Please note! Course description is confirmed for two academic years (1.8.2018-31.7.2020), which means that in general, e.g. Learning outcomes, assessment methods and key content stays unchanged. However, via course syllabus, it is possible to specify or change the course execution in each realization of the course, such as how the contact sessions are organized, assessment methods weighted or materials used.
LEARNING OUTCOMES
The objective of this course is to develop cost accounting and financial planning systems design skills. The first part of the course focuses on various cost accounting system design alternatives. We discuss the use, applicability, and implications of various overhead allocation methods in different business set-ups. The second part takes a close look at financial planning and forecasting. We explore the design, use, and implications of financial planning tools in contemporary organizations. The course theory through extensive case studies. The financial planning part of the course benefits from deep collaboration with Olarin Panimo (one of the on-campus breweries). After successfully completing the course, students are able to:
1) Evaluate the opportunities and challenges associated with different cost accounting systems in their business context
2) Evaluate the opportunities and challenges associated with different financial planning methodologies in their business context
3) Design scenario analyses and derive financial plans based on those for businesses in a variety of contexts
4) Integrate entrepreneurial soft-skills like creativity and self-reflection to business problems
Credits: 6
Schedule: 08.01.2019 - 19.02.2019
Teacher in charge (valid 01.08.2020-31.07.2022): David Derichs
Teacher in charge (applies in this implementation): David Derichs
Contact information for the course (valid 04.12.2018-21.12.2112):
Lecturer: David Derichs
You can contact me via email with questions you may have relating to the course. Should you prefer a meeting in person, please arrange it via email. You will get a meeting slot within three days the latest.
Visiting address: Room G3.05, Department of
Accounting, Aalto University School of
Business, Runeberginkatu
22-24, 00100 Helsinki
E-mail: david.derichs@aalto.fi
CEFR level (applies in this implementation):
Language of instruction and studies (valid 01.08.2020-31.07.2022):
Teaching language: English
Languages of study attainment: English
CONTENT, ASSESSMENT AND WORKLOAD
Content
Applies in this implementation:
The course content is subdivided into 6 components:
DESIGNING COST ACCOUNTING SYSTEMS
·
Introduction to the course and practicalities·
Overview of common cost accounting systems and their
logic·
Understanding and dealing with cost system complexity·
Activity-based costing (ABC) vs. time-driven
activity-based costing (TDABC)·
Revisiting the causality principleCUSTOMER
PROFITABILITY AND SHORT RUN PRODUCT MIX DECISIONS·
Traditional vs. costs-to-serve approach to customer
profitability·
The concept of customer value·
Costing under a Theory of Constraints (TOC)
operational management approach and the definition of variable costsCOST INFORMATION FOR PRICING DECISIONS
·
Cost-based pricing decisions under monopoly conditions·
Guest lecture: FicoraTACTICAL PLANNING
·
Budgeting vs. tactical and financial planning·
Scenario
planingFINANCIAL PLANNING
·
Rolling
forecasting vs. traditional forecasting·
The need
for rolling forecasts·
How to
forecast financials?FORECASTING
·
Rolling
forecasting vs. traditional forecasting·
The need
for rolling forecasts·
How to
forecast financials?
Assessment Methods and Criteria
Valid 01.08.2020-31.07.2022:
1. Lectures, reflection journals, participation activity and case reports (60% of the marking)
2. Final exam (40% of the marking)
Learning is based on case discussions, readings, short introductory lectures, guest lectures and reflection journals. Lectures will not cover all the content of the course readings, but will provide additional insights and practical applications on topics covered.
Applies in this implementation:
The course
will be graded out of 100 (+ 1 bonus) points. The final exam accounts for 40
points. You need to obtain a minimum of 20 points to pass. Case reports,
learning diaries and in-class participation account for the other 60 points.
