Management Accounting I

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An expository methodology of the main concepts and theoretical foundations will be used, accompanied by the resolution of practical cases, thus allowing students a better understanding of its application .Additionally, a active methodology will be employed in the search for solutions to the project work, further enhancing students’ engagement and practical skills.

Objectives

1.Identify the main differences and similarities of Financial and Management Accounting
2.Understand the different costs classifications inherent to the costs calculation and to the decision making
3.Reclassify costs by nature in costs by functions, through a double-entry table
4.Relate the concepts of raw-materials purchase, raw-materials consumption, total manufactured cost, cost of
goods manufactured, cost of goods sold, gross margin, earnings before interests and taxes (EBIT), earnings
before taxes (EBT), and net income;
5.Elaborate the Income Statements by Functions;
6.Transform the Income Statements by Nature into Income Statements by Functions;
7.Distinguish process costing from job-order costing and identify situations in which each one of them can be
adopted;

SKILLS:

Students must know how to determine, register and analyze the components of the cost of goods, the cost of production in all manufacturing phases of a processing unit or a service provider.

Students must know how to prepare an Income Statement by Functions.

I – MANAGEMENT ACCOUNTING AND THE BUSINESS ENVIRONMENT

1. Management’s work and the need for Management Accounting Information;
2. Comparison between Financial Accounting and Management Accounting;
3. Scope of Management Accounting;
4. The changing business environment: a) Just-in-Time (JIT); b) Total Quality Management (TQM); c) Process Reengineering; d) Theory of Constraints (TOC);
5. International competition;
6. Organizational structure;
7. Professional Ethics;
8. SNC (Accounting Standardization System) and Management Accounting.

II – COST: TERMINOLOGY, CONCEPTS, AND CLASSIFICATIONS

1. Overall classification of costs;
2. Product costs versus period expenses;
3. Classification of expenses in financial statements;
4. Product costs – a broader view (raw materials, direct labor, and indirect production costs);
5. Classification of costs and expenses according to behavior;
6. Classification of costs according to allocation to the cost object;
7. Classification of costs for decision making;
8. Income statement by function;
9. SNC terminology and standards.

III – JOB ORDER COSTING SYSTEM

1. Job order costing and process costing;
2. Job order costing – an overview;
3. Job order costing – the flow of costs;
4. Challenges in applying indirect costs;
5. Integration of accounting systems;
6. Monist systems;
7. Dualist systems;
8. Job order costing in service companies.

IV – PROCESS COSTING SYSTEM

1. Comparison between job order costing and process costing;
2. A perspective on the flow of costs in process costing;
3. Equivalent production units;
4. Production report – weighted average and FIFO method;
5. Costing per operation.

NAO

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., Elisabete, C., Fantasia, M. e Nunes, R., (2022), Contabilidade de Gestão – Métodos de Custeio e Valorização de Inventários – Exercícios, 2ª edição, Editora Almedina, Coimbra.

Aditional Bibliography:

 Ferreira, Domingos, Caldeira, Carlos, Asseiceiro, João, Vieira, João e Vicente, Célia (2014), Contabilidade de Gestão – Estratégia de custos e de resultados, 1ª ed., Rei dos Livros;

Garrison, Ray H, Noreen, Eric W. e Brewer, Peter C. (2015), Managerial Accounting, 15 th Edition McGraw-Hil;

 Caiado, António C. Pires, (2011), Contabilidade de Gestão, 6ª Edição, Áreas Editora, Lisboa;

 Pereira, Carlos Caiano e Franco, Victor Seabra (2001), Contabilidade Analítica, 6ª Edição, Lisboa

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