National University of Singapore
Department of Finance and Accounting
ACC3602: Managerial Planning and Control
Semester I, 2013/2014
Tentative Outline
1. Information on Instructor
Instructor: Associate Professor Neale O’Connor
Prerequisite: ACC2002 Managerial Accounting
2. Course Description and Objectives
One of the primary functions of managerial accounting is control. Control is a closed loop consisting of
setting goals, measuring results and taking corrective actions if necessary. Firms exercise control by
planning for the long term and budgeting for the short term, monitoring various parts of an organization
to determine whether the organizational goals are being attained, and taking actions if necessary to
bring the organization back "in control." The course examines various means by which control can be
exercised and the types of accounting information that allow for such means of control. Specific topics
examined include the nature of control, responsibility centers, economic value added, transfer pricing,
strategic planning, budgeting, performance evaluation systems, executive compensation and the
contingency approach to planning and control.
The course is conducted by way of formal lectures and case discussions. The case approach is
adopted to give the students a sense of how control is exercised in the "real world."
By the end of this course, students should be able to:
1. Accomplish all the detailed learning objectives for each seminar (please refer to the learning
objectives that are listed in each seminar outline).
2. Explain the answers to all multiple choice questions and class exercises covered during the course.
3. Demonstrate teamwork and case study analysis skills.
4. Demonstrate the ability to think critically and creatively in order to analyze and solve problems.
5. Analyze the effect of various factors on management control problems in enterprises and effectively
communicate the results of their analysis.
Textbook:
Kenneth A. Merchant & Wim A. Van der Stede, Management Control Systems: Performance
Measurement, Evaluation and Incentives, Third edition, Pearson Publishing, 2012
3. Teaching and Learning Activities
The course content will combine the three basic components: Theory, Case study and Simulation.
These three components attempt to substitute for real world experience so as to best prepare you for
your real world experience. Most undergraduate courses comprise theory and case study methods, but
this is one of the few courses (in Singapore) that include simulation method, which allows students to
test their learning in a model of a typical business.

In-class lectures/discussions: sometimes discussion questions are raised by the lecturer. Students
are encouraged to participate in discussions and share opinions with their peers. These
discussions encourage students to think more for certain arguable topics.

Concept map: at the end of some sessions, the lecturer use concept maps to provide an overview
of the various topics covered and to demonstrate the inter-chapter links.
 Tutorials normally feature students-led discussions and presentations. For this module, each tutorial
features two students’ teams taking turns to present their analyses of the same case, with each
tutorial/week featuring a different case (see the class schedule below). There will be 16-17 teams in
each section. Given the number of cases, each team is expected to present one case during the
course of the module.
 Members of the class who do not present in any given week are advised not to “sit back” and “enjoy
the view.” They’re required to familiarize themselves with the case assigned, and critique and ask
questions of the presenting student(s). The quality and frequency of such questioning in part
determines the grade for class participation. More importantly, the case materials WILL be included
in the final exam.
Course assessment
The course grade will be based on the following:
Components
Student presentations
Class participation in seminars
In-class quizzes (best 5 of 7)
Final exam
Total
%
15%
15%
20%
50%
100%
Individual
Group
√
√
√
√
Assessment Plan
Learning Objective
Accomplish all the detailed learning objectives for
each seminar
Assessment Method
Quizes
Final exam
Explain the answers to all multiple choice questions
and class exercises covered during the course.
Class participation
Quizes
Final exam
Demonstrate teamwork and case study analysis Student presentations
skills
Demonstrate the ability to think critically and
creatively in order to analyze and solve problems
Class participation
Final exam
Analyze the effect of various factors on
management control problems in enterprises and
effectively communicate the results of their
analysis.
Student presentations
Final exam
2
Assessment
Method
Weight
ing (in
%)
Due Date
Details
Student
presentations
15%
Throughout
semester
The purpose of the presentations is for students to develop their
speaking and presentation skills within the management planning and
control context. The presentation topics include real Asian companies
which have been in the news. The presentation materials are taken
from case studies and research articles supplied by O’Connor and the
textbook.
The presentations should last 15 minutes with 5 minutes at the end for
Q&A. In the Q&A session, non-presenting students are expected to
raise questions on the presented materials and/or discuss issues
related to the seminar topic. The quality of questions, comments and
suggestions raised by non-presenting students will be assessed as part
of their class participation mark.
In the 15-minute group presentation, the group needs to present a brief
summary of the case background, the case issues, the group’s
solutions to the case and lessons learned. At the end of the
presentation, please submit all your presentation materials/notes for
grading.