Similarly, you need to collect a minimum of 20 points to pass. You can achieve 8
points per case (5*8=40 points in total), 2 point per learning diary (6*2=12 points) and 9 points for participation (1 per lecture and 3 additional ones for
outstanding overall participation). 1 of the participation points is considered
a bonus, allowing you to make up for one missed point during the course.Please reconfirm the exam dates
on weboodi.CASES
Cases are
due at the beginning of the class. During the second part of each lecture, we discuss
the case together. Bring one hard copy of your solution to facilitate class
discussion.Be
prepared to present your case solution during each lecture. You can design and
write your case solution as slide set / ppt-presentation. If the case contains
questions, the presentation should provide justified answers to the questions,
but should not be merely a presentation of the answers one by one. Instead, you
should present the case as a coherent story. I expect you to contribute to the case discussion.The
slides you submit have to meet business criteria:·
A
proper slides contains a title, visuals, and bullets only if you cannot capture
your message in a more structured way (e.g., tables, matrices, frameworks,…)·
Do
not cramp the slide with information/text. Every slide has one main point.·
Every
slide has to be fully reasoned·
Use
font size of minimum 13 (preferably larger)The cases
are to be submitted on MyCourses.LEARNING DIARIES
Learning diaries enhance your
learning and enable the teacher to judge the progress in class. Please take
them seriously. Diaries help you reflect upon what you learned during lecture and
from reading the course literature.General instructions
•
Length
about 2 pages.•
Use
page numbers and ensure that there is your name on every page’•
Name
the document as firstname_Lastname_LearningDiaryX•
Deadline
Fridays following the respective lecture at 11:30 am. (e.g. the first deadline
is on the fifth of January, reflecting on the lecture given on the second of
January).•
Diaries
are to be submitted through MyCourses only. You cannot submit the learning
diaries after the deadline has expired.Questions to keep in
mind when writing a diary•
What
were the main insights from lectures and readings?•
How
do these points relate to your earlier knowledge/experience?•
Did
some issues remain unclear? What would you like to know more about?•
Do
you disagree with something? Why?Ø DO NOT REPEAT
what the lecturers/ authors of the articles said.Ø REFLECT on
what you learnt, what the main insights were, and what you would still like to
know more about. Be critical. Present at least one question for which you would
like to get an answer.Grading
Each diary is
graded either 0 or 2. You can earn 12 points (6 x 2) from diaries.Points
Criteria
0
·
Addresses content superficially·
No/little evidence of own reflection·
Contains no/little or inappropriate critical comments; no/little
justification for these comments·
Presented in a disorganized, incoherent manner2
·
Essential content successfully integrated·
Includes critical comments with substantial justification that reflect
an integrated understanding of the issues·
Evidence of relating the material to other knowledge domains·
Reflections on the content in light of your previous experience·
The paper is well written and free of errors
Workload
Valid 01.08.2020-31.07.2022:
- Lectures 18 h
- Class preparation 24 h
- Exercises/group work 50 h
- Reflection Journals 12 h
- Independent study 55 h
- Exam 3 h
TOTAL=162 h
Applies in this implementation:
1 ECTS equals 27
hours of student work. Hence, this course comprises a total of 162 hours of
work. Work division is planned as following:[hours]
Day1
Day2
Day3
Day4
Day5
Day6
Exam
TOTAL
Cases/Assignments
10
10
10
10
10
Learning diaries
2
2
2
2
2
2
Lectures
3
3
3
3
3
3
Self study
10
10
10
10
10
10
22
TOTAL
15
25
25
25
25
25
22
162
DETAILS
Study Material
Valid 01.08.2020-31.07.2022:
Compulsory literature:
Kaplan, R. & Anderson, S., (2003). Time-driven activity-based costing.
Axson, D., (2009). Best Practices in Planning and Performance Management: Radically Rethinking Management for a Volatile World.
Articles listed under each lecture.
Suggested additional readings:
Barret, R., (2007). Planning and budgeting for the agile enterprise: a driver-based budgeting toolkit. London: CIMA publishing
For those who want to go deeper into cost accounting and activity based management: Kaplan, R. & Cooper, R (1998). Cost & effect: using integrated cost systems to drive profitability and performance. Harvard Business Press. Chapters 1 11
For those who want to go deeper into forecasting: Morlidge, S. & Player, S (2010). Future ready: How to master business forecasting. John Wiley & Sons.
For those with no cost accounting background: Horngren, C., Datar, S. M. & Rajan, M. (2011). Cost accounting A Managerial Emphasis.
Prerequisites
Valid 01.08.2020-31.07.2022:
Students should have taken at least one course that covers issues of cost accounting. At Aalto this would be: Management Accounting II (22C00300), Financial Accounting (22C00400).
Registration for Courses
Valid 01.08.2020-31.07.2022:
Via WebOodi. Please see WebOodi for the registration dates.
Applies in this implementation:
Come open minded and be ready to discuss with fellow students and voice your opinions during class.
FURTHER INFORMATION
Details on the schedule
Applies in this implementation:
All lectures take place from 12:15-15:00 on the following dates:
8.1. DESIGNING
COST ACCOUNTING SYSTEMS15.1. CUSTOMER
PROFITABILITY AND SHORT RUN PRODUCT MIX DECISIONS22.1. COST
INFORMATION FOR PRICING DECISIONS29.1. TACTICAL
PLANNING5.2. FINANCIAL
FORECASTING12.2. FORECASTING