Riyadh Philanthropic Society for Science
‫مؤسسة الرياض الخيرية للعلوم‬
Prince Sultan University
‫جامعة األمير سلطان‬
Dept. of Finance, Marketing and Accounting
‫قسم العلوم املالية والتسويق و احملاسبة‬
Course Syllabus
ACC 431 Advanced Managerial Accounting Credit: 3(3,0,0)
Semester Commencement w.e.f.26, Jnauary 2014
Instructor
: O.V.A.Faizal
Office
# A - 254
Phone
# 4948539
E-mail
: ovafaizal@fnm.psu.edu.sa
Office Hours : See the Working Schedule affixed on my office door.
Course Description and Objectives
This is an advanced course that addresses issues related to the production and reporting of
accounting information for managerial purposes.Discussion covers issues such as short and
long-term decision making, financial and operating control, methods to face
competition.,compensation issues, and management accounting control system design.. Upon
completion, the course is expected to realize the following specific objectives.

To provide the student with a working knowledge of the managerial accounting tools
for decision making.
 To enhance the students’problem solving aptitude.
 To provide the student additional training in generating accounting information for
managerial use.
 To enhance the students’ skills to face real life issues in the managerial accounting
context.
Text Required
Anthony A.Atkinson, Robert S.Kaplan, Ella Mae Matsumura and S.Mark Young,
Management Accounting, (Latest edition) Prentice-Hall Inc.
Joseph A.Maciariello and Calvin J.Kirby, Management Control Systems (Latest edition).
Prentice-Hall Inc.
Supplemetary Materials:
William Roteh,Brandt R.Allen and C.Ray Smith, Cases In Management Accounting
Control Systems, (Latest edition) . Prentice Hall Inc
‫ الرايض‬66899 .‫ب‬.‫ ص‬- 0108944 : ‫ فاكس‬- 944 ‫ حتويلة‬0108084 / 0108444 : ‫هاتف‬
44186
P.O. Box No. 66833, Riyadh - 11586, Tel. No. 454-8011, 454-8489 - Fax No. 4548317
Riyadh Philanthropic Society for Science
‫مؤسسة الرياض الخيرية للعلوم‬
Prince Sultan University
‫جامعة األمير سلطان‬
‫قسم العلوم املالية والتسويق و احملاسبة‬
Dept. of Finance, Marketing and Accounting
Grading
Your grade will be based on the following:
Quizzes
First Major Exam
Second Major Exam
Final Exam
Assignments
Class-Participation/ & attendance
10%
20%
20%
40%
5%
5%
Class participation means making meaningful contributions and showing evidence of
preparation during the discussion of the issues. You may be a proficient problem solver, but
if you are unable to communicate with your peers about possible solutions, your abilities will
never become apparent, either in this class or in any other setting. On the other hand even if
you are very good at communication, you must be able to back up your assertions with
reliable evidence and logic. Having the wrong numbers or an incorrect analysis may not be
detrimental to your grade provided that you have reasonable support for your assertions.
Assignments must be completed by the due date. You should and make the required effort to
answer every question, as well as to develop a good understanding of the issues involved.
Preparing yourself for the coming lectures and active class participation are essential to your
learning process. Case Studies given to you would be of the companies functioning in the
real marketplace. Solving them would require you to obtain information from various
sources including the internet and would help you to follow a research oriented approach to
your learning. You are encouraged to seek guidance from your course incharge regarding the
cases.
Exams will be structured to allow you to apply what you have learned to realistic settings.
Since accounting by its nature is cumulative learning, each topic builds on all previously
acquired knowledge of the subject. Therefore, absence from class can be extremely costly
and it would not let you develop good understanding of the issues.
DN and attendance regulations
DN wil be given to the students who are absent for 16 hours or more (whether excused or
unexcused) during the semester.Attendance will be taken 5 minutes after the start time of the
class .Any student who joins the class later will be allowed to attend the lecture but no
attendence will be granted to him.
Please note the following instructions:
a.
b.
c.
d.
Read the assigned material before class meetings.
Do not miss any class.
Pay attention to details.
Ask questions and participate in discussions.
