Annex A

NANYANG TECHNOLOGICAL UNIVERSITY

NANYANG BUSINESS SCHOOL

Academic Year 2019/2020 Semester 2

Course Coordinator Dr Michelle Phang
Course Code AD2101
Course Title Management Accounting
Pre-requisites AD1101 Financial Accounting
No of AUs 4
Contact Hours 1 x 1-hour eLearning, 1 x 3-hour seminar

A) Course Description and Aims

This course covers the strategic nature of management accounting and the relevance of accounting information
for today’s competitive business environment. Emphasis is placed on the provision of accounting information
for planning, control and decision making; and the application of accounting information for supporting tactical
objectives and strategic missions of organizations. The course is divided into four major parts. The first part is
introductory to cost management and focuses on fundamental cost concepts and how costs can be measured
and accumulated under different costing systems. The second part covers the practices in cost management
and the use of essential accounting information in managerial planning, control and decision making. The third
part exposes students to performance evaluation of business segments and sustainability of organizations in
a globally competitive environment. The final part of the course links theories to practice in management
accounting by providing students with real life scenarios to integrate knowledge and to promote skills in critical
thinking and decision making.

The course aims to equip students with analytical skills for problem solving and managerial skills for decision
making and business presentation. After the completion of this course, students should be equipped with a
strong conceptual and technical knowledge in accounting and costing. Students should understand and
appreciate how accounting and costing information support organizational planning, decision making and
control. In particular, students should be able to apply their knowledge and skills to influence decisions that
create value for organizational stakeholders and improve corporate social responsibility.

B) Intended Learning Outcomes (ILO)

By the end of this course, students should be able to:

ILO Description
1 Discuss how management accounting fits into an organizational structure to support managerial
and strategic decisions
2 Explain various cost concepts, cost behaviors and costing systems, and discuss how different
views can affect approaches towards decision-making
3 Differentiate and compute cost of products or services using different costing systems
4 Discuss the strategic roles and objectives of cost allocation and apply various cost allocation
methods
5 Record and present costing information in financial statements
6 Discuss the importance of strategy, risk and behavioral issues in budgeting process
7 Prepare and present master and flexible budgets and supporting schedules
8 Perform variance analysis and discuss the impacts of variances on business operation
9 Perform CVP analysis and discuss the effect of different cost structures on pricing decisions
10 Perform differential analysis and discuss the constraints, risk and legal issues relating to
managerial and strategic decisions
11 Discuss organizational architecture and measure performance of managers and business units
using financial and non-financial measurements
12 Apply the general transfer pricing rule and discuss the economic consequences and behavioral
issues of transfer pricing
13 Discuss the relationships and implications of cost reduction, value chain, product life cycle and
total quality management on business operation
14 Discuss corporate sustainability practices, and the implications and challenges in recognizing and
measuring economic, environment and social impacts
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C) Course Content

Topic Title
1 Introduction to managerial accounting
2 Product and service costing
3 Overhead cost allocation
4 Budgetary planning
5 Flexible budgeting, standard costs and variance analysis
6 Cost-volume-profit analysis and segment reporting
7 Differential analysis and decision making
8 Contemporary management practices
9 Performance measurement in decentralized organizations

D) Assessment

ILO Assessment
Components NBS Learning Goal Weightage Team/Individual
Tested Rubric1
Seminar Activities ILO 1 – Oral Communication, 15% Team and
and Participation ILO 14 Teamwork and Individual
Interpersonal
CONNECT Online ILO 1 – Acquisition of 15% Individual
Homework ILO 14 Knowledge, Problem
Solving and Decision
Making
Project and ILO 1 – Oral Communication, 20% Team Oral
Presentation2 ILO 14 Teamwork and Communication,
Interpersonal, Critical Critical Thinking
Thinking and Peer
Evaluation
Final Examination ILO 1 – Acquisition of 50% Individual
ILO 14 Knowledge, Problem
Solving and Decision
Making
Total 100%
1
Rubrics will be made available on AD2101 NTULearn main website
2
Every project team member has to present

Seminar Activities and Participation (15%)

Seminar activities are designed to assess students’ understanding of learning materials assigned for each topic
and preparedness for seminar. Seminar activities; including online and other activities; are assigned during
seminars. Individuals or teams will be called upon to present and discuss assigned activities during seminars.

