Management Accounting

Financial Accounting

Lecture on theoretical contents:

Active and interrogative in the resolution and discussion of practical cases

a.1 Objectives:

To provide the student with understanding and knowledge of the process of cost and results formation in companies and other institutions and the accounting procedures for their determination, analysis and use in the valuation of inventories, in the provision of information for planning and control, as well as in decision making. Thus, the objectives to be achieved during this semester, in general, are the following:

Recognize the objectives and scope of Management Accounting in all organizations
Identify and apply the basic concepts that support Management Accounting;
Know the main differences and complementarities and Identify and apply the various interconnection and coordination systems between Financial Accounting and Management Accounting
Identify and apply the various ways of classifying the different types of costs;
Provide detailed knowledge of the components that comprise, in absorption costing, the full cost of products and services;
Through concrete situations, identify the different manufacturing regimes and use the most appropriate cost accumulation systems, namely, production-order, process and mixed costing.
Learn to share indirect costs using the Cost Center method, distinguishing, among others, main and auxiliary centers;
Understand and use the Activity Based Costing (ABC) system as an alternative to traditional costing systems, from the perspective of sharing and imputing indirect costs, and from the perspective of value creation;
Know the main problems of joint production and proceed with the valorization of joint products

Provide a detailed knowledge of the various inventory costing systems, in particular the complete, variable and rational total costing system;
Recognize the existing relationships between Cost, Volume and Result (C-V-R), and use the C-V-R model in short-term planning;
Introduce the concepts, terminology and ways of using standard costs and calculate and analyze deviations.

a.2 Competencies to be achieved

Upon completion of the UC, the student must obtain the following general skills:

Capacity for analysis and synthesis and decision making;
Critical and self-critical capacity;
Ability to understand theory and apply it to practice;
Abilities to work in a group.
And the following technical skills:

Understand and know how to use accounting systems for calculating costs to value inventories, for planning and management control and for decision making;
Transpose these technical skills to the design and construction of information systems.

I – MANAGEMENT ACCOUNTING
1.1. Scope and objectives of Management Accounting
1.2. Income Statement: by Nature and Functions
1.3. Systems of Articulation between Financial Accounting and Management Accounting
II – FUNDAMENTAL CONCEPTS OF MANAGEMENT ACCOUNTING
2.1. Costs/expenses, expenses and payments versus Income/Income, income and receipts
2.2. Cost Objects, Production Cost, Complex Cost and Economic-Technical Cost
2.3. Product costs and period expenses
2.4. Classification of costs/expenses and income/income: Control and Decision Making
III – PRODUCTION COST COMPONENTS
3.1. The subjects
3.2. the workforce
3.3. General (indirect) production costs
3.4. Finished production and production in progress costs
3.5. The extra-production expenses
IV – INVENTORY COSTING SYSTEMS
4.1 Alternative Costing Systems
4.2 Complete Total Costing
4.3 Rational Costing
4.4 Variable Costing
4.5 Costing alternatives and effects on results

V – COSTING BASED ON COST CENTERS
5.1. Functional division of costs
5.2. Cost centers. Main and Auxiliary Centers
5.3. Primary and secondary distribution of costs by the Centres. Reciprocal benefits.
5.4. Cost Calculation Maps
VI – ACTIVITY-BASED COSTING (ABC)
6.1. ABC and cost center based costing
6.2. Activities and spending drivers
6.3. Cost Calculation Maps

VII – CLEARENCE OF PRODUCTION COST AND MANUFACTURING SCHEMES
7.1 Manufacturing regimes
7.2 Direct Method (costing by order or production order)
7.3 Indirect Method (process costing)
7.4 Mixed Method
VIII – JOINT PRODUCTION
8.1. Reasons for sharing joint costs
8.2. Types of joint products: co-products, by-products and waste
8.3. Criteria for sharing joint costs by co-products
8.4. Criteria for sharing joint costs by by-products and waste.
IX – COST-VOLUME-RESULT RATIO (CVR)
9.1 Relationship between costs and volume
9.2 Cost Behavior
9.3 The contribution model
9.4 CVR Analysis in Variable Costing
9.5 The sales mix concept
9.6 CVR Analysis Assumptions
X – STANDARD COSTS
10.1 Concept and use of Standard Costs

NAO

Bibliografia de suporte às aulas:

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

Caiado, A. Pires. (2015), Contabilidade Analítica e de Gestão, Áreas Editora, edição 10-2015.

Bibliografia Complementar :

Drury, Colin: Management Accounting for Business (2021), 11th edition. South-Western Cengage Learning ;

Ferreira, Domingos et al. (2014). Contabilidade de Gestão – Estratégia de custos e dos resultados, 1ª ed., Rei dos Livros;

Franco, Victor et al., (2010), Temas de Contabilidade de Gestão – Os Custos, os Resultados e a Informação para a Gestão, 3ª edição, Editora Livros Horizonte, Lisboa;

Franco, Victor et al., (2012), Temas de Contabilidade de Gestão – Gestão OrçAPental e Medidas de Avaliação do Desempenho, 3ª edição, Editora Livros Horizonte, Lisboa;

Garrison R.H., Noreen E.W., Brewer P.C.: (2020); Managerial accounting McGraw-Hill Irwin, 13th edition, New York,

Garrison, Ray H. e Noreen, Eric W. (2013), Contabilidade Gerencial, 14ª Edição, LTC Editora, Rio de Janeiro;

Hansen & Mowen (2005), Management Accounting, 7th ed., South-Western College Publishing; Im-13-124_A2 6;

Horngren, Charles T. et al. (2018), : Cost accounting a managerial emphasis- Prenhall;