‫ الرايض‬66899 .‫ب‬.‫ ص‬- 0108944 : ‫ فاكس‬- 944 ‫ حتويلة‬0108084 / 0108444 : ‫هاتف‬
44186
P.O. Box No. 66833, Riyadh - 11586, Tel. No. 454-8011, 454-8489 - Fax No. 4548317
Riyadh Philanthropic Society for Science
‫مؤسسة الرياض الخيرية للعلوم‬
Prince Sultan University
‫جامعة األمير سلطان‬
Dept. of Finance, Marketing and Accounting
‫قسم العلوم املالية والتسويق و احملاسبة‬
e. Be regular in doing home-works and assignments because all your course is
interrelated.
Course Calendar
WEEK 1
MANAGEMENT ACCOUNTING INFORMATION
Read Chapter 1






Management accounting information.
Difference between management accounting and financial accouting
Diversity of management accounting information
Value proposition
Management accounting in service organizations
Ethical issues
WEEK 2&3
THE BALANCED SCORE CARD
Read Chapter 2
 Need for measuring performance
 Strategy, creating strategy map
 Measuring performance through four perspectives
 Key performance indicator score cards
 Pitfalls of the balanced score card
WEEK 4 &5
USING COSTS INFORMATION FOR DECISION MAKING
Read Chapter 3
 Cost –Volume – Profit Analysis
 Make –or-buy decisions
 Mixed Costs,Sunk Cost, Opportunity Costs,Avoidable costs
 Analysis of relevant costs
WEEK 6&7
TRADITIONAL COST MANAGEMENT SYSTEMS
Read Chapter 4
 Cost Flows in Organization
‫ الرايض‬66899 .‫ب‬.‫ ص‬- 0108944 : ‫ فاكس‬- 944 ‫ حتويلة‬0108084 / 0108444 : ‫هاتف‬
44186
P.O. Box No. 66833, Riyadh - 11586, Tel. No. 454-8011, 454-8489 - Fax No. 4548317
Riyadh Philanthropic Society for Science
‫مؤسسة الرياض الخيرية للعلوم‬
Prince Sultan University
‫جامعة األمير سلطان‬
Dept. of Finance, Marketing and Accounting




‫قسم العلوم املالية والتسويق و احملاسبة‬
Cost Terms
Job order costing system
Overhead Allocation
Using Planned Capacity Costs
WEEK 8&9
ACTIVITY-BASED COST MANAGEMENT SYSTEMS
Read Chapter 5
 Limitations of traditional cost management systems
 Tracing costs to activities
 Tracing costs from activities to products
 Activity based manangement
 Tracing costs to customers
 Managing customer profitability
WEEK 10 &11
Read Chapter 6
MEASURING AND MANAGING CUSTOMER RELATIONSHIP
 Measuring Customer Prifitability
 Increasing Customer Profitability
 Process Improvements
 Activity Based Pricing
 Mnaging Relationship
 Life-Cycle Profitability
WEEK 12
MEASURING AND MANAGING PROCESS PERFORMANCE
Read Chapter 7
 Facility Lay out Systems
 Inventory Costs And Processing Time
 Cost of Non-conformance and Quality Issues
 Long-term product mix decisions
 Just-In-Time Manufacturing
 Kaizen Costiong
 Bench Marking
WEEK 13
MEASURING AND MANGING LIFE-CYCLE COSTS
Read Chapter 8
 Descriobe toal lif-cycle costing approach for managing product costs
 Explain Target costing
 Compute target costs
 Calacuate breakeven time for new product development project.
 Select non-financial; measures for product development processes.
‫ الرايض‬66899 .‫ب‬.‫ ص‬- 0108944 : ‫ فاكس‬- 944 ‫ حتويلة‬0108084 / 0108444 : ‫هاتف‬
44186
P.O. Box No. 66833, Riyadh - 11586, Tel. No. 454-8011, 454-8489 - Fax No. 4548317
Riyadh Philanthropic Society for Science
‫مؤسسة الرياض الخيرية للعلوم‬
Prince Sultan University
‫جامعة األمير سلطان‬
Dept. of Finance, Marketing and Accounting

‫قسم العلوم املالية والتسويق و احملاسبة‬
Identify environmental costing issues.