Participation in seminars is essential in this course. Meaningful participation is possible only if students have
read the materials assigned, watch the videos and attempt the online homework assigned prior to each seminar
session. Students are encouraged to carefully think about and approach the issues, theories and assumptions
relating to each topic. Intellectual discussions and sharing of ideas will help students develop broader, richer
and longer-lasting understanding of knowledge acquired.

During the discussion session, students are expected to raise questions on the materials assigned or to discuss
conceptual or technical issues relating to the online homework assigned for each topic. Students will be
evaluated based on the quality and consistency of contributions over the entire course on the following
dimensions: (1) sharing an insightful comment about a topic, (2) asking a pertinent question during discussion,
(3) volunteering a response to instructor’s questions, and (4) responding to instructor’s “cold call”. While
participation marks cannot be earned by merely attending seminar sessions, frequent absenteeism would likely
have a negative impact on assessment.

Online Homework (15%)

The purpose of online homework is threefold: (1) to ensure students are keeping up with the learning materials
to date, (2) to assess students’ understanding and application of the conceptual and technical knowledge, and
(3) to provide feedback to instructor about students’ learning progress. You must complete online homework
within the stipulated time frame stated on the Weekly Schedule. NO late submission will be accepted.

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Project and Presentation (20%)
This project requires students to apply and integrate concepts and theories that they have acquired during the
course onto a real-world setting. As this is a team assessment, each team member will be given the opportunity
to assess your team members’ participation and contribution online through eUreka. Detailed instructions for
the project and the guidelines for any mark adjustment arising from the confidential peer evaluation will be
posted on AD2101 NTULearn main website.

Final Exam (50%)

The final exam is open-book and will be held during the University’s normal exam period. The purpose of the
final exam is twofold: (1) to assess students’ understanding of the conceptual and technical knowledge within
the scope of this course, and (2) to evaluate students’ ability to apply conceptual and technical knowledge
acquired in resolving managerial issues and making sound business judgements and decisions. More details
on the final exam will be provided in due course on AD2101 NTULearn main website.

E) Formative feedback

Feedback is central to this course. Your instructor will provide verbal feedback through in-class discussion and
you will receive formative feedback through CONNECT for Online Homework. You will also receive verbal or
written feedback about your project presentation from your instructor or through eUreka. Summative group
feedback on the exam will be provided following the conclusion of the course.

F) Learning and Teaching approach

This course is structured into weekly readings, videos and online questions on CONNECT and 3-hour seminars.
Access to CONNECT is via NTULearn. Each topic consists of SmartBook readings and a series of short videos
followed by online homework to reinforce self-learning. It allows you to learn the fundamentals at your own
pace before the seminars. You can revisit the SmartBook readings and replay the videos as many times as
you wish but you must complete the graded online homework within a defined window period. Seminars create
opportunities to explore topics in more depth, to identify and sort out any misunderstanding, and to advance
skills in theory application and critical thinking.

The course adopts a learning and teaching approach that focuses on inculcating a culture of proactive
individual and collaborative learning. There is NO mini lecture during the seminars. The roles of your
instructor is to facilitate discussion and to guide students to acquire fundamental concepts and theories.
Students are expected to adopt, adapt and synthesize the acquired concepts and theories into practice.
Consistent with a proactive learning approach, self-practice questions will be made available on CONNECT.
The self-practice questions not only help to build the fundamental technical knowledge required for this course,
but also help to develop students’ individual learning abilities and attitudes toward active learning. Students
may attempt the self-practice questions anytime, anywhere, and you can revisit the self-practice questions as
many times as you want.

To succeed in this course, students are encouraged to read the materials assigned, watch the videos, complete
online homework and attempt self-practice questions assigned BEFORE the scheduled seminar for each topic.
Students must be ready to share what you have learned about a topic and contribute to discussion during
seminars. Your individual learning before seminars will determine how well you are able to contribute to
collaborative learning during seminars. The effort you put in will determine the extent of your learning from this
course.

