Management Control Systems

Base Knowledge

Management Accounting

Financial Accounting

Financial Management

Teaching Methodologies

Theoretical-practical classes, with theoretical exposition of the syllabus, accompanied by the resolution of practical cases particularly suitable to complement the problems developed in the theoretical exposition.

Learning Results

a) Goals

The U.C. of Management Control Systems aims to provide the student with the concepts, methods and techniques of management accounting and management control applied in decentralized organizations. It is intended that the student becomes aware of a set of management accounting techniques to support the segmentation of results and the operational decision-making process by managers, as well as a set of management control instruments that allow the definition, monitoring and implementation of the organization’s strategy.

b) Skills:

With the knowledge taught, it is intended that at the end of the course, the student will be able to:

  • Place Planning and Control in the Management subsystem.
  • Recognize the importance of financial and non-financial information for the decision-making process, developing and applying tools for analyzing costs and results, namely CVR analysis, relevant cost and income concepts and the contribution method in a risk context of economic constraints and strangulation of resources.
  • Understand the need for an adequate financial segmentation and monitoring system for the activities of managers and businesses, in order to analyze the profitability of the company’s multiple target segments.
  • Understand the principles of an adequate financial performance assessment system, using instruments to guide management control behavior, namely the existence of a structure based on responsibility centres, the use of internal transfer pricing and adequate financial measures of performance, including, namely, the concept of Residual Contribution Margin and its role as a measure of corporate performance.
  • Understand the importance of implementing management control piloting instruments, related to the planning process, budgeting, budgetary control and monitoring of activities carried out.
  • Implement a methodology for determining the causes of budget deviations, separating causes endogenous to the business from causes that are exogenous.


1.The key ideas of the management control

1.1. Nature, justification and the Management Control Systems

1.2. The Management Control definitions

1.3. Evolution phases of management control systems

2.Financial information for management

2.1. Accounting Requirements for Planning and Decision Making

2.1.1. Cost-Volume-Result (CVR) analysis.

2.1.2. Decision making – the relevant costs approach.

2.1.3. Theory of constraints (TOC)

2.2. The segmentation systems of financial value

2.2.1. Results finding: from the absorption logic to the contribution logic. The importance of The Residual Contribution Margin.
2.2.2. Activity Based Costing (ABC) in the segmentation of results.

3.Responsibility by the Results

3.1. Organizational structure in Responsibility centers.

3.2. Performance assessement criteria.

3.3. Internal transference prices.

4.The strategy and the management control

4.1. From Strategic Planning to Operational Planning.

4.2. The Budget Process

4.3. Budgetary Control and the importance of Benchmarking

4.4. Methodology for calculating variances.

Curricular Unit Teachers





  1. Jordan, H., J. C. Neves, e J. A. Rodrigues (2021), O Controlo de Gestão ao Serviço da Estratégia e dos Gestores, 11ª Edição, Áreas Editora.
  2. Cruz, I., Coimbra, C., Abrantes, L., Alves, M.C. e Quesado P. (2023), Contabilidade de Gestão Avançada – Gestão Estratégica de Custos e Avaliação do Desempenho, Edições Almedina.


  1. Anthony, R.N. e Govindarajan, V. (2007), Management Control Systems, 12ª Ed. Homewood, Ill.: McGraw-Hill.
  2. Lopes, Ilídio Tomás (2019), Controlo de Gestão – Uma Visão Integrada do Desempenho Empresarial, 1ª Edição, Actual.
  3. Garrison, Ray H. e Noreen, Eric W. (2011), Managerial Accounting, 14th ed., McGraw-Hill.