SCHOOL OF ACCOUNTANCY

COLLEGE OF BUSINESS
UNIVERSITI UTARA MALAYSIA
SECOND SEMESTER 2014/2015 (A142)
COURSE CODE
COURSE NAME
PRE-REQUISITE

1.0

: BKAM3033
: ADVANCED MANAGEMENT ACCOUNTING
: BKAM3023 MANAGEMENT ACCOUNTING II

SYNOPSIS
This course covers the advancement of management accounting issues and
techniques in contemporary business environment. The topics discussed
include recent developments and contemporary issues in management
accounting, specifically pertaining to performance management, strategic
management accounting and management control. The course concludes with
issues pertaining to managing human capital and management of relationships
among employees in organisation.

2.0

COURSEOBJECTIVE
Upon completion of the course, students are expected to:
2.1

understand the recent developments of management accounting issues

and the roleof management accounting in modern business
environment.
2.2
develop analytical ability in using management accounting information
for strategic decisions, performance management and management
control.
2.3
think critically of the application of strategic management accounting
in organisation.
2.4
understand the importance of managing human capital and
relationship in organisation
3.0

LEARNING OUTCOMES
Upon completion of the course, students will be able to:
3.1 explain how the practice of management accounting should go along with
the changing and dynamic environment.
3.2 discuss the contemporary management accounting issues.
3.3 evaluate organizational performance using appropriate measures.
1

3.4 Apply management control system, strategic management accounting and

human capital management in firm activities and their effect on
performance.
4.0
NO.
1

COURSE CONTENT
TOPIC
RECENT DEVELOPMENTS IN MANAGEMENT
ACCOUNTING, CONTEMPORARY ISSUES AND
THE IMPACT OF TECHNOLOGY ON
MANAGEMENT ACCOUNTING

REF.

HOURS

Text book
Che Zuriana
(Chapter 1)
Atkinson

(Chapter 1)

The scope of management accounting

The gap between theory and practice
Management accounting change
The impact of technology on management accounting
Modern production system: CAD/CIM, Cellular
Manufacturing, AMT, FMS
Inventory Management
- Reasons for carrying inventory
- Costs related to holding and managing inventory
- EOQ, JIT, MRP, MPS and Throughput Costing
Activity-based Management
Total Quality Management
Value Chain Analysis
2

STRATEGIC MANAGEMENT ACCOUNTING

Text book
Che Zuriana
(Chapter 3)
Atkinson
(Chapter 7 &
8)

Concept and strategic issues in management accounting

The need to handle strategic issues
Strategy and technique:
- Life cycle costing
- Kaizen costing
- Target Costing
- Benchmarking
Approaches in handling strategic issues:
- Porter approach (value chain analysis)
- Simmonds approach (data orientation vs.
Information)
- Bromwich approach (cost benefit analysis)
- Ouchi approach (culture)
Strategic Environmental Management Accounting
2

Environmental cost
Sustainable development and competitive
advantage

BUDGETING AND MANAGEMENT CONTROL

SYSTEM

Text book
Che Zuriana
(Chapter 4)
Atkinson
(Chapter 9
& 10)
Merchant

Text book
Che Zuriana
(Chapter 5)
Atkinson

The concept of control and management control

The Structure and system of management control
Types of control used in organization
The concept of feedback and feed forward control and
their application in the use of budgets for planning and
control
`What-if scenarios; consequences and impact on master
budget
Behavioural aspects of budgeting
- Designing the budget process
- Influencing the budget process
- Criticism of the traditional budgeting model :
beyond budgeting technique
4

PERFORMANCE MANAGEMENT

(Chapter 2)

The Balanced Score Card

- Financial and non-financial measures
- The strategy map
Measuring customer performance (e.g. customer
profitability)
Performance evaluation
- Service organization
- Non-profit organisation
Reward Systems
- Effective performance
- Measurement and reward system (tying rewards to
performance)
Critical success factors and key performance indicator
(KPI)
5

MANAGING HUMAN CAPITAL

Text book
Che Zuriana
(Chapter 7)
Mullins, L
3

4.5

Human resources theories

- The psychological contract and its importance to
retention
Human resources activities
- Developing employee ability, motivation
- Improving opportunities for employee contribution
- Human resource plan

MANAGEMENT OF RELATIONSHIPS

Text book
Che Zuriana
(Chapter 6)
Mullins, L

4.5

Concepts of power, bureaucracy, authority, responsibility,

leadership and delegation
- Relationship between managers and subordinates
- Tools for managing and controlling individuals,
teams and networks and group conflict
Importance of organisation culture
- Cultural development
- Legitimacy of action
- Domination and Sustenance of Power
Management of conflict: nature, causes, approaches
Issues of business ethics and corporate governance
TOTAL CONTACT HOURS

42

Note:
Mid Semester break:
5.0

REFERENCES
MAIN:
CheZuriana, M.J., Rapiah, M., Amin, A., &Ahmadasri, A. (2011).Advanced
Management Accounting.Pearson Education.
ADDITIONAL:
Atkinson, A.A, Kaplan, R.S, Matsumura E.M
(2012).Management Accounting. 6th ed., USA: Pearson.

&

Young,

S.M

Drury, C. (2008). Management and Cost Accounting.(7th Ed.). UK: SouthWestern Cengage Learning.
Mullins, L. (2005).
7thed.,FT/Prentice Hall.

Management

and

OrganisationalBehaviour,

Merchant, K, & Van der Stede, W.A (2007). Management Control Systems:
Performance Measurement, Evaluation and Incentives. 2nd ed., UK:
FT/Prentice Hall.
Young, S.M. (2007). Readings in Management Accounting. 5th ed., New
Jersey: Prentice Hall.
Management Accounting Research Journals (UK), Management Accounting
(US).
6.0

TEACHING METHODS
This course will be conducted for fourteen (14) weeks, comprising three (3)
hours of lecture and one (1) hour of tutorial/discussion class per week. During
this period, article reviews and case discussions will be held on a continuous
basis. Materials for lectures, cases, announcements, assignments, and
exercises are available on the learning zone website or lecturers personal
website.
Students are expected to be prepared with materials that are going to be
discussed in lectures and tutorials. Students are encouraged to actively
participate during discussions.
COURSE ASSESSMENT
Coursework
Comprehensive Final Examination
Total

8.0

40%
60%
100%

ATTENDANCE
Students are required to fulfill at least 80% of class attendance in order to sit
for the final examination as governed by the Universiti Utara Malaysia
regulations. Students who fail to meet the above requirements for whatsoever
reasons will be barred from taking the final examination. The 20% absence
from lectures includes medical leaves.

9.

ACADEMIC DISHONESTY
Students are reminded that academic dishonesty is the most serious academic
offence. Examples of academic dishonesty are cheating and plagiarism,
bringing in notes during examination, and taking the examination on behalf of
another student. Once the student is convicted of the above offence, the
examination result will be withheld and annulled and/or other serious penalties
may be taken against the student.