THE CHINESE UNIVERSITY OF HONG KONG
School of Accountancy
ACCT 4121
Strategic Management Accounting
(Fall Term, 2015-2016 / Tuesdays, Wu Ho Man Yuen Bldg. Room 407)
INSTRUCTOR
Name:
Office:
Telephone:
Email:
Office hour:
Professor George Yong Yang
Room 1014, 10/F, Cheng Yu Tung Building
3943 7832
yyong@cuhk.edu.hk
ANY TIME by appointment
TEACHING ASSISTANT
Name:
Mr. Katy Choi
Office Location:
Room 1049, 10/F, Cheng Yu Tung Building
Telephone:
3943 7644
Email:
katycck@baf.cuhk.edu.hk
Office hour:
Monday to Friday 10:00 a.m. to 5:00 p.m.
COURSE OBJECTIVE
This is an advanced course in management accounting. It examines the role of management accounting systems in
strategy formation and implementation and as a potential source of sustainable competitive advantage. The course
will provide students with practical exposure to issues involved in the design and implementation of these systems.
It will also explore the structures, tools and procedures available to managers to help motivate, evaluate and reward
members of the organization.
LEARNING OUTCOMES
On completion of this course, students are expected to be able to:
1. demonstrate a good understanding of basic knowledge on management control systems;
2. apply the knowledge learned in the course to analyze and evaluate the management control systems of various
entities; and
3. communicate their analysis and findings in an effective way.
LEARNING ACTIVITIES
Lecture (including in-class
discussion / presentation)
(hr)
in / out class
3
0
COURSE ASSESSMENT
Task nature
Participation†
Leading discussion (in group)^
Midterm exam*
Final exam *
Lab / tutorial
(hr)
in / out class
0
Project / Case discussion
(hr)
in / out class
0
0
3
Expected out-of-class
activities (hrs)
in / out class
0
4
Weight
10%
20%
30%
40%
†: Assessed based on 1) class attendance; 2) punctuality to attend classes; 3) answering or raising questions in classes; and 4)
observation of classroom conduct rules.
^: Each group will be assigned one case that will be discussed in the class. The assigned group is supposed to lead the discussion
when the case is being discussed.
*: No make-up exams will be offered.
Lecture
1. Classroom discussions will be held to practice students’ critical thinking ability.
2. Students are encouraged/required to raise questions, participate in discussions, and share ideas with peers
1
Self-study
1. The minimum required outside-class study time is six hours per week (more time is needed if English and general
management backgrounds are not good).
2. Students are encouraged to read extra articles and books related to strategic management accounting.
Assignments/Cases
There is one case-discussion leading task to be done in groups with each group consisting of no more than 5 people.
Please form your group by the end of the first class. You will select one of the cases in the first class. The first
group’s discussion-leading task will be on the 2nd week (Jan 13th or 14th).
COURSE SCHEDULE
Week (Tue)
Topics
Readings
Introduction / Results control
Case #1: Houston Fearless 76, Inc.
Chap 1, 2
Action, personnel, and cultural control
Case #2: The Lincoln Electric Company
Chap 3
Week 4: Sep 29
Tightness of control; Control costs
Case #3: Bellagio Casino Resort;
Case #4: Fit Food, Inc.
Chap 4, 5
Week 5: Oct 6
MCS design and evaluation
Case #5: AirTex Aviation
Chap 6
Week 6: Oct 13
Financial responsibility centers
Case #6: Zumwald
Chap 7
Week 7: Oct 20
Midterm Exam (In-class)
Week 8: Oct 27
Planning and budgeting
Case #7: Patagonia, Inc.
Case #8: Beyond budgeting
Chap 8
Week 9: Nov 3
Incentive systems
Case #9: John Lewis
Chap 9
Financial performance measures and myopia
Case #10: Airplane depreciation
Case #11 Statoil
Chap 10, 11
MCS in the presence of uncontrollable factors
Case #12: Olympic car wash
Chap 12
Week 1: Sep 8
Week 2: Sep 15
Week 3: Sep 22
Week 10: Nov 10
Week 11: Nov 17
Week 12: Nov 24
Week 13: Dec 2
Final Exam (In-class)
RECOMMENDED LEARNING RESOURCES
1. Required textbook: Merchant K. A. and Van der Stede W. A. “Management Control Systems” 3rd Edition. Prentice
Hall.
2. Cases and articles provided in class to facilitate students’ understanding of relevant concepts and techniques.
ACADEMIC HONESTY AND PLAGIARISM
The Chinese University of Hong Kong places very high importance on honesty in academic work submitted by
students, and adopts a policy of zero tolerance on cheating and plagiarism. Any related offence will lead to disciplinary
action including termination of studies at the University. Attention is drawn to University policy and regulations on
honesty in academic work, and to the disciplinary guidelines and procedures applicable to breaches of such policy and
regulations. See http://www.cuhk.edu.hk/policy/academichonesty/ for details.
2