To develop knowledge and skills in the application of management accounting techniques to quantitative and qualitative information for planning, decision-making, performance evaluation, and control
Course Outcome (COs):
Course |
Learning outcome (at course level) |
Learning and teaching strategies |
Assessment Strategies |
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Paper Code |
Paper Title |
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AAF 211 |
Performance Management |
Upon successful completion of this course, the student will be able to: CO 41: Analyze different management accounting techniques like Activity-based costing, life cycle costing, target costing, throughput accounting environmental management accounting in different business contexts to effectively manage and use resources CO 42: Calculate the relevant cost. Perform cost volume profit analysis through formulae and charts. Interpret limiting factors and solve multiple scarce resource problems. Explain the pricing strategy and understand decision-making under uncertainty and risk. CO 43: Prepare various types of budgets. Perform quantitative analysis in budgeting. Estimate the learning effect and apply this to a budgetary problem CO 44: Calculate from information supplied, various types of variances and explain possible causes, including possible interrelationships between them. CO 45: Calculate from given data, and interpret financial performance indicators (FPIs) for profitability, liquidity, and risk in both manufacturing and service businesses, and suggest methods for improving these measures. Explain and interpret the Balanced Scorecard and its elements as well as the Building Block model. Comment on the problems, using simple examples, of having multiple objectives in not-for-profit organizations and the public sector. Understand the role of information systems in organizations and the need for the security of highly confidential information that is not for external consumption. Identify and discuss privacy and security issues. |
Approach in teaching: Interactive Lectures, Discussion, Tutorials, assignments. Learning activities for the students: Self learning assignments, Effective questions, Giving tasks, Solving numerical problems
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Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Individual projects |
Meaning, Material mix and yield variances-causes, issues involved in changing material mix e.g. cost, quality and performance measurement issues, relationship of the material usage variance with the material mix and yield variances, methods of controlling production processes.
Sales mix and quantity variances-causes, relationship of the Sales volume variances with the sales mix and quantity variances.
Planning and operational variances- Calculation of a revised budget, factors to revise an original budget, explain planning and operational variances for: sales, including market size and market share; materials; labour, including the effect of the learning curve.
Performance analysis and Behavioral aspects- variance analysis, factors influencing behavior, effect of variances on staff motivation and action, JIT and TQM, behavioural problems resulting from using standard costs in rapidly changing environments.
Performance management information,
Sources of management information Management reports,
Performance analysis in private sector organizations
Divisional performance and transfer pricing
Performance analysis in not-for-profit organizations and the public Sector,
External considerations and behavioral aspects