Mini-MBA in Management Accounting

A. MANAGING THE COST OF CREATING VALUE
1. Activity-Based Costing & Activity-Based Management
▪ Revision of ABC Costing
▪ ABC Cost Hierarchy
▪ Strengths and Weaknesses of ABC Costing
▪ Activity-Based Management (ABM)
▪ ABM Principles in Practice
▪ Customer Profitability Analysis

2. Modern Manufacturing Environment
▪ Modern Manufacturing
▪ Just-In-Time (JIT)
▪ Supply Chain Management
▪ Quality
▪ Conformance Costs
▪ Non-Conformance Costs
▪ Total Quality Management (TQM)
▪ Business Process Reengineering (BPR)
▪ Theory of Constraints and Throughput

3. Target Costing
▪ Target Costing
▪ The Use of Target Cost – Target Gap
▪ Strategies to Close the Target Cost Gap
▪ Kaizen Costing
▪ Using Technology to Reduce Costs
▪ Value Analysis / Value Engineering
▪ Functional Analysis

4. Life-Cycle Costing
▪ Lifecycle Costing
▪ The Product Life Cycle
▪ Lifecycle Cost Calculation
▪ Maximizing Revenue Using the Lifecycle Model
▪ Benefits of Lifecycle Costing
▪ Customer Life Cycles

B. MANAGING AND CONTROLLING THE PERFORMANCE OF ORGANIZATIONAL UNITS
5. Divisional Performance Measurement
▪ Divisionalized Structures
▪ Divisional Performance Measurements for Control Purposes
▪ Responsibility Centers & Performance Measures
▪ Investment Centers
▪ Return on Investment (ROI)
▪ Residual Income (RI)
▪ ROI vs RI
▪ Economic Value Added (EVA)

6. Transfer Pricing
▪ Definition of Transfer Pricing
▪ Purpose of Transfer Pricing
▪ Cost-Plus Transfer Pricing
▪ Goal Congruence
▪ “Sensible” Transfer Pricing for Goal Congruence
▪ The Rule for Sensible Transfer Pricing

7. Financial Performance Measurement
▪ The DuPont Relationship
▪ Performance Measurements – Benchmarking & TQM
▪ Limitations of Ratio Analysis

8. Alternative Performance Indicators
▪ Non-Financial Performance Indicators
▪ Kaplan and Norton’s Balanced Scorecard

9. Performance in the Not-for-Profit Sector
▪ Challenges in Performance Measurement
▪ Value for Money

C. CAPITAL INVESTMENT DECISION MAKING
10. Basic Investment Appraisal Techniques – ARR and Payback
▪ Capital Investment Decisions
▪ Investment Appraisal Techniques
▪ Basic Appraisal technique – ARR
▪ Strengths and Weaknesses of ARR
▪ Basic Appraisal technique – Payback
▪ Strengths and Weaknesses of Payback

11. Discounted Investment Appraisal Techniques (Net present Value and IRR)
▪ Discounted Cash Flow – Net Present Value
▪ Internal Rate of Return (IRR)
▪ Discounted Cash Flow Techniques (Annuity and Perpetuities)

12. Relevant Cash Flows in DCF (Inc. Tax and Inflation)
▪ Relevant costs
▪ Non–relevant costs
▪ Working capital
▪ Taxation
▪ Inflation
▪ Inflation – Fisher Equation

13. Discounted Cash Flow – Further Aspects
▪ Capital Rationing
▪ Replacement
▪ Real Options

14. Pricing
▪ Factors influencing selling price
▪ ‘Cost’ plus pricing
▪ Pricing – Economists viewpoint
▪ Profit Maximising Price / Output level
▪ Price elasticity of demand
▪ Pricing strategies

D. RISK AND CONTROL
15. Investment Appraisal Under Uncertainty
▪ Sensitivity analysis
▪ Monte Carlo Simulation
▪ Expected values
▪ Standard Deviation – NPV
▪ Value at Risk (VAR)
▪ Risk-adjusted discount rate

16. Risk and Uncertainty
▪ Risk Vs Uncertainty
▪ Risk profiles
▪ Decision Making Techniques (Risk and Uncertainty)
▪ Expected values
▪ Decision Rules
▪ Decision Trees
▪ Sensitivity Analysis

17. Risk Management
▪ Why incur risk?
▪ Risk management responsibilities
▪ Risk Management Process
▪ Types of risk
▪ Risk Assessment
▪ Stress Testing
▪ Ethical Threats
▪ Safeguards from within

18. Data Collection and Use of Information
▪ Business intelligence tools
▪ Risks of Information
▪ Data Protection Legislation
▪ Big Data
▪ Evaluation of Information systems