Strategic accounting

optional courses

1. Contemporary enterprises need holistic approach to the strategy implementation and the managers must use the qualitative and quantitative information to achieve goals of the organization. Accounting information must be relevant and enable the company to achieve strategic advantages. 2. This course provide knowledge about applying accounting to strategy and the advanced methods of strategic accounting are illustrated by numerous case studies. 3. Tools of strategic accounting. 4. The course is intended for M.A. students.

5. Assessment is based on group assignments

1. The Foundations of Strategic Accounting (3 hours)

Measuring business performance, strategic decisions, corporate strategy, goals, operational strategies, benchmarking. Strategy Alternatives: theories and models, new rules of competitions, industry analysis, stakeholders' analysis, cost leadership, resources management, value chain.

2. Product and Customer Profitability and Activity-Based Costing (3 hours)

Product profitability, customer profitability, revenue centres. Cost centres, cost allocation, transfer pricing, product costing, ABC management

3. Accounting for Quality and Balanced performance measurement (3 hours)

Customer focus, quality control, target costing, kaizen costing, quality cost management.

Balanced performance measurement, strategies in different types of the organizations, strategy maps.

4. Group assignment presentations (3 hours)

Required readings:

• Malcolm Smith, Performance measurement & management. A strategic approach to management accounting, SAGE Publications, London, 2005

• Case studies handed in during the classes

Suggested readings:

• Ch. S. Chapman, Controlling strategy. Management, Accounting and Performance Measurement, Oxford University Press, USA 2005

A. Knowledge

1. The students understand the importance of using different types of data when assessing the financial situation of the company

2. The students know and understand a profitability analysis of the client portfolio, the method of activity cost accounting, quality cost accounting, as well as the usefulness of the combined use of various types of financial and strategic measures

4. The student knows the basic ways of obtaining strategic data concerning a given company/ industry

B. Skills

1. The students are able to design a strategic accounting system for an enterprise or public institution

2. The students know how to choose the strategic accounting tool appropriate for a given problem

3. The students can prepare a report on how to monitor the implementation of the company's strategic objectives using and combining diverse data sets

C. Social competences

1. Students are able to work as a team on the implementation of complex, interdisciplinary strategic consulting projects using diverse sources of information

2. The students understand the need to apply strategic accounting tools to manage the company

3. The students can communicatively present strategy maps, drawing conclusions for the functioning of the company in the long-term horizon

KW01, KW02, KW03, KW04, KU01, KU02, KU03, KU04, KU05, KU06, KU07, KK01, KK02, KK03

Attendance during the lectures is obligatory (max. 2 unexcused absences).