The student teams’ job consists of two parts: Each is required to do:
 Written report on the case which has two parts – part one
summary (1.5 line spaced, 11-point font, and no more than two
pages), part two mind map/concept map (one page)
 Verbal presentation to the class.
Lectures and
discussions Attendance
and
Participation
15%
Throughout
semester
Good performance in participation reflects excellent preparation, good
critical thinking, listening, and communication skills. Most importantly, it
involves an eagerness to share one’s thoughts and ideas. It takes much
courage to subject one’s thoughts to others’ scrutiny and challenge but
the consequential learning and confidence gained are tremendous and
invaluable. We value both the frequency and quality of participation.
General Guidelines for Participation in Class:
Good participation grades are assigned to students who:
- Ask insightful, penetrating questions
- Push the discussion of the case to a higher, more sophisticated level
- Help other students and myself understand, in a constructive manner,
that some of the arguments that have been voiced are somehow flawed
or incomplete.
Poor participation grades are assigned to students who:
- Rarely talk
- Skip classes
- Make irrelevant, shallow comments
- Are unprepared when they are called on.
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In-class
quizzes
20%
Throughout
semester
Before coming to class each student must prepare by reading the
student presentations and other assigned reading materials (which
include the textbook and the readings). To monitor the quality of
students’ preparation, the instructor will give regular in-class quizzes.
The student’s best five scores from these in-class quizzes will
contribute 20% of the overall grade. We will count only the best five
scores because students will inevitably miss one or two classes. There
are seven quizzes in total (see the course schedule).
Final Exam
50%
End of
semester
The final exam will be closed-book and contributes 50% of your overall
grade. It consists of a mix of multiple choice questions and written
questions. The final exam lasts for 2 hours. There will be fewer MC
questions in the final exam (further details on the respective weighting
will be given out nearer the exam date). Students will be tested on their
understanding of key management control concepts, framework and
methodologies, and the ability to address issues and/or solve
problems. Current developments and events reported in the press,
business periodicals and professional journals are likely to be covered,
including those that are discussed in the student presentations. The
time and venue of the final exam will be announced later.
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Presentations
In preparing the presentation slides, you will need to think creatively and do independent research
beyond the standard textbook material. If you get stuck, you can come during office hours to get help
from the instructor. However, the marks you obtain will reflect how much help the instructor has
needed to give you.
The presentation contributes 15% to the student’s overall grade: 5% of this is assessed by fellow
students; the remaining 10% is assessed by the instructor.
The assessment criteria include the following:
 Content (did the presentation comprehensively cover the assigned questions?; were the
arguments presented logically and with intelligent reasoning?; did the presentation show
evidence of independent research and creative thinking?; how effective were the visual aids?)
 Delivery (did the presenters speak clearly with appropriate pronunciation & grammar?; did the
presenters convey a strong interest in the subject matter with enthusiastic and confident
delivery?; did the presenters speak without constantly referring to notes?; did the presenters
effectively respond to student queries during the Q&A session?)
 Task management (did the presentation finish on time?; were the presenters able to simulate
audience interaction?).
The above criteria will be assessed by the instructor using the following rubric:
Below
average
Good
Excellent
1. Did the presentation comprehensively cover the assigned
questions?
2. Were the arguments presented logically and with
intelligent reasoning?
3. Did the presentation show evidence of independent
research and creative thinking?
4. How effective were the visual aids?
5. Did the presenters speak clearly with appropriate
pronunciation & grammar?
6. Did the presenters convey a strong interest in the subject
matter with enthusiastic and confident delivery?
7. Did the presenters speak without constantly referring to
notes?
8. Did the presenters effectively respond to student queries
during the Q&A session?
9. Did the presentation finish on time?
10. Were the presenters able to stimulate audience
interaction?
Please email your presentation slides to the instructor by 8pm on the evening of the day prior to your
presentation.
The presentations should last 15 minutes with 5 minutes at the end for Q&A. In the Q&A session, nonpresenting students are expected to raise questions on the presented materials and/or discuss issues
related to the seminar topic.
The quality of questions, comments and suggestions raised by non-presenting students will be
assessed as part of their class participation mark. The instructor reserves the right to include a topic
from the student presentations in the final exam. So, when you are not presenting, you have strong
incentives to read the materials and prepare answers before coming to class and to contribute to the
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class discussion. Failure to prepare adequately for the presentations will mean not only that you lose
participation marks but also that you are likely to perform worse in the final exam.