Students will be organized into teams. Each team will have five students, teams larger or smaller than this
will only be permitted in very exceptional circumstances. Nominate a team leader. Teams must be formed by
Week 2 of the semester.

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Approach How does this approach support you in achieving the learning outcomes?
SmartBook Readings, The readings and videos allow you to learn the fundamentals at your own pace
Short Videos and Online before the seminars and the online homework reinforces self-learning by allowing
Homework you to identify and sort out areas that require more work.
Self-Practice Questions The Self-Practice Questions allow you to analyze and solve some intriguing
problems and to advance skills in theory application in a guided manner.
Seminar The interactive seminars provide ample opportunities for open discussion on the
conceptual questions raised and allow you to think critically and to share your ideas
and concepts with the class. This also allows your instructor to get the concepts
clearly through the entire class by involving you and ensure that the targeted
learning outcomes are being achieved.
Project and Presentation Some learning outcomes for this course are skills which are practical in nature and
cannot be achieved by reading and writing. The project and presentation provides
opportunity for hands-on learning and develops practical knowledge in the field.

G) Reading and References

Main Text
Noreen, E. W., Brewer, P. C. and Garrison, R. H. (2019), “Managerial Accounting for
NBG
Managers”, 5th edition, McGraw Hill.

Reference Texts
Atrill, P. and McLaney, E. (2018). “Management Accounting for Decision Makers”, 9th edition,
AM
Pearson.
Bhimani. A., Horngren, C. T. and Datar, S. M. (2019). “Management and Cost Accounting”,
BHD
7th edition, Pearson.
Blocher, E. J., Stout, D. E., Juras, P. E. and Smith, S. (2018). “Cost Management: A Strategic
BSJS
Emphasis”, 8th edition, McGraw Hill.
DRU Drury, C. (2018). “Management and Cost Accounting”, 10th edition, Cengage.
WT Warren, C. S. and Taylor, W. J. (2019). “Managerial Accounting”, 15th edition, Cengage.
Weygandt, J. J., Kieso, D. E. and Kimmel, P. D. (2019). “Managerial Accounting: Tools for
WKK
Business Decision Making”, 7th edition, Wiley.

Articles
Arnold, M. C. and Gillenkirch, R. M. (2015). “Using Negotiated Budgets for Planning and
AG Performance Evaluation: An Experimental Study”, Accounting, Organizations and Society,
43, 1-16.
Chong, V. K., Loy, C. Y., Masschelein. S. and Woodliff, D. R. (2018). “The Effect of
CLMW Performance Evaluation Schemes on Predicted Transfer Prices: Do Leadership Tone and
Perceived Fairness Concerns Matter?”, Management Accounting Research. 41, 11-19.
Elhamma, A. (2015). “The Relationship between Activity-Based Costing, Perceived
ELH
Environmental Uncertainty and Global Performance”, International Journal of Management
Accounting, 2(1), 73-90.
Gibbons, R. and Kaplan, R. S. (2015). “Formal Measures in Informal Management: Can a
GK
Balanced Scored Change a Culture?”, American Economic Review, 105(5), 447-451.
Humphreys, K. A., Gary, M. S. and Trotman, K. T. (2016), “Dynamic Decision Making Using
HGT
the Balanced Scorecard”, Accounting Review, 91(5), 1441-1465.
Joshi, S. and Li, Y. (2016). “What is Corporate Sustainability and How Do Firms Practice It?
JL A Management Accounting Research Perspective”, Management Accounting Research,
28(2), 1-11.
Van der Stede, W. A. (2015). “Management Accounting: Where From, Where Now, Where
VDS
To?”, Journal of Management Accounting Research, 27, 171-176.

Additional readings and learning materials may be prescribed as and when required by course coordinator or
your instructor.

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H) Course Policies and Student Responsibilities

General
You are expected to complete all assigned pre-class readings and activities, attend all seminar classes
punctually and take all scheduled assignments and tests by due dates. You are expected to take responsibility
to follow up with course notes, assignments and all course related announcements for seminar sessions you
have missed or posted by course coordinator or your instructor on NTULearn. You are expected to participate
in all seminar discussions and activities.

