Advanced Management Accounting

Prerequisites (PR):

• PR1. Management and Administration: the management cycle and the various functional areas of organizations;
• PR2. Financial Accounting: Financial Statements and the Accounting Standardization System;
• PR3. Management Accounting: the different types of expenses and income and respective calculation methodologies.

The course module employs a varied pedagogical approach, combining different learning methods (LM):

LM1. Lecture method: theoretical presentation of key concepts.

LM2. Question-and-answer method: used to complement the lecture method.

LM3. Active learning methods: analysis and discussion of business cases, problem-solving, collaborative projects, and the development of applied projects.

LM4. Discussion of scientific articles.

Learning Objectives (LO):

By the end of the module, students should be able to:

• LO1. Understand the evolution of management accounting and its role in the formulation, implementation and monitoring of business strategy within complex organisational contexts.
• LO2. Critically analyse the suitability of different systems and advanced management accounting tools for the needs of organisations with distinct business models and competitive environments.
• LO3. Apply advanced methodologies for costing, planning, control and performance evaluation to support strategic and operational decision-making.
• LO4. Integrate financial and non-financial information into the analysis of organisational performance, promoting a multidimensional view of value creation.
• LO5. Assess the contribution of digital technologies, Business Intelligence, data analysis and Artificial Intelligence to the evolution of Management Accounting systems.
• LO6. Understand the principles of Environmental Management Accounting and its relevance in promoting sustainability, efficient use of resources and the creation of sustainable value.
• LO7. Develop evidence-based solutions to complex management problems, whilst taking into account economic, environmental and strategic criteria.

Competencies to be Developed (CD):

At the end of the module, students should be able to:

Application of knowledge

• CD1. Select and apply the most appropriate management accounting tools to different organisational contexts.
• CD2. Design cost analysis and decision-support models aligned with business strategy.
• CD3. Integrate financial and non-financial indicators into the assessment of organisational performance.
• CD4. Apply economic analysis techniques to the evaluation of investments and continuous improvement initiatives.

Critical analysis and decision-making

• CD5. Critically assess the quality and relevance of the information produced by management accounting systems.
• CD6. Identify opportunities for improving decision-support information systems.
• CD7. Formulate well-founded recommendations for resolving complex management problems.
• CD8. Assess the economic, strategic and environmental impacts of business decisions.

Digital skills

• CD9. Use digital tools to support the analysis and visualisation of management information.
• CD10. Interpret dashboards and performance indicators to support decision-making.
• CD11. Understand the potential of Business Intelligence, data analysis and Artificial Intelligence in modernising management accounting systems.

Cross-cutting skills

• CD12. Develop critical thinking and the ability to solve complex problems.
• CD13. Communicate the results of analyses clearly and substantively to different stakeholders.
• CD14. Work collaboratively to resolve business cases.
• CD15. Integrate sustainability and social responsibility considerations into the formulation of management solutions.

I – MANAGEMENT ACCOUNTING IN CONTEMPORARY BUSINESS MANAGEMENT

• 1.1 Objectives and evolution of management accounting.
• 1.2 The new role of management accounting.
• 1.3 Management accounting as an information system.
• 1.4 Management Accounting and Strategy.
• 1.5 Information to support decision-making.
• 1.6 Current trends and the future of the profession.

II – ADVANCED MANAGEMENT ACCOUNTING TOOLS

• 2.1 Activity-Based Management (ABM).
• 2.2 Target Costing.
• 2.3 Kaizen Costing.
• 2.4 Life-Cycle Costing.
• 2.5 Theory of Constraints (TOC).
• 2.6 Total Quality Management.
• 2.7 Quality Costs.
• 2.8 Just-in-Time and Backflush Costing.

III – ENVIRONMENTAL MANAGEMENT ACCOUNTING

• 3.1 Introduction to Environmental Management Accounting.
• 3.2 Environmental costs: Definition, methods of identification and measurement.
• 3.3 Physical flows and monetary flows.
• 3.4 Environmental indicators.
• 3.5 Environmental Management Accounting, decision support, and evaluation of environmental investments.
• 3.6 Circular Economy.
• 3.7 ESG and Environmental Management Accounting.
• 3.8 Digitalisation of Environmental Accounting.
• 3.9 Limitations and future trends in Environmental Management Accounting.

The assessment methods (AM) are as follows:

AM1 - Continuous/Periodic Assessment with a Test
Continuous assessment comprises the following assessment components:

• an individual test without consultation set in class, via the Moodle and/or Nónio platforms, on a date to be determined (T);
• a practical assignment, either individual or group-based, to be carried out both in and outside class (A).
  The final mark (F) for this assessment method will be calculated as follows:

F = 0.5 * T + 0.5 * A

Each of these assessment components is marked out of 20.

A student is considered to have passed if their CF is 10 or above.

AM2 - Continuous/Periodic Assessment with a Final Exam

This assessment method comprises the following assessment components:

• Completion of a practical assignment, to be carried out in and outside class, individually or in groups, in accordance with the provisions of section AM.1;
• Final exam without consultation to be held during the examination periods and on the dates scheduled for this purpose, in accordance with the examination timetable and the rules set out in section AM3.

In this assessment method, the final mark (F) will be calculated as follows:

F = 0.5 * A + 0.5 * E

Each of these assessment components is marked out of 20.

A student is considered to have passed if their FM is 10 or above.

AM3 - Final Exam

If a student chooses this form of assessment, or if they have chosen other forms of assessment but have not passed, they shall take a final exam without consultation during the scheduled examination periods and on the dates set for this purpose, in accordance with the examination timetable and the following rules:

• The written final exam will last no longer than 2 hours 30 minutes;
• The written final exam will be marked out of 20;
• For a student to pass, the mark obtained in the written final exam must be 10 or above.

Rules regarding assignments:

• Assignments (final and interim versions) must be submitted by the dates to be set;
• The grade assigned to each assignment will be weighted as follows: 40% for the final version of the written assignment, 30% for the various interim versions submitted at the end of each class, and 30% for the individual oral presentation by each group member;
• Where a student has opted for one of the assessment methods referred to in points A.1 or A.2, the mark obtained for the practical assignment (A) will be valid for all assessment periods of the academic year in which it was obtained.
• AI Guideline for Writing Assignments: Level 2 is permitted (AI as a tool to assist with writing and code drafting). Students must attach a statement of AI use that includes a list of the prompts used and a record of their critical analysis.

Validity and validation of marks obtained:

• Only the mark obtained in the final exam may be subject to improvement during the appeal period;
• In the event of well-founded suspicion of cheating detected during the marking of examinations and/or assignments, the student will be summoned to sit an oral examination to verify the knowledge and skills demonstrated in the written examinations. The oral examination will be conducted by a panel comprising 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 annulled.

NAO