Admas University

School of Postgraduate Studies

Course Outline
Course Title: Advanced Cost and Management Control
Course Code: ACFN 523Credit Hours: 3hrsPre request: None
Instructor: Ermias A. (PhD, ACCA), 2nd Semester 2021
Course Description
The course describes the cost functions and behaviors, C-V-P analysis under multi product
conditions and uncertainty, cost analysis for pricing decisions, profit centers approach for
decisions regarding transfer pricing and investment centers approach for determining ROI and
residual income.

Course Objective: The objective of the course is to equip the student with the cost and
management accounting tools and techniques for analyzing the cost behavior and its influence
on the operating performance of the organization for efficient decision-making.

Course Contents

Intro: Review on the Basics of Cost ad Management Accounting (Bridging the Syllabus)

Chapter One: Cost Behavior and Estimating Costs

1.1 Analysis of cost behavior

1.2 Account classification
1.3 Statistical analysis
1.4 Ordinary least squares regression
1.5 Statistical influence and prediction
1.6 Auto correlation
Chapter Two: Multi product C-V-P Analysis
2.1 Multi product B-E-P analysis
2.2 Multi product C-V-P analysis with: (i) Production constraints and (ii) Multiple Production
constraints
2.3 Multiple products, Multiple constraints and fixed costs
2.4 Multi period extension to C-V-P analysis
Chapter Three: C-V-P Analysis under Uncertainty

3.1 Uses of uncertainty models

3.2 Probability distribution of sales
3.3 Probability of break even
3.4 Multiple product C-V-P analysis under uncertainty
3.5 Uncertainty in price and cost parameters
Chapter Four: Cost Analysis and Pricing Decisions

4.1 Profit-maximizing pricing models

4.2 Full cost pricing-evaluation
4.3 Target ROI pricing and assets valuation
4.4 Cost-based pricing
4.5 Strategic Pricing for new products
Chapter Five: Profit Centers and Transfer Pricing

5.1 Profit as a performance measure

5.2 Profit Index

5.3 Common Revenues

5.4 Transfer pricing

5.5 Non-Profit measures of Performance

Chapter Six: Investment Centers

6.1 Relating Profits to assets employed

6.2 ROI and Residual Income
6.3 Accounting Vs. True Rate of Return
6.4 Capitalizing Vs. Expensing
6.5 Identifying Assets in Inventory Base
6.6 Cash Flow Accounting
 Teaching Methods

 Group discussion
 Seminar presentation
 Problem demonstration
 Debates and Discussions
 Simulations
 Book Review
 Industry visit/community-based activity
 Case studies

Assessment Methods

Individual presentations and written report during the semester 30%

Group work (includes presentations and written reports) 20%

Final exam 50%

Total 100%

Text Book

 Cost Management: A Strategic Emphasis / Edward J. Blocher, David E. Stout, Gary

Cokins., 5th ed. p.cm.
 Robert Kaplan “Advanced Management Accounting” Prentice Hall/India, New Delhi.
1988.
Reference Books:

 John Y.L.E. “Advances in Management Accounting Volume 14”, 2006

 Alnoor B. et al. “Management and Cost Accounting” 4th ed. 2008
 Larry M., Walther and Christopher J. Skousen ”Managerial and Cost Accounting, 2009
 John Y.L.E. “Advances in Management Accounting”, 2006
 Charless T. Horngren: “Cost Accounting A Managerial Emphasis” Prentice Hall, International Inc.
 Kaplan and Atkinson Advanced Management Accounting Prentice Hall International Inc.
 Management Accounting , Jerry J.W. Paul D1 Kimmel, 6thed, 2012

 Ray H. Garrison “Managerial Accounting” Irwin, Home wood IL. Boston.

 Charless T. Harngren: Introduction of Management Accounting “ Prentice Hall International, Inc.
 Financial and Managerial Accounting, Belverd, E.N and Marian, P 2011, USA.