Absenteeism
Absence from class without a valid reason will affect your overall course grade. Valid reasons include falling
sick supported by a medical certificate and participation in NTU’s approved activities supported by an excuse
letter from the relevant bodies. If you miss a class, you must inform your instructor via email prior to the start
of the class.

I) Academic Integrity

Good academic work depends on honesty and ethical behaviour. The quality of your work as a student relies
on adhering to the principles of academic integrity and to the NTU Honour Code, a set of values shared by the
whole university community. Truth, Trust and Justice are at the core of NTU’s shared values. NTU takes
academic integrity seriously. Academic misconduct is regarded as a very serious offence by the university. It
is considered as an instance of violation of the NTU Honour Code which could warrant disciplinary actions
raging from failing the assignment, failing the course, suspension and to expulsion from the university.

As a student, it is important that you recognize your responsibilities in understanding and applying the principles
of academic integrity in all the work you do at NTU. Not knowing what is involved in maintaining academic
integrity does not excuse academic dishonesty. You should avoid participating in any forms of academic
dishonesty, including plagiarism, academic fraud, collusion and cheating. If you are uncertain of the definitions
of any of these terms, you should go to the academic integrity website for more information. Consult your
instructor if you need any clarification about the requirements of academic integrity in the course.

J) Course Instructors

Office Consultation
Instructor Phone Email
Location Hours
Dr Michelle Phang# S3-B1A-22 6316 8865 mphang@ntu.edu.sg By appointment
or via email
Ms Anne Chia - - annechia@ntu.edu.sg Via email
Ms Wee Chia Fong - - chiafong.wee@ntu.edu.sg Via email
Mr Yu Hang - - hyu015@e.ntu.edu.sg Via email
#
Course Coordinator

K) Planned Weekly Schedule

The readings and activities stated below are tentative and subject to change. Course coordinator or your
instructor reserves the right; at his/her sole discretion; to modify, change or assign activities or questions for in-
class discussion, presentation or assignments for the course or for his/her own seminar groups. NTULearn will
be used as the primary mode to provide updates, instructions and other learning materials relating to this
course. Students should check the AD2101 NTULearn main website, the respective AD2101 NTULearn
seminar group website as well as NTU email on a regular basis.

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Weekly Schedule
Seminars Topics Learning Outcomes Resources Activities

IMPORTANT
CONNECT is available for registration from Monday 13th January 2020.
DO NOT register for CONNECT if you are undecided about the choice of your course or seminar group. For information regarding the CONNECT platform and
steps for registration, please refer to Instruction for CONNECT Registration on AD2101 NTULearn main website.

Part I Cost Management and Cost Systems

Course Overview 1. Explain the objectives, scope, structure and AD2101 Course Course introduction
 Objectives, requirements and assessments of this course Outline
expectations 2. Discuss the pedagogical approach and CONNECT
instructor’s expectations NBG and - Video V1
Topic 1 Introduction to managerial 3. Discuss administration arrangements and SmartBook - Online Homework HW1
accounting form teams for group work Prologue (8:00am 13th Jan - 8:00pm
 What is managerial accounting? 4. Explain the differences between managerial Chapter 1 2nd Feb)
 Why does managerial accounting and financial accounting Appendix 1A - Self-Practice Questions
matter? 5. Discuss how managerial accounting fits into SP1
Seminar 1
 Perspectives beyond the numbers an organization’s structure to support
Commencing
 Cost concepts, cost classification managerial and strategic decisions Seminar
13th Jan
and cost analysis 6. Discuss the roles of managerial accounting in - Case discussion
 Presentation of costs in financial complementing various business - Learning activity
statements management perspectives
7. Explain various cost concepts, cost
classifications and cost behaviors
8. Analyze mixed costs and apply cost
estimation methods
9. Record cost flows in business and present
costing information in financial statements

