Costs and Management Accounting

Base Knowledge

Management Accounting

Teaching Methodologies

The preferred teaching method will be the active method, based and adapted on Team Based Learning (TBL).

This methodology is intended to promote individual learning and cooperation between students and will follow three stages:

1st students analyze theoretical contents individually;

2nd the teacher exposes and clarifies the same contents;

3rd students demonstrate the acquisition of knowledge by answering questions or solving practical cases in groups.

Learning Results

Goals:

Provide knowledge and understanding of the process of forming costs and results in the company and the accounting procedures for their determination, analysis and use in valuing stocks, providing information for planning and control as well as decision making.

 

Skills to develop:

After completing the UC, the student must obtain the following general skills:

• Ability to analyze, synthesize and make decisions;

• Critical and self-critical capacity;

• Ability to understand theory and apply it to practice;

• Skills for working in groups.

And the following technical skills:

• Understand and use accounting systems for calculating costs to value inventories, calculating costs and margins for planning and management control and for decision making;

• Translate these technical skills to the design and construction of information systems.

Program

CHAPTER I – INTRODUCTION

1.1.       Purpose and objectives of Management Accounting;

1.2.       Demonstration of results: by nature and functions;

1.3.       Articulation Systems between Financial Accounting and Management Accounting.

 

CHAPTER II – FUNDAMENTAL CONCEPTS OF MANAGEMENT ACCOUNTING;

2.1. Monistic systems and dualistic systems

2.1. Structure and Code of Class 9 Accounts

 

CHAPTER III – COMPONENTS OF PRODUCTION COST;

3.1. Measurement of raw materials,

3.2. Direct labor

3.3. Indirect production expenses

 

CHAPTER IV – INVENTORY COSTING SYSTEMS;

4.1. Measurement in inventories

4.2. Measurement of products or services

4.3. Cost of Inventories consumed

 

CHAPTER V – COSTING BASED ON COST CENTERS;

5.1. Criteria for dividing the entity into cost center

5.2. How the cost center method works

 

CHAPTER VI – ACTIVITY-BASED COSTING (ABC);

6.1. Guiding principles

6.2. Basic concepts

6.3. Implementation and use of the ABC method.

 

CHAPTER VII – DETERMINATION OF PRODUCTION COST AND MANUFACTURING SCHEMES;

7.1- Manufacturing regime

4.2. Direct Method

4.3. Indirect Method

 

CHAPTER VIII – JOINT PRODUCTION;

8.1. The sharing of joint costs,

8.2. Types of products: co-products, by-products and waste

8.3. Criteria for sharing joint costs between co-products, by-products and waste.

8.4. Defective production.

 

CHAPTER IX – COST-VOLUME-RESULT RELATIONSHIPS (CVR)

9.1. The contribution model

9.2. Fundamentals of Cost-Volume-Result Analysis (CVR)

9.3. CVR Analysis in Variable Costing

9.4. The concept of sales mix

9.5. CVR Analysis Assumptions

 

CHAPTER X – STANDARD COSTS;

10.1. Actual Costing

10.2.  Normal Costing

10.3. Standard Costing

10.3.1. Concept, typology and objectives of standard costs

10.3.2. Standard cost deviations

10.3.3. Advantages and usefulness of standard costs

 

CHAPTER XI – PLANNING AND BUDGETS

11.1 The functions of Budget Management

11.2. The process of preparing budgets.

Curricular Unit Teachers

Ana Filipa Marques Roque

Internship(s)

NAO

Bibliography

Main bibliography:

  • Saraiva, A., Rodrigues, A., Coimbra, C., Fantasia, M. e Nunes, R., (2018), Contabilidade de Gestão – Métodos de Custeio e Valorização de Inventários, 1ª edição, Editora Almedina, Coimbra.
  • Saraiva, A., Rodrigues, A., Coimbra, C., Fantasia, M. Correia, E e Nunes, R., (2022), Contabilidade de Gestão – Métodos de Custeio e Valorização de Inventários, – Exercicios -2ª edição, Editora Almedina, Coimbra.
  • Franco, Victor et al. (2006). Contabilidade de Gestão – Volume II, Orçamento Anual e Instrumentos de Avaliação do Desempenho Organizacional,1ª edição, Lisboa: Editora Publisher Team.

Complementary bibliography:

  • Drury, Colin: Management Accounting for Business (2021), 11th edition. South-Western Cengage Learning ;
  • Burns, John et al. (2013), Management Accounting, London: McGraw-Hil.
  • Caiado, António Pires (2020). Contabilidade Analítica e de Gestão, 9ª Ed. Áreas Editora.
  • Charles T. Horngren, Srikant M. Datar, Madhav V.Rajan (2017): Cost accounting a Managerial Emphsis15/E. Prentice Hall, 16th edition
  • Drury Colin: Management Accounting for Business.(2019).South-Western, Cengage Learning, 2019, 7th edition or 6th , 5th edition
  • Ferreira, Domingos et al. (2019). Contabilidade de Gestão – Estratégia de custos e dos resultados, 2ª ed., Rei dos Livros.
  • Garrison, Ray e Noreen, Eric (2013). Contabilidade Gerencial, 14ª Edição, Rio de Janeiro: LTC Editora.
  • Hansen & Mowen (2000). Management Accounting, 5th ed., South-Western College Publishing.
  • Horngren, Charles et al. (2012). Cost Accounting: A Managerial Emphasis, 14ª Ed., Nova Jersey: Prentice Hall International Editions, Upper Saddle River.