Credits: 6

Schedule: 07.01.2020 - 18.02.2020

Teacher in charge (valid 01.08.2018-31.07.2020): 

Prof. Teemu Malmi, PhD student David Derichs

Contact information for the course (applies in this implementation): 

 

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 at the latest. 

E-mail: david.derichs@aalto.fi



Teaching Period (valid 01.08.2018-31.07.2020): 

2018-2019: III (Spring 2019), Töölö campus

2019-2020: III (Spring 2020), Otaniemi campus

Learning Outcomes (valid 01.08.2018-31.07.2020): 

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 use of budgets and forecasts as part of the management systems and discuss management reporting in contemporary organizations.

Details on the course 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 principle

CUSTOMER 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 costs

COST INFORMATION FOR PRICING DECISIONS

·         Cost-based pricing decisions under monopoly conditions

·         Guest lecture: Ficora

TACTICAL PLANNING

·         Budgeting vs. tactical and financial planning

·         Scenario planning 

FINANCIAL 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 01.08.2018-31.07.2020): 

1. Lectures, 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 learning diaries. Lectures will not cover all the content of the course readings, but will provide additional insights and practical applications on topics covered.

Exam will be done electronically in the EXAM room.

Elaboration of the evaluation criteria and methods, and acquainting students with the evaluation (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*3=12 points) and 2+4 bonus points for insightful participation (1 per lecture ). 4 of the participation points are 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 manner

2

·         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


PARTICIPATION

Participation is self-assessed. The assessment is approved or rejected by the lecturer. 

Workload (valid 01.08.2018-31.07.2020): 

- Lectures 18 h

- Class preparation 24 h

- Exercises/group work 50 h

- Learning diaries 12 h

- Independent study 52 h

- Electronic exam 4 h

Details on calculating the workload (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



Study Material (valid 01.08.2018-31.07.2020): 

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.

Availability

Details on the course materials (applies in this implementation): 

Please refer to the course books and the specific lecture content. 

Course Homepage (valid 01.08.2018-31.07.2020): 

https://mycourses.aalto.fi/course/search.php?search=22E26000

Prerequisites (valid 01.08.2018-31.07.2020): 

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).

Grading Scale (valid 01.08.2018-31.07.2020): 

0-5.

Registration for Courses (valid 01.08.2018-31.07.2020): 

Via WebOodi. Please see WebOodi for the registration dates.

Further Information (valid 01.08.2018-31.07.2020): 

Exam will be done electronically in the EXAM room.

Additional information for the course (applies in this implementation): 

Come open-minded and be ready to discuss with fellow students and voice your opinions during class. Discussion and group work capabilities are soft-skills that are expected in most positions where a business graduate is expected to be working. 

Details on the schedule (applies in this implementation): 

Please refer to the MyCourses page for the exact dates, time and location of the lectures.

Description

Registration and further information