Knowing the drivers of corporate value is important for long-term and short-term decision making. The course starts discussing important long-term value drivers (like technological change, competition or customer preferences) and derives the need for more specific information for short-term decision making. We address problems arising whenever supporting goal congruent decision making needs very detailed information (e.g. for single products and services or for organizational subunits). Within this framework, we focus on the decision-facilitating role of management accounting and discuss widely accepted tools and techniques of generating and using information for decision making. Additionally, the course illustrates the decision-influencing role of information in the context of delegated decision-making.
Drivers of corporate value and decision making
Relating long-term and short term decision making
Cost drivers and cost behavior
Measuring, analyzing, and managing activity and product costs
Cost allocations and information quality
Costing systems and decision usefulness
Short-term decisions and the importance of constraints
Decentralized organizations and transfer prices
Lernergebnisse (Learning Outcomes):
Upon completion of this course, students will be able to
· explain how technological change, competition and globalization, and customer preferences can affect an organization and its information system.
· describe features of organizations that promote decisions to achieve organizational goals.
· explain the critical role played by management accounting in making planning decisions and controlling managers to create organizational value.
· identify cost drivers to explain cost behavior
· identify and measure opportunity costs for making planning decisions.
· identify activities of the organization related to the different products and services that it provides.
· use tools to derive the costs for single products or services.
· explain the role of allocating indirect costs and the impact on information quality.
· identify different types of production systems and corresponding costing systems.
· reflect the benefits and limitations of alternate costing systems for decision making
· explain why short-term decisions differ from strategic decisions.
· treat products as cost objects for the purpose of making product-mix and pricing decisions.
· describe the steps of the master-budgeting process.
· describe the steps of the capital-budgeting process.
· reflect the role of transfer pricing for delegated decision making.
· argue the decision facilitating and decision influencing role of information.
Students need to attend at least 80 % of the total amount of class contact hours.
· Self-guided reading; home assignments, quizzes
· Brief lectures by instructors
· Group work and discussions
· Midterm-exam and final exam
40 % Active participation in class (group work and discussions, management summary, presentations, tasks on the learning platform: clicker, checkbox, wiki)
20 % Midterm-exam
40 % Final-exam