Accounting for strategy BA3230

Pre-requisites

• Accounting for Management (BA1020)
• Strategic Management (BA2070)

Topics covered

• The domain of strategy, the different views on strategy, and how to analyse the environment.
• Traditional management accounting systems and the various roles they perform in organisations
• An introduction to the concept of strategic management accounting and discussions on some empirical research in the area of strategic management accounting.
• Consider the meaning of ABC and the rationale for its development. The topic will focus mainly on the theoretical issues of ABC. 
• The techniques or mechanics of ABC.
• This topic will identify and discuss the rationale for ABM (activity-based management) and will examine some empirical research on the application of both ABM and ABC.
• Introduction to the analysis of the profitability of customers or customer groups.
• Value chain analysis as a competitive tool
• The supply chain management concept and will identify the role of accounting information in supply chain management decisions.
• The role of TQM in achieving competitive advantage. 
• Examine both target costing and kaizen costing. 
• The concept of the Just-in-Time (JIT) system and we will be looking at the relationship between JIT and management accounting.
• An overview and critique of traditional performance measurement systems and examine the need and types of non-financial performance measures.
• The balanced scorecard concept.
•  The role of benchmarking in organisations and the role of management accounting in benchmarking decisions.
• The concept of total life-cycle costing which is the technique used in calculating the cost of the product over its life.
• The theory of constraints and the throughput accounting philosophy.
• How the analyses of capital investment projects can be broadened to include strategic issues.

Learning outcomes

By the end of this module students should be able to:

• Critically evaluate current and potential strategies for organisational units
• Critically evaluate different theoretical perspectives on strategy making in organisations
• Discuss and critically evaluate management accounting systems
• Critically analyse the changes in the business environment and understand the reasons for the recent upsurge in interest in strategic management accounting
• Critically synthesise the theory and practical application of management accounting systems in supporting strategic decisions
• Design and develop systems for management for strategic decisions, including those for different time-scales in a climate of change.

Assessment

This module is assessed by a three hour unseen written examination.

Essential reading

• Management and Cost Accounting (Drury C)