Management Accounting

• P1. Knowledge of the SNC (Sistema de Normalização Contabilística) chart of accounts (Financial Accounting).
• P2. Knowledge of the financial statements recommended by the SNC (Sistema de Normalização Contabilística) (Financial Accounting).
• P3. Proficiency in the double-entry bookkeeping system (Financial Accounting).

• TM1. Lectures and Interactive Sessions (theoretical content).
• TM2. Active and Inquiry-Based Learning (solving and discussing practical cases).

Learning Outcomes (LO):

• LO1. To know and understand the process of determining costs and results in organizations.
• LO2. To know and understand the accounting procedures for determining and analyzing costs and results in organizations.
• LO3. To know and understand the accounting procedures for inventory valuation.
• LO4. To use costs to provide the information necessary for planning, control, and decision-making.

Associated Competencies (AC):

• AC1. Analytical Thinking: the ability to conceive and understand a management accounting system.
• CD2. Strategic Reasoning: the ability to use data provided by management accounting in inventory valuation, analysis, and decision-making.
• CD3. Communication: the ability to explain the constraints and defend the choices made in defining the cost accounting system.

1. Management Accounting

• 1.1. Scope and objectives of Management Accounting
• 1.2. Income Statement: by Nature and Functions
• 1.3. Articulation Systems between Financial Accounting and Management Accounting
• 1.4. Recent Developments in Management Accounting

2. Fundamental Concepts of Management Accounting

• 2.1. Costs/expenses, expenses and payments versus Income/Income, revenues and receipts
• 2.2. Cost Objects, Production Cost, Complex Cost and Economic-Technical Cost
• 2.3. Product Costs and Expenses for Periods
• 2.4. Classification of costs/expenses and income/income: Control and Decision Making
• 2.5. Relevant Costs and Income for Decision Making

3. Production cost components

• 3.1. Materials
• 3.2. Labour
• 3.3. General (indirect) production costs
• 3.4. Costs of finished production and production in process of manufacture
• 3.5. Extra production costs

4. Inventory Costing Systems

• 4.1. Alternative Costing Systems
• 4.2. Complete Total Costing
• 4.3. Rational Costing
• 4.4. Variable Costing
• 4.5. Costing alternatives and effects on income

5. Costing based on Cost Centers

• 5.1. Functional division of costs
• 5.2. Cost centers. Main and Auxiliary Centers
• 5.3. Primary and secondary breakdown of costs by Centres. Reciprocal benefits.
• 5.4. Cost Calculation Maps

6. Activity Based Costing (ABC)

• 6.1. ABC and cost center-based costing
• 6.2. Activities and expense drivers
• 6.3. Cost Calculation Maps

7. Calculation of Production Cost and Manufacturing Regimes

• 7.1. Manufacturing regimes
• 7.2. Direct Method (order-to-order or production-order costing)
• 7.3. Indirect Method (process costing)
• 7.4. Mixed Method

8. Joint Production

• 8.1. Reasons for sharing joint costs
• 8.2. Types of joint products: co-products, by-products and waste
• 8.3. Criteria for sharing joint costs by co-products
• 8.4. Criteria for sharing joint costs between by-products and waste.

9. Cost-Volume-Profit Relationships

• 9.1. Relationships between costs and volume
• 9.2. Cost Behavior
• 9.3. The contribution model
• 9.4. CVP Analysis in Variable Costing
• 9.5. The sales mix concept
• 9.6. CVP Analysis Assumptions

Assessment may alternatively take the form of:
AM1. Periodic Assessment - Tests
AM2. Assessment by Exam.

AM1. Periodic Assessment - Tests (AP-T)

This assessment system consists of three written tests (P1, P2, and P3) with no reference materials allowed and to be taken during the semester, on dates to be set by the teaching team and communicated to students in the first week of classes. The following rules apply to this assessment system:

1.1. Each written test will be graded on a scale of 0 to 20, rounded to four decimal places;

1.2. For each written test, registration within the deadlines to be defined is mandatory if requested by the teaching team;

1.3. The first written test will account for 30% of the final mark, and the last two will each account for 35%, so the final mark in this assessment system (AP) will be obtained using the following formula:

AP = 30%*P1 + 35%*P2 + 35%*P3

1.4. A minimum grade of 7 is required in each of the tests;

1.5. Students will not pass under this assessment system if one or more of the following conditions apply:

AP<9.5 or P1<7 or P2<7 or P3<7

1.6. In the case of AP ≥ 9.5 (and P1≥7, P2≥7, and P3≥7), the student will pass and be awarded a final grade equal to AP rounded to two decimal places;

1.7. If the final grade (AP) is equal to or higher than 16 points, this grade may have to be validated by means of an oral examination, which will result in a final grade between 16 points and the grade obtained (AP);

1.8 Mini tests may also be carried out in class, the average grade of which, if higher than 14 points, excluding the two lowest grades, will result in a 5% bonus on AP (AP = 30%*P1 + 35%*P2 + 35%*P3). Whether or not these mini tests are carried out will depend on student participation and the number of students per class who attend classes regularly.

AM2. Assessment by Examination

2.1. Under this assessment system, students will take a written examination with no reference materials allowed (on the date to be established in the examination calendar);

2.2. Students will pass the examination if they obtain a mark of 10 or above;

2.3. If the grade obtained in the written exam is equal to or higher than 16 points, this grade may have to be validated by means of an oral exam, which will result in a final grade between 16 points and the grade obtained in the written exam.

Regardless of the assessment method, in case of reasonable suspicion of fraud detected during the mark-marking stage, the student will be required to take an oral examination with no reference materials allowed, to verify the knowledge and skills demonstrated in the written examinations. The oral examination will be conducted by an examination board formed by the lecturer responsible for the course unit and two further lecturers from the same subject area. Should the student fail to demonstrate the knowledge and skills shown in the written examination, that examination will be invalidated.

NAO