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Nominate a team leader and confirm your team members with your instructor by Friday 24th January 2020.
Topic 2 Product and service
costing
 Cost management systems for
managerial purposes
 Design of costing systems
o Discrete process industry
o Continuous process industry
Seminar 2
o Service industry
Commencing
 Job costing, process costing and
20th Jan
hybrid costing
Topic 3 Overhead cost allocation
 Traditional costing
 Activity-based costing
 Activity-based management
Seminar 3
Commencing
27th Jan
* Chinese New Year (public holiday) on Monday 27th January 2020
IMPORTANT
1. Describe the basic costing systems and NBG and CONNECT
explain how they work SmartBook - Video V2
2. Recognize when to use a job costing system Chapter 3 - Online Homework HW2
or a process costing system Appendix 3A (8:00am 13th Jan - 8:00pm
3. Explain the need for a hybrid costing system Appendix 3B 2nd Feb)
and how it works - Self-Practice Questions
4. Compare different costing systems and SP2
discuss their fundamental distinctions
5. Track and record manufacturing costs using Seminar
job costing system - Case discussion
6. Record the flow of costs using job costing - Learning activity
system
7. Compute underapplied or overapplied
overhead cost
8. Adjust cost of goods sold and prepare
financial statements
1. Explain the potential effects of using reported NBG and CONNECT
product costs for decision making SmartBook - Video V3
2. Describe activity-based costing system and Chapter 5 - Online Homework HW3
how it differs from traditional costing system Appendix 5A (8:00am 20th Jan - 8:00pm
3. Explain the concepts of cost levels, cost 2nd Feb)
pools and cost drivers - Self-Practice Questions
4. Compute activity rates and assign costs to a SP3
cost object
5. Compute product and customer margins Seminar
using activity-based costing - Case discussion
6. Discuss how activity-based costing is used in - Learning activity
service industry
7. Discuss the use of activity-based cost
information to improve business operations
8. Discuss the limitations of activity-based
costing
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 Part II Planning, Control and Decision Making

IMPORTANT
Confirm your project with your instructor by Friday 7th February 2020.

Topic 4 Budgetary planning 1. Explain the role of budgets in overall NBG and CONNECT
 Strategic planning and management process SmartBook - Video V4
competitiveness 2. Discuss the importance of strategy and its Chapter 8 - Online Homework HW4
 Master budget role in master budgeting process (8:00am 27th Jan - 8:00pm
 Risk and uncertainty 3. Prepare a master budget and its supporting 9th Feb)
Seminar 4
 Behavioral implications schedules - Self-Practice Questions
Commencing
4. Discuss the interrelationships and the risk SP4
03rd Feb
and uncertainty in budgeting
5. Explain the importance of people in the Seminar
budgeting process - Case discussion
6. Discuss various behavioral issues in the - Learning activity
budgeting process

Topic 5 Flexible budgeting, 1. Distinguish between static budget and flexible NBG and CONNECT
standard costs and variance budget SmartBook - Video V5
analysis 2. Discuss the limitations of a static overhead Chapter 9 - Online Homework HW5
 Static budget and flexible budget budget and the advantages of a flexible Chapter 10 (8:00am 3rd Feb - 8:00pm
 Standard costing overhead budget Appendix 10A 16th Feb)
 Analysis of direct costs 3. Prepare a flexible overhead budget - Self-Practice Questions
Seminar 5
 Analysis of indirect costs 4. Describe how standard costs are set and SP5
Commencing
used
10th Feb
5. Discuss advantages and criticism of standard Seminar
costing - Case discussion
6. Prepare variance analysis and discuss why - Learning activity
variance analysis is important for managers
7. Determine the significance of variances
8. Investigate and interpret variances

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 Topic 6 Cost-volume-profit analysis 1. Determine the effects of different cost NBG and CONNECT
and segment reporting structures on sales volume, contribution SmartBook - Video V6
 The basics of CVP analysis margin and operating income Chapter 2 - Online Homework HW6
 Breakeven and target profit 2. Determine the breakeven point and sales Appendix 2A (8:00am 10th Feb - 8:00pm
 Cost structure and sales mix volume needed to achieve a desired target Chapter 4 23rd Feb)
 Variable and absorption costing profit Appendix 4A - Self-Practice Questions
 Segmented income statements 3. Compute margin of safety and degree of SP6
operating leverage and explain their
significance Seminar
Seminar 6
4. Compute and discuss the effects of shifts in - Case discussion
Commencing
sales mix on contribution margin and - Learning activity
17th Feb
breakeven point
5. Discuss how income taxes affect CVP
analysis
6. Discuss the assumptions and limitations of
CVP analysis
7. Discuss how variable costing differs from
absorption costing and reconcile their effects
on profitability
8. Prepare segmented financial statements

