Strategic Management Accounting

PR1. Command of the fundamental concepts of Management/Cost Accounting – absorption and variable costing systems, cost-volume-profit analysis and budgeting (undergraduate Management Accounting).
PR2. Ability to read and interpret financial statements – balance sheet and income statement (undergraduate Financial Accounting).
PR3. B2-level English proficiency, essential for reading the course’s main bibliography, most of which is written in English.

The following teaching-learning methodologies (TM) will be used:

TM1. Theoretical and expository classes: presentation of fundamental concepts and tools of strategic management accounting.
TM2. Discussion of practical cases and problem solving: application of concepts in real or simulated situations, promoting critical analysis.
TM3. Group work: research and development of topics related to the course unit, with oral presentation.
TM4. Challenges/Questions in class: regular practical exercises or reflective questions, solved individually or in groups, without recourse to AI (see AM3).
TM5. Self-study: encouraging reading and analysis of support materials and research to reinforce the content presented in class.

After completing this course unit, the student will be able to:

Learning Objectives (LO):

• LO1. Analyse the role of management accounting as strategic support in decision-making.
• LO2. Explore management control methodologies and tools that support the formulation and implementation of organisational strategies.
• LO3. Develop a critical view of the integration of management accounting into strategic value creation processes.

Competences to be Developed (CD):

• CD1. Apply management accounting techniques in the strategic alignment of organisations (LO1).
• CD2. Analyse and interpret strategic performance reports (LO1; LO3).
• CD3. Know management control systems and their strategic application (LO3).
• CD4. Identify and quantify critical success factors (LO3).
• CD5. Demonstrate critical capacity to evaluate and propose practices that increase organisational value, communicating and defending that evaluation orally to others (LO3).

P1 Introduction to Strategic Management Accounting
1.1 Fundamental concepts and evolution of strategic management accounting
1.2 Differences between traditional and strategic management accounting

P2. Strategic management accounting tools
2.1 Value chain and cost analysis along the chain
2.2 Activity-Based Management cost analysis
2.3 Strategic benchmarking

P3. Strategic management control systems
3.1 Key performance indicators aligned with organisational strategies
3.2 Results-based control and accountability

P4. Strategic Cost Management
4.1 Target Costing
4.2 Cost management for innovation and differentiation
4.3 Analysing costs and prices in a competitive context

P5. Organisational Performance and Value Creation
5.1 Measuring and evaluating strategic performance
5.2 Integrated reports and sustainable value creation
5.3 Practical cases of strategic application

A) NORMAL SEASON - Continuous and Periodic Assessment:

AM1. Group Work (40%): producing a written document on a strategic cost management topic, among the subjects relevant to the course, defined by the teacher together with the students, preferably based on real company data. Minimum mark of 9.5.
AI directive: Level 2 (AI as a support tool for research, proofreading and formatting). A mandatory AI-use declaration must be attached, listing prompts used and the group's critical input.

AM2. Individual Oral Presentation and Defence (25%): individual presentation, by each group member, of the main results of the group work (AM1), answering the teacher's questions on concepts, calculations and methodological choices. Minimum mark of 9.5. Mandatory for validation of the group mark (AM1).
AI directive: Level 0 (no AI whatsoever).

AM3. Class Challenges/Questions (15%): challenges and/or questions to be solved/answered individually or in groups, proposed throughout the lessons.
AI directive: Level 1 (AI allowed only in prior self-study; in-class resolution without AI).

AM4. Individual Written Exam (20%): minimum mark of 8 (0-20 scale).
AI directive: Level 0 (no AI whatsoever).

Final Grade Formula (Normal Season):
FG = 0.40 × AM1 + 0.25 × AM2 + 0.15 × AM3 + 0.20 × AM4

B) APPEAL PERIOD:

Students who did not pass in the Normal Season, or who wish to improve their grade, must complete both of the following elements (assessment exclusively by written exam is not allowed):

AM4R. Individual Written Exam (60%): minimum mark of 9.5.
AM2R. Individual Oral Grade-Defence Test (40%): minimum mark of 9.5. Mandatory.
AI directive (both elements): Level 0 (no AI whatsoever).

Final Grade Formula (Appeal Period):
FG = 0.60 × AM4R + 0.40 × AM2R

Grade Improvement and Retention of Partial Grades:
Students who passed through continuous assessment and wish to improve their final grade may retake only the Individual Written Exam (AM4) in the Appeal Period, keeping the grades obtained in AM1, AM2 and AM3 within the same academic year.

General AI Usage Directives:

• Level 0 - Use not permitted.
• Level 1 - Permitted only for self-study, not for producing assessment elements.
• Level 2 - Permitted as a support tool (research, proofreading, formatting), with a mandatory use declaration and critical record of prompts used.

Non-compliance with the AI usage directives constitutes an academic infringement, subject to the applicable disciplinary rules.

All assessment elements are graded on a 0-20 scale.

NAO