Management Accounting for Agricultural Business

This curricular unit requires solid knowledge of Financial Accounting since management accounting is based on elements of financial accounting, namely costs and income.

Teaching method for the development of skills using computerized didactic material and other active teaching techniques that will be sought to be incorporated into the classroom, where the use of e-learning appears as the virtual learning method and students will interact not only with the teacher, but also with each other.

Goals

Management accounting does not have its own regulations applicable to the private sector, which allows each company to use the instruments that best suit its objectives and needs, in terms of information to be provided. However, Management Accounting is a recurrent support tool for managers and business decision-makers, which makes it possible to obtain useful information for valuation, control, planning and decision making. Thus, the objective of this curricular unit is to make known the importance of Management Accounting in obtaining adequate information in accordance with the established objectives, which will allow preparing for the best operational and strategic decisions in agricultural companies.

Skills to develop

 After studying this curricular unit, students should distinguish: Direct and Indirect Expenses; Embeddable and Non-Incorporable Expenses; Fixed and Variable Expenses; Subactivity Expenses; Administrative Expenses and Total Costs.

After these concepts have been apprehended, they should understand the allocation of asset costs, through the various costing systems, recognize and apportion indirect costs by the respective cost objects, according to various criteria for allocation and allocation of indirect costs.

Introduction

 1 – Management Accounting as a management tool

 1.1 – Historical Evolution of Accounting and Management

1.2 – Purposes of the Information Produced

1.3 – Differences between Financial Accounting and Management Accounting

1.4 – The Chart of Accounts – Class 9 Accounts

1.4.1- The Chart of Accounts

1.4.2 – Class 9 Accounts

2 – Costs and Expenses

 2.1 – Classification of Expenses

2.1.1 – Direct and Indirect Expenses – Concept

2.1.2 – Embeddable and Non-embeddable Expenses

2.1.3 – Fixed and Variable Expenses

2.1.4 – Subactivity Expenses

2.1.5 – Administrative Expenses

2.2 – Components of industrial cost and Cost Stages

2.3 – Product costs and period costs

3 – Cost/Volume/Results Analysis or CVR Analysis

 3.1- Limitations of the Cost/Volume/Results analysis

3.2 – Determination of Result

3.3 – Contribution Margin

3.4- Critical Sales Point, Profitability Threshold and Break Even Point

3.5 – Multi-Product Critical Point

3.6 – Margin of Safety

3.7 – Marginal Result

4 – Attribution and Allocation of Indirect Costs – Criteria

 4.1 – Traditional Systems

4.2 – Method of Homogeneous Sections

4.3 – Activity-Based Costing System (ABC)

5 – Production Regimes

 5.1 – Disjoint Production

5.2 – Joint Production

5.3 – Defective Production

6 – The Time-Driven Activity-Based Costing System

 6.1 – Activity Cost Drivers and the Origin of Time Driven Activity Based Costing

6.2 – From ABC to Time Driven Activity Based Costing

6.3 – Advantages and Disadvantages of Time Driven Activity Based Costing

6.4 – The Time driven-ABC methodology

Conclusion

NAO

Fundamental Bibliography

Silva, R. (2022). Manual de Apoio à Disciplina de Contabilidade de Gestão das Empresas Agrícolas – Elaboração Própria.

 Caiado, A. C. P. (2020). Contabilidade analítica e de gestão. (9.ª Ed). Lisboa: Áreas Editora.

 Ferreira, D., Caldeira, C., Asseiceiro, J., Vieira, J., & Vicente, C. (2017). Contabilidade de gestão – Estratégia de Custos e Resultados Casos Práticos – Volume I. Sintra: Rei dos Livros.

 Kaplan, R.S. & Anderson, S.R. (2007). Time driven activity-based costing – A simpler and morepowerful path to higher profits. Boston, MA: Harvard Business School Press.

Complementary Bibliography

Cooper, R. e R. S. Kaplan (1988), Measure costs right: make the right decisions, Harvard Business Review, 66(5), 96-103.

Cooper, R., & Kaplan, R. S. (1998). The promise-and peril-of integrated cost systems. Harvard Business Review, 76(4), 109-120.

Dejnega, O. (2011), Method time driven activity based costing–literature review. Journal of Applied Economic Sciences (JAES), 1(15), 9-15.

Everaert, P., W.Bruggeman, G.Sarens, S.R. Anderson e Y. Levant (2008). Cost modeling in logistics using time-driven ABC: Experiences from a wholesaler. International Journal of Physical Distribution & Logistics Management, 38(3), 172-191.

 Gervais, M., Y. Levant & C. Ducrocq (2010), Time-driven activity-based costing (TDABC): An initial appraisal through a longitudinal case study. Journal of Applied Management Accounting Research, 8(2), 1-20.

Nabais, C. & Nabais, F. (2016). Prática de Contabilidade Analítica e de Gestão. Lisboa: Lidel.

Namazi, M. (2016). Time driven activity based costing: theory, applications and limitations. Iranian Journal of Management Studies, 9(3), 457-482.