Syllabus
International Business/Accounting
Management Accounting
EBC2059
Academic Year: 2023-2024
Course Period: 4
SBE Emergency Number: 1333
!Disclaimer! The information provided on code.unimaas.nl about the course was set up prior to the
coronavirus crisis. As a consequence of the crisis, course coordinators may be forced to change the
teaching and assessment methods used. The most up-to-date information about the
teaching/assessment method(s) will be available in this course syllabus.
School of Business and Economics
Bachelor
Academic year 2023-2024 Maastricht University School of Business and Economics
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Table of Contents
Introduction .......................................................................................................... 3
Course Objectives .................................................................................................. 5
Course Structure ................................................................................................... 6
Schedule and Deadlines.......................................................................................... 7
Resources............................................................................................................12
Assessment and Grading .......................................................................................13
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Introduction
This course is an advanced course in management accounting in the bachelor program.
Management accounting is the branch of accounting that focuses on collecting, analyzing,
and reporting of both financial and non-financial information, so that it can be used for
decision-making and control. Since management accounting plays a dominant role in the
planning and controlling activities undertaken by managers within the firm, a thorough
understanding of management accounting theory and techniques is a prerequisite for a
successful career.
The course starts with the fundamentals of profit planning (“the budget”), creating a link
between operational activities, cash requirements, and investment activities. The course
continues with addressing several tools that build on the profit plan and can fulfil the two
roles of management accounting: (1) decision-facilitating role, which relates to the
provision of information for decision making purposes; and (2) decision-influencing role,
which relates to the use of information for control purposes. The final part of the course
addresses tools that are relevant for providing information about and/or changing the key
inputs of the profit plan.
Position in the curriculum: Master curriculum
Further Master courses discuss how management can assure that the firm’s strategy will
be carried out both effectively and efficiently—for which management accounting
techniques are among the instruments available to management. The Master courses also
further study topics related to the role of accounting in the firm and you will, as such,
further develop state-of-the-art of management accounting techniques. As the business
world is changing at an ever-increasing speed, the Master courses are designed to discuss
the major role that accounting plays in the design and functioning of modern firms—
subjects that are at the center of contemporary academic and practical interest.
Position in the curriculum: Post master curriculum
After the Master program, you can take a specific post-graduate program that focuses on
qualifying you to become a Registered Auditor. There is a Dutch Postgraduate program as
well as an international post-graduate program to become a Registered Auditor.
Alternatively, you can take a program to become a Chartered Controller. The department
of Accounting and Information Management at Maastricht University offers a Dutch postgraduate program as well as an international post-graduate program. You can obtain these
qualifications by attending a part-time program whilst working in the field. At this postgraduate stage, links with the corporate world are very strong: the program is an integral
part of firms’ management and executive development; and executives of corporations sit
on the program’s supervisory board. Further information about all these programs can be
found on the website of the Department of Accounting and Information Management.
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Faculty
This course is organized by the Department of Accounting & Information Management. The
coordinator and faculty members involved in the course are:
-
Prof. dr. Frank Moers (Coordinator) (f.moers@maastrichtuniversity.nl)
-
Nico Bloumis, MSc (Lecturer) (n.bloumis@maastrichtuniversity.nl)
Social Media
We are excited to invite you to our social media channel for you to exchange your ideas
and ask questions about topics related to Accounting and Information Management. The
group is a mix of people from practice, academia and of course you, and can help you to
stay up-to-date about current trends in the industry, find relevant job opportunities, and
give you the possibility to contact experienced professionals in order to get hands-on
advice on your careers.
Please follow the link https://www.linkedin.com/groups/8839208 and request access to
the group.
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Course Objectives
The objective of this course is for students to further develop skills regarding the collection,
analysis, and reporting of both financial and non-financial information, and its use for
decision making and control. In doing so, the course focuses on a mix of theory and
practice. In terms of theory, we will make use of a textbook on management accounting
coupled with assignments and academic articles. In terms of practice, we will make
extensive use of cases so to mimic real-life management issues.
