Subject name |
Cost Analysis for Decision Making |
Study |
Master in Business Administration |
ECTS |
3 |
Four-month period |
Second module |
Type of subject | Compulsory |
It is virtually impossible for managers to function without information. Information is vital for the management process, and accounting is one of the major information systems within any organisation. Managerial accounting studies the generation, communication, and interpretation of internal information, both financial and non-financial. A sound understanding of managerial accounting is absolutely necessary for managers to fulfil their organisational roles, responsibly and competently.
Cost accounting provides key data to managers for planning and controlling as well as costing products, services and customers. The main focus of this course is how cost accounting can help managers to both operational and strategic decision-making
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General Competences
Basic Competences
Specífic Competences
Transversal Competences
Unit 1. Introduction
Introduction
Cost accounting, decision making and control
The accountant role in an organization
The role of ethics in cost accounting
Master class
Unit 2. Costs
Introduction to costs concepts
Product and period costs
Direct and indirect costs
Variable and fixed costs
Sunk costs
Opportunity costs
Practice exercise
Unit 3. Cost- Volume - Profit Analysis
Introduction to CVP analysis
Contribution margin
Breakeven point and target income
Operating Leverage
CVP analysis for decision making
Sensitive analysis
Master class
Unit 4. Costing Systems
Introduction
Actual costing and normal costing
Job costing
Activity based costing
Process costing
Master class
Unit 5. Budgeting and Variance Analysis
Introduction
Operating budget
Variance analysis
Master class
Unit 6. Relevant Costs
Introduction
Decision making and relevant information
Make or buy decisions
Special order decisions
Product mix decisions
Master class
The different tasks and activities programmed during the semester have been developed with the goal of adapting the learning process to the different capabilities, necessities and interests of the students.
The activities included in the subject are:
In the weekly program you can find the specific tasks you need to complete in this subject.
These activities are combined with the following aspects:
The hours dedicated to each activity are detailed as follows:
Assignments |
Hours |
Assistance to virtual classes | 9,0 |
Basic material study | 22,0 |
Additional resources readings | 4,0 |
Task and practice cases | 9,0 |
Self-evaluation test | 18,0 |
Individual and group tutoring | 18,0 |
Collaborative work, forums, debates, etc. | 9,0 |
Master's Dissertation work development | - |
Final evaluation | - |
Total |
90 |
Basic bibliography
Unit 1
Available at the virtual campus under the art. 32.4 of the Spanish Intellectual Property Law*.
Unit 3
Bierman, Dyckman & Hilton (1990). Cost Accounting: Concepts and Managerial Applications. Boston: Kent-PWS.
Available at the virtual campus under the art. 32.4 of the Spanish Intellectual Property Law*.
Unit 4
Available at the virtual campus under the art. 32.4 of the Spanish Intellectual Property Law*.
Unit 5Available at the virtual campus under the art. 32.4 of the Spanish Intellectual Property Law*.
Unit 6
* This work is protected by copyright and its reproduction and public communication, in the available modality, is authorized under the art. 32.4 of the Spanish Intellectual Property Law. It is forbidden its subsequent reproduction, distribution and public communication in any form or by any means, except one printed reproduction by each authorized user.
The evaluation system is based on the following numerical chart:
0 - 4.9 |
Suspenso (D) |
(SS) |
5.0 - 6.9 |
Aprobado (C) |
(AP) |
7.0 - 8.9 |
Notable (B) |
(NT) |
9.0 - 10 |
Sobresaliente (A) |
(SB) |
The grade is made up of two components:
On-site final exam (60%). At the end of the semester, you need to assist a mandatory on-site final exam. You need to pass the final exam so the grade obtained from the assignments (continuous assessment) is summed up to the final grade of the subject.
Continuous assessment (40%): this type of assessment will be measured through the different assignments you need to complete during the course:
Remember that you can check the points (value) of each assignment in the weekly program.
Take into account that the sum of the grades of the assignments included in the continuous assessment is 6 points. You can fulfil as many as you want to a maximun of 4 points (which is the max. grade that you could acomplish in the continuous assessment). In the weekly program, you can find the grade of each assignment.
Assessment method |
Min. Score |
Max. Score |
Participation in forums, classes, etc. |
0% |
15% |
Task, practice cases and activities |
0% |
15% |
Additional readings |
0% |
10% |
On-site final exam |
0% |
60% |
Dr. Garen B. Markarian
Education: Dr. Markarian has 15yrs+ experience in management education at the undergraduate, masters, executive, and Ph.D. level. He currently is the academic co-director of the Venture Capital and Private Equity executive education program, and the co-director of the WHU risk management program partnered with the Stockholm School of Economics. Dr. Markarian has earned a B.S. in biology from American University of Beirut, and a Ph.D. from the Weatherhead School of Management at Case Western Reserve University.
Professional experience: Garen Markarian holds the chair of financial accounting at WHU - Otto Beisheim School of Management. As an international scholar specializing in corporate finance and governance, he has taught at IE Business School (Madrid), HEC (Paris), Bocconi, (Milan), Concordia (Montreal), Rice (Houston), and Case Western Reserve (Cleveland). He has previously held the position of First Regional Economic Officer for Western Asia at the United Nations.
Lines of research: Dr. Markarian has extensive experience in research on governance mechanisms, executive compensation, the banking crisis, stock markets, and financial statements and valuation.
Juan Francisco Prados
Education: Juan Francisco Prados is specialized in Financial Management and Leadership and has earned a Executive Master in Innovation and an Executive MBA at the ESIC Business & Marketing School.
Professional experience: Being a highly experienced professional in the field of Financial Management and Project Manager, he is currently working as a Freelance Professional. He has almost 15 years of experience working for different companies internationally and developing projects for a wide diversity of economic sectors: tourism, commerce, industry and services.
Lines of research: Financial Leadership, Project Management, Business Consulting, TIC Strategy, e-Learning.
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Studying online means you can organize your study as you wish, as long as you meet the due dates of the different assignments (activities, tasks and tests). In order to help you, we propose the following steps:
Remember that in the virtual classroom of the master you can check how the different tools of the virtual classroom work: email, forum, online classes, sending the tasks, etc.
Please, take into account the following tips…
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