Cost Management [ LLSMG2055 ]

To be initiated into the principles and concepts of financial accounting.

Coordinated series of topics consisting of:
1. Introduction to management control
2. Cost accumulation for inventory valuation and profit measurement
3. Information for decision-making
4. Information for planning, control and performance measurement
5. Strategic management control

The course objective is to provide students with fundamental insights into the core management control principles. Based on a comprehensive understanding of these principles, students will be technically able (i) to evaluate the income effects of alternative cost accumulation systems, (ii) to help managers make sound decisions, (iii) to implement those decisions through control procedures, and (iv) to ensure the global coherence between control procedures and the business strategy. Therefore, this course is concerned with both cost accounting and strategic management.In addition, the course aims to enrich students' management control language, and hence to develop competences of communication.

Written exam.

The content of the course includes five parts.

Part 1. Introduction to management control

-        Differences between financial and managerial accounting

-        Vocabulary and concepts of management control professionals

Part 2. Cost accumulation for inventory valuation and profit measurement

-        Job costing system

-        Process costing system

-        Activity-based costing system

-        Income effects of alternative cost accumulation systems

Part 3. Information for decision-making

-        Cost-Volume-Profit (CVP) analysis

-        Measuring relevant costs and revenues

Part 4. Information for planning, control and performance measurement

-        Budgeting process

-        Standard costing and variance analysis

Part 5. Strategic management controlThe course combines, on the one hand, theoretical explanations and practical exercises and, on the other hand, visiting professionals' presentations. These presentations aim to initiate students into some pragmatic aspects of management control and to create and feed debates on management control issues faced by professionals today.

Drury, C. (2013). Management Accounting for Business. Fifth ed. Cengage Learning.

De Rongé, Y. (2013). Comptabilité de gestion. Troisième ed. Edition De Boeck.

Lecturer's PowerPoint presentations will be available on icampus (pdf format).