Topic 7 Differential analysis and
decision making
 Relevant costs and benefits
 Differential analysis
 Qualitative factors
 Theory of constraints
Seminar 7  Risk and legal issues
Commencing  Pricing decisions
24th Feb
1. Explain decision making process NBG and CONNECT
2. Identify relevant and irrelevant costs and SmartBook - Video V7
benefits in decision making process Chapter 6 - Online Homework HW7
3. Use differential analysis to analyze pricing, Appendix 6A (8:00am 17th Feb - 8:00pm
production and managerial decisions 01st Mar)
4. Identify and discuss the constraints in - Self-Practice Questions
decision making SP7
5. Discuss the importance of qualitative factors
in decision making Seminar
6. Discuss legal issues and risk relating to - Case discussion
decision making - Learning activity
7. Discuss influences and issues in pricing
decision
8. Set selling price and compute target cost for
a product or service

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 Recess
Commencing Recess Week
02nd Mar

Part III Contemporary Management Practices and Performance Measures

Topic 8 Contemporary management
practices
 Cost management, value creation
and quality management
 Just-in-time and life cycle
 Business sustainability
 Managerial accounting and
sustainable development
Seminar 8
Commencing
09th Mar
1. Explain the potential link between cost NTULearn CONNECT
reduction, value chain and total quality Learning Materials - Video V8
management  Topic 8
2. Identify the advantages and disadvantages of
just-in-time system eLearning
3. Explain the importance of life cycle analysis - Refer to NTULearn
in decision making
4. Explain why sustainability is of interest in
today’s business environment and how
stakeholders may influence sustainability
practices
5. Discuss tools and approaches towards
sustainability development and firm
performance
6. Discuss the implications and challenges in
recognizing and measuring economic,
environment and social impacts on
managerial decision making

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Post a pdf version of your project presentation slides and excel templates onto AD2101 NTULearn seminar group website by Friday 20th March 2020 at 12:00noon.
Topic 9 Performance measurement
in decentralized organizations
 Management control system
 Decentralization in organizations
and responsibility accounting
 Performance measures and
balanced scorecard
 Behavioral issues and conflicts
 Service department charges and
Seminar 9 segmented income statement
Commencing  Transfer pricing among business
16th Mar units
IMPORTANT
1. Explain the alignment of managerial and NBG and CONNECT
organizational interests SmartBook - Video V9
2. Discuss the importance of goal congruence Chapter 11 - Online Homework HW9
among business units and managers Appendix 11A (8:00am 09th Mar - 8:00pm
3. Discuss the relation between organization Appendix 11B 22nd Mar)
structure and responsibility centers - Self-Practice Questions
4. Discuss the advantages and disadvantages SP9
of centralization and decentralization
5. Compute and interpret performance Seminar
measures and discuss the needs for multiple - Case discussion
performance measures - Learning activity
6. Construct and use balanced scorecard
7. Apply service department charges and
prepare segmented income statement
8. Describe the purpose of transfer pricing and
apply general transfer pricing rule
9. Discuss factors and economic consequences
of multinational transfer pricing
10. Discuss behavioral issues and incentive
effects relating to performance measures and
transfer pricing
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 Part IV Application of Theory to Practice and Review

IMPORTANT
Each project presentation is 30 minutes, please be on time.

Seminar 10 Project presentation 1. Project presentations

Commencing 2. Q&A on practice and application
23rd Mar

Seminar 11 Project presentation 1. Project presentations

Commencing 2. Q&A on practice and application
30th Mar

Seminar 12 Project presentation 1. Project presentations

Commencing 2. Q&A on practice and application
06th Apr

Review 1. Course review to clarify fuzzy points All course materials Summary and feedback
Seminar 13
2. Summary and review of all course topics Review exam practice papers
Commencing
3. Understand final examination requirements
13th Apr
4. Clarify doubts before final examination

IMPORTANT
Project rubrics will be released on Monday 20th April 2020.

* Good Friday (public holiday) on Friday 10th April 2020

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