By the end of class, students should:
1. Have a grasp on the management accounting systems/techniques used by
managers for decision-making and control.
2. Be able to critically evaluate under which circumstances which tools are suitable
and what their consequences are.
3. Be able to apply the techniques.
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Course Structure
Course elements
In this course we attempt to provide a mix of theory and practice. First, we will make use
of a textbook, which contains the basic ingredients for the assignments, as well as
contemporary research in management accounting. Understanding this research is an
important part of academic training in the field of management accounting. Being able to
interpret the results from this research allows you furthermore to contribute to practical
control problems, which will cross your way in your later working experience. Second, we
will make use of cases, simulating management accounting practice.
The tutorial sessions, which take place on Tuesday and Friday, are dedicated to (1) the
discussion of the readings, (2) assignments, and/or (3) a case analysis. The
literature/assignment/case references and the tasks for each session are provided in this
syllabus. All relevant material and references are also on Canvas.
A number of tutorial sessions involve group presentations, either related to an academic
article or a case (see section Schedules and Deadlines). The division into groups as well
as the allocation of the groups to sessions is done by the coordinator and posted on Canvas.
The section Assessment and Grading provides more details about what is expected from
the group presentations.
Participation, attendance, and professionalism
It is required that every student carefully and thoroughly prepares the literature before
each class meeting and, more importantly, the assignments or case and case questions.
Such preparation allows for active class participation, which is instrumental to the success
of the tutorial session. In the course outline in section Schedule and Deadlines of this
syllabus, you will find a short introduction to each topic with discussion questions and/or a
specific assignments.
You are expected to be present at every session. If, however, special events prevent you
from participating in a session, you should indicate that to your tutor before the respective
session takes place (i.e., via e-mail to your tutor).
After you graduate, you will be expected to act professionally at all times at your work. We
expect the same professionalism in our class. Professionalism includes respect for others,
integrity, and personal responsibility. You should be present on time, turn off all non-classrelevant electronic devices when class starts, be respectful to your tutor and other students
in the class, and take responsibility for your own performance. It should go without saying
that we expect professionalism in all email and personal communication.
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Schedule and Deadlines
In this section, you will find an outline of the course (regularly check Canvas for updates).
Each session is structured around a specific theme. Again we stress here that it is of prime
importance that every student thoroughly prepares the readings and assignments/cases
for the dates mentioned in the program.
Week 1
Tuesday February 6th
Introduction to course and profit planning
In this first tutorial we will (1) introduce the course content and organization, and (2)
provide a discussion of the Cash-Profit-ROE Wheel, which is essential for the next
tutorial session and related case.
Friday February 9th
Budgeting – Building a profit plan
Planning is an important part of managing a business. While the end result is a budget,
planning has multiple purposes, only one of which is the creation of a budget. One other
purpose is to examine alternative strategies and examine the profit, return, and cash
consequences. Such an analysis is a critical input to managerial decision making.
Readings:
- Chapter 15 of Drury
Case:
- Cafes Monte Bianco
Week 2
Tuesday February 20th
Management control – Motivational issues I
While planning and creating a budget help in making decisions, it is important to
acknowledge that decision making is heavily affected by the motivation of the decision
maker. On the one hand, this implies that information provided by the management
accounting system might be ignored and/or inadequately used in decision making. On the
other hand, it also implies that the management accounting system might be used to
“steer” the motivation of the decision-maker. This latter aspect is the core of management
control.
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Readings:
- Chapter 16 of Drury
Assignments:
- IM16.1, IM16.9, and IM16.13
Friday February 23rd
Management control – Motivational Issues II
During this session, we will discuss three empirical articles related to the motivational
effects of a number of management accounting tools, including the use of budgets. Each
article will be presented by a group. See the section Assessment and Grading for what
is expected from these presentations.
