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: 07.01.2020 - 18.02.2020

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 03.12.2019-21.12.2112):

 

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 at the latest. 

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 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 01.08.2020-31.07.2022:

    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 30 points to pass. You can achieve 8 points per case (5*8=40 points in total), 3 point per learning diary (6*3=18 points) and 2+3 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

    3

    ·         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 01.08.2020-31.07.2022:

    - 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.

    Availability

  • Applies in this implementation:

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

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. Discussion and group work capabilities are soft-skills that are expected in most positions where a business graduate is expected to be working. 

FURTHER INFORMATION

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