Academic integrity
Good academic work depends on honesty and ethical behavior. The quality of your work as a student
relies on adhering to the principles of academic integrity and to a set of values shared by the whole
university community. As a student, it is important that you recognize your responsibilities in
understanding and applying the principles of academic integrity in all the work you do at NUS. Not
knowing what is involved in maintaining academic integrity does not excuse academic dishonesty. You
need to actively equip yourself with strategies to avoid all forms of academic dishonesty, including
plagiarism, academic fraud, collusion and cheating.
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Course schedule
Seminar
#1
#2
#3
#4
#5
#6
#7
#8
#9
#10
#11
#12
#13
Date
Topic
Student Presentations
Week 1
(Aug 12-16)
Week 1
(Aug 12-16)
Week 2
(Aug 19-23)
Week 2
(Aug 19-23)
1. Course overview and the concept of
management control systems
1. How to discuss a case
n/a
2. Results Controls
n/a
2. Results Controls
n/a
Quiz #1
Week 3
(Aug 26-30)
Week 3
(Aug 26-30)
3. Action, Personal and Cultural Controls
#1 Loctite Company de Mexico, S.A. de C.V.
#2 Puente Hills Toyota (MVS, p.61) – Performance
Measurement and Incentives in a car dealership
n/a
Quiz #2
3. Action, Personal and Cultural Controls
Week 4
(Sep 2-6)
Week 4
(Sep 2-6)
4. MCS Tightness
Week 5
(Sep9-13)
Week 5
(Sep9-13)
5.
6.
5.
6.
Week 6
(Sep 16-20)
Week 6
(Sep 16-20)
Week 7
(Sep 23-27)
4. MCS Tightness
MCS Costs
Designing and Evaluating MCS
MCS Costs
Designing and Evaluating MCS
7. Financial Responsibility Centers
7. Financial Responsibility Centers
RECESS WEEK
In-class
quiz
n/a
#3 (1-ACRC) Premiumsoft – Start-up – managing
creative people
#4 (2-ACRC) EU Design - Start-up Firm Case
#5 Alcon Laboratories, Inc (MVS, p.61)
n/a
#6 A Breakdown in the Enforcement of Management
Control (MVS, p. 181)
#7 Controls at the Bellagio Casino Resort (MVS, p. 134)
n/a
#8 Sunshine Fashion: Fraud, Theft, and Misbehavior
Among Employees (MVS, p. 199)
#9 Fit Food, Inc (MVS, p. 199)
Quiz #3
Quiz #4
#14
#15
#16
#17
#18
#19
#20
#21
#22
#23
#24
#25
Week 8
(Sep 30- Oct 4)
Week 8
(Sep 30- Oct 4)
Week 9
(Oct 7-11)
Week 9
(Oct 7-11)
Week 10
(Oct 14-18)
Week 10
(Oct 14-18)
Week 11
(Oct 21-25)
Week 11
(Oct 21-25)
Week 12
(Oct 28- Nov 1)
Week 12
(Oct 28- Nov 1)
Week 13
(Nov 4-8)
Week 13
(Nov 4-8)
8. Planning and Budgeting
n/a
8. Planning and Budgeting
#10 Zumwald AG (MVS, p. 293)
Transfer Pricing
#11 Global Investors, Inc (MVS, 295)
Transfer Pricing
n/a
10. Financial Performance Measures and
Their Effects
10. Financial Performance Measures and
Their Effects
Strategy-based Responsibility Centers
Strategy-based Responsibility Centers
Quiz #5
#12 VisuSon, Inc.: Business Stress Testing (MVS, p.355)
n/a
Strategy-based Responsibility Centers
#13 Industrial Electronics, Inc
#14 Haengbok Bancorp (MVS, p.437)
n/a
Strategy-based Responsibility Centers
#15 Christie, Andrew A. & Joye, Marc P. & Watts, Ross L.,
Quiz #6
2003. "Decentralization of the firm: theory and evidence,"
Journal of Corporate Finance, Elsevier, vol. 9(1), pages 3-36,
January.
Sentra Software Game
#16(3-PUB Case Study) - O'Connor, N. G. and Feng, E.,
"Using the balanced scorecard to manage intangible
assets in a Sino-foreign joint venture". Australian
Accounting Review, 2005, 15, 2.
n/a
Sentra Software Game Debrief
n/a
Conclusion and Integration
n/a
n/a
n/a
Quiz #7
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