Readings:
- Banker, Lee, Potter & Srinivasan (2000)  presentation by Group 1
- Fisher, Maines, Peffer & Sprinkle (2002)  presentation by Group 2
- Rankin, Schwartz & Young (2008)  presentation by Group 3
Week 3
Tuesday February 27th
Variance analysis I
Although creating a budget is essential for planning and coordinating activities, its
usefulness does not stop there. The budget is also the key benchmark for assessing how
things went after the budgeting period is over. The key tool here is variance analysis, which
provides information about where and why actual results deviate from the plan. Such
information is useful for subsequent decision making as well as for evaluating those who
are responsible for the budget.
Readings:
- Chapter 17 & 18 (only the “advanced reading”) of Drury
Assignments:
- 17.1, 17.6, 17.10, IM17.8, and IM18.4
Friday March 1st
Variance analysis II
During this session, group 1 will present their analysis of the case and facilitate the
subsequent discussion. See the section Assessment and Grading for what is expected
from this presentation.
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Case:
- Variance analysis in a basketball team
Week 4
Tuesday March 5th
Divisional performance measures and investments I
In a for-profit firm, the budget of a division is expressed in profit terms. However, profit
can be expressed in numerous ways, each of which has its own advantages and
disadvantages. More importantly, different measures of profit provide different incentives
for making decisions, including investment decisions.
Readings:
- Chapter 13 (recap of NPV), 19 & 20 of Drury
Assignments:
- IM19.3, IM19.5, IM19.6, IM20.1 (subquestion a), and IM20.5
Friday March 8th
Divisional performance measures and investments II
During this session, we will discuss three empirical articles related to the investment
consequences of different types of performance measures. Each article will be presented
by a group. See the section Assessment and Grading for what is expected from these
presentations.
Readings:
- Balachandran (2006)  presentation by Group 1
- Wulf (2007)  presentation by Group 2
- Church, Jiang, Kuang & Vitalis (2019)  presentation by Group 3
Week 5
Tuesday March 12th
Strategic performance management I
While most of the previous sessions focused on operational aspects, the previous session
highlights that the management accounting system has also an important strategic
component, both from a cost as well as a performance measurement perspective.
Readings:
- Chapter 21 & 22 (scan based on provided overview on Canvas) of Drury
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Assignments:
- IM21.1, IM21.4
- Target costing assignment (see Modules on Canvas)
Friday March 15th
Strategic performance management II
During this session, group 2 will present their analysis of the case and facilitate the
subsequent discussion. See the section Assessment and Grading for what is expected
from this presentation.
Case:
- Rebecca’s Coffee and Tea House
Week 6
Tuesday March 19th
Cost estimation I
The preparation of budgets, the production of performance reports, the calculation of
standard costs and the provision of relevant costs for pricing and other decisions all depend
on reliable estimates of costs and distinguishing between fixed and variable costs, at
different activity levels. Understanding cost behavior via the use of cost estimation
methods is therefore important.
Readings:
- Chapter 24 of Drury
Assignments:
- IM24.1, IM24.3, and IM24.7
- Regression analysis assignment (see Modules on Canvas)
Friday March 22nd
Cost estimation II
During this session, group 3 will present their analysis of the case and facilitate the
subsequent discussion. See the section Assessment and Grading for what is expected
from this presentation.
Case:
- Cost Estimation at Continental Airlines
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Week 7
Tuesday March 26th
Q&A
During this session, we offer you the opportunity to ask questions for exam preparation.
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Resources
Textbook
Information regarding the literature to be studied during this course can be found on
Canvas, as well in Section Course Schedule. As a basis, we use the following textbook:
Drury, C. Management and Cost Accounting. 11th edition (2021) available at
https://www.cengage.uk/shop/isbn/9781473773639
Articles
Below you find all the articles used throughout the course. You can find them via the links.
Note that for most of the articles you have to first sign in with your Maastricht University
account.
Balachandran, S. V. (2006). How does residual income affect investment? The role of prior
performance measures. Management Science, 52(3), 383-394.