WEEK 14
USING BUDGETS FOR PLANNING AND COORDINATION
Read Chapter 10
 Determining The Levels of Capacity -Related and Flexible Resources
 The Budgeting Process
 Intrpreting Prodcution Plan
 What-If Analysis
 Comparing Actual With Planned Results
 Controlling Descretionary Expenditures
WEEK 15
FINANCIAL CONTROL
Read Chapter 11
 Environment of Financial Control
 Finacial Contriol
 Responsibility Centers And Evaluationg Unit Performance
 Efficiency and Productivity Elements of Return On Investments
WEEK 16 FINAL EXAMINATION
‫ الرايض‬66899 .‫ب‬.‫ ص‬- 0108944 : ‫ فاكس‬- 944 ‫ حتويلة‬0108084 / 0108444 : ‫هاتف‬
44186
P.O. Box No. 66833, Riyadh - 11586, Tel. No. 454-8011, 454-8489 - Fax No. 4548317
Riyadh Philanthropic Society for Science
‫مؤسسة الرياض الخيرية للعلوم‬
Prince Sultan University
‫جامعة األمير سلطان‬
Dept. of Finance, Marketing and Accounting
‫قسم العلوم املالية والتسويق و احملاسبة‬
WEEK 6
BUDGETING: RESOURCE ALLOCATION
Read Chapter 10
 Budgeting process
 Evaluating decision making alternatives,sensitivity analysis
 Comparing actual and planned results
 Periodic and continous budgets
First Major Examination
WEEK 7
BUDGETING: RESOURCE ALLOCATION (Continued)
Read Chapter 10
 Incremental budgeting , zero based budgeting, project funding
 Behavioral aspects of budgeting
WEEK 8
CAPITAL BUDGETING
Read Chapter 11
 Time value of money
 Capital budgets- six approaches
WEEK 9
CAPITAL BUDGETING (Continued)
Read Chapter 11
 Uncertinty in cashflows
 Post implementation audits and capital budgets
WEEK 10
BUDGETARY CONTROL
Read selected pages from Chapter 25
 The Concept of Budgetary Control
 Flexible Budgeting
Second Major Examination
WEEK 11
FINANCIAL CONTROL
Read Chapter 12
 Responsibility centers and evaluating performances
 Cost allocations to support financial control
 Assigning and valuing assets in investment centers
‫ الرايض‬66899 .‫ب‬.‫ ص‬- 0108944 : ‫ فاكس‬- 944 ‫ حتويلة‬0108084 / 0108444 : ‫هاتف‬
44186
P.O. Box No. 66833, Riyadh - 11586, Tel. No. 454-8011, 454-8489 - Fax No. 4548317
Riyadh Philanthropic Society for Science
‫مؤسسة الرياض الخيرية للعلوم‬
Prince Sultan University
‫جامعة األمير سلطان‬
Dept. of Finance, Marketing and Accounting
‫قسم العلوم املالية والتسويق و احملاسبة‬
WEEK 12
FINANCIAL CONTROL (Continued)
Read Chapter 12
 Efficiency and productivity elements on return on investments
 Efficacy of financial control
WEEK 13
METHODS TO STAY COMPETITIVE
Read Chapter 7
 Target costing
 Kaizen costing
 Environmental costing
WEEK 14
METHODS TO STAY COMPETITIVE (Continued)
Read Chapter 7
 Bench marking
 Non financial measures-Balanced scorecard
WEEK 15
MANAGEMENT ACCOUNTING CONTROL SYSTEM DESIGN -TECHNICAL
CONSIDERATIONS
Read Chapter 7
 The cycle of control
 Relevance of information
 Scope of the system
WEEK 16
MANAGEMENT ACCOUNTING CONTROL SYSTEM DESIGN- TECHNICAL
CONSIDERATIONS (Continued)
Read Chapter 7
 Total life cycle costing
 Research, development and engineering cycle
 Manufacturing cycle, post sale and disposal cycle
WEEK 17
FINAL EXAM
‫ الرايض‬66899 .‫ب‬.‫ ص‬- 0108944 : ‫ فاكس‬- 944 ‫ حتويلة‬0108084 / 0108444 : ‫هاتف‬
44186
P.O. Box No. 66833, Riyadh - 11586, Tel. No. 454-8011, 454-8489 - Fax No. 4548317