical exercises and case studies will be developed to enable their application in different organisational contexts. Whenever appropriate, the lecturer will provide guided examples, followed by the individual and group-based resolution of additional exercises, fostering discussion, the exchange of ideas, and the development of critical thinking.

The teaching methodology emphasises problem-based learning, active student participation and collaborative learning, with the aim of developing the technical, analytical and decision-making skills required in the field of management accounting

Learning Objectives

The course unit aims to:

1. Consolidate students’ knowledge of the main methods of cost determination, cost analysis and cost control.
2. Develop students’ understanding of cost accounting systems based on cost centres and activities, as well as their application in organisational management.
3. Promote an understanding of the use of management accounting information to support short-term managerial decision-making.
4. Develop students’ knowledge of standard costing, budgeting, budget preparation and budgetary control.

Learning Outcomes

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

1. Apply costing methods and cost analysis techniques in different organisational contexts.
2. Use relevant management accounting information to support short-term managerial decision-making.
3. Prepare operating and financial budgets, as well as projected financial statements.
4. Analyse variances and critically interpret information produced by management accounting systems, proposing appropriate corrective actions where necessary.

1 – COSTING BASED ON COST CENTERS
1.1 – Main and auxiliary cost centers
1.2 – Allocation of indirect costs
2 – 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
3 – 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
4 – STANDARD COSTS
4.1 – Types of pre-determined costs
4.2 – Standard costs of products/services
5 – BUDGETING
5.1 – Management functions and budget management
5.2 – Types of budgets
5.3 – Process of preparing the master budget
5.4 – Preparation of operational and financial budgets
5.5 – Preparation of the projected Balance Sheet an

The course unit is assessed through either the mixed assessment scheme or the final assessment scheme.

1. Mixed Assessment

The mixed assessment scheme consists of a group practical assignment (40% of the final grade - 8 points) and an individual written test (60% of the final grade - 12 points), to be held on the date established in the examination timetable for the normal examination period.

The grade obtained in the practical assignment is valid only for approval in the normal examination period of the 2026/2027 academic year and will not be considered in subsequent examination periods or for the purpose of grade improvement.

The practical assignment will be developed throughout the semester in several stages corresponding to the main course topics. At each stage, the groups will present and discuss the work carried out during class. Participation in the face-to-face activities associated with the practical assignment is a requirement of the continuous assessment component.

Only one duly justified absence from the scheduled face-to-face activities is permitted. In such cases, a grade of zero will be awarded for the assessment component corresponding to the activity not completed.

The final grade under the mixed assessment scheme corresponds to the weighted average of the grades obtained in the practical assignment (continuous assessment component) and the written test. A minimum final grade of 9.5 points (out of 20) is required to pass the course unit.

2. Final Assessment (Examination)

Students may opt for assessment exclusively through the final examination. Students choosing this assessment scheme will be assessed solely by means of a written examination.

NAO