Banker, R. D., Lee, S. Y., Potter, G., & Srinivasan, D. (2000). An empirical analysis of
continuing improvements following the implementation of a performance-based
compensation plan. Journal of Accounting and Economics, 30(3), 315-350.
Church, B. K., Jiang, W., Kuang, X., & Vitalis, A. (2019). A dollar for a tree or a tree for a
dollar? The behavioral effects of measurement basis on managers' CSR investment
decision. The Accounting Review, 94(5), 117-137.
Fisher, J. G., Maines, L. A., Peffer, S. A., & Sprinkle, G. B. (2002). Using budgets for
performance evaluation: Effects of resource allocation and horizontal information
asymmetry on budget proposals, budget slack, and performance. The Accounting
Review, 77(4), 847-865.
Rankin, F. W., Schwartz, S. T., & Young, R. A. (2008). The effect of honesty and superior
authority on budget proposals. The Accounting Review, 83(4), 1083-1099.
Wulf, J. (2007). Authority, risk, and performance incentives: evidence from division
manager positions inside firms. The Journal of Industrial Economics, 55(1), 169196.
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Assessment and Grading
Course Objectives
Assessment
1
2
Presentation Article
X
X
Presentation Case
X
X
Hand-in Case
3
X
Final exam
X
X
X
Details
Assessment
Weight
Requirement
Individual/
Formative/
group
summative
Presentation
Article
10%
Group
Formative
Presentation
Case
15%
Group
Formative
Hand-in Case
25%
Group
Formative
Individual
Summative
Final Exam
50%
Grade has to
be ≥5.5
Resit
Resit exam
Presentation Article
The group article presentation will be assessed along two dimensions:
1. Content of the presentation
a. Research question
b. Theoretical background and hypotheses
c. Findings and implications
d. Relation between the article and textbook/assignments/real-life examples
2. Form of the presentation
a. Structure of presentation clear to follow
b. Enthusiasm and creativity of presentation
c. Clear and convincing style of presenting
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Presentation Case
The group case presentation will be assessed along two dimensions:
1. Content of the presentation
a. Identified and tackled the main problems
b. Thorough, clear and logic case analysis
c. Clear and well-defined line of argumentation
d. Accounting knowledge and techniques correctly applied
e. Clear recommendations/solutions presented that follow from analyses
f. Critical reflection of solution
g. Answers to questions
2. Form of the presentation
a. Structure of presentation clear to follow
b. Enthusiasm and creativity of presentation
c. Clear and convincing style of presenting
Hand-in Case
The group case report should not be more than six (6) double-spaced pages (excluding
title page and appendices) and is due March 28th at 23.59hrs. Papers handed in after this
deadline are not accepted and thus graded as a 0.0 (i.e., zero). You can submit the report
via canvas. The group case report will be assessed along three dimensions:
1. Case analyses and solution in the paper
a. Identified and tackled the main problems
b. Thorough, clear and logic case analysis
c. Clear and well-defined line of argumentation
d. Accounting knowledge and techniques correctly applied
e. Clear recommendations/solutions presented that follow from analyses
f. Critical reflection of solution
2. Role of accounting
a. Good description of the role of accounting/the accountant in the case
b. Critically evaluate the role of accounting/the accountant in the case
3. Form of the paper
a. Clear intro, body, and conclusion
b. Clear structure of the paper across and within the different sections
c. Correct references provided
d. Correct use of grammar, no spelling mistakes and well taken care of layout
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Final Exam
The course will be concluded by a final exam. The final exam will be graded on a scale from
1 to 10. You will need a grade of at least 5.5 in order to pass the final exam.
Passing the final exam is a necessary condition for passing the course! In other words, for
passing this course you need a minimum score of 5.5 for the final exam as well as a
minimum 5.5 overall score.
Re-sit
If you do not pass the final exam there will be an opportunity to participate in the reexamination for the final exam.
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