MANAGEMENT SCHOOL

MODULE OUTLINE – ADVANCED MANAGEMENT ACCOUNTING

ACC3011 ADVANCED MANAGEMENT ACCOUNTING

2022-2023

ADMINISTRATIVE AND CONTACT DETAILS

Prerequisites: ACC1003, ACC2005

Lecture Times and Location: Tuesday 12.00 to 13:00 (PFC 02/026)

Tuesday 14:00 to 15:00 (PHY/EMEL)

Module Coordinator: Prof. Martin Quinn

Room: 02.027, Riddel Hall
Office Hours: Monday 10.00 – 12:00 or by arrangement.
E-mail: [email protected]

Module Lecturer(s): Prof. Martin Quinn, Dr. Laura Mazzola.

School Student Office:
Queen’s University Management School
Queen’s University Belfast
Room LG.002 T: +44 (0) 28 9097 4200
Riddel Hall F: +44 (0) 28 9097 4201
185 Stranmillis Road E: [email protected]
Belfast BT9 5EE W: www.qub.ac.uk/mgt
Office Hours: Monday- Thursday 9:00am-
5pm, Friday 9:00am –
4:30pm

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MODULE DESCRIPTION:
Management accounting, both in businesses and in not-for-profit organisations, serves the purpose of
identifying, measuring and communicating economic information to permit management and employees
in an organisation to make informed judgements and decisions. Thus, it is concerned with the provision
of both financial and non-financial information to decision makers. Implicit in the understanding of
management accounting is the requirement to appreciate both decision-making processes and the
different information needs of the users of accounting information in various organisation types. This
module builds upon previous study of the area and begins by setting management accounting within an
economic, political, social and cultural context. The module focuses on information for planning, control
and performance measurement. Key issues faced by many organisations that will be examined in this
module relate to: the extent (if any) of decentralisation; the measurement of divisional performance; and
transfer pricing (including the performance measurement and behavioural aspects). Moreover, in the
light of changes within the business environment including deregulation, globalisation, reducing product
life cycles, continuous improvement objectives, sustainability, increasing customer sophistication,
digitalization and internationalisation, the module also looks at management accounting from a change
perspective and a strategic perspective. This is achieved by considering strategic cost management
approaches, performance measurement and management, behavioural implications and exploring
management accounting change.

MODULE AIMS:
This module seeks to develop further students' technical skills in relation to the practical concepts of
management accounting, whilst incorporating current advances in theory and research. The module also
attempts to develop students’ analytical skills in relation to problem structuring and system design
aspects of management accounting; to develop evaluative and interpretative skills in relation to both
financial information and the practical issues surrounding the role of management accounting within an
organisational setting; and, to gain an understanding of the organisational role of management
accounting through a critical examination of the evolving role of management accounting in the areas of
managerial decision making, planning and control.

LEARNING OUTCOMES:
At the end of this module students will have:
1. Further develop the technical, analytical and evaluative skills required in the field of management
accounting.
2. Acquired an understanding of management control issues.
3. Gained an insight into the synergy between the role of management accounting and other roles in an
organisational setting.
4. Achieved a comprehensive understanding of, and the ability to discuss, critically evaluate and apply
the financial and non-financial aspects of management accounting theory and methodology to a
management accounting role within an organisation through the medium of case study/group
work/examination.
5. Gained an appreciation of the importance of keeping abreast of current and likely future research
into the field of management accounting given the ever-evolving business environment.

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EDUCATIONAL AIMS:
Students will develop and enhance their abilities to work in small groups and make presentations.

MODULE ASSESSMENT:

Students must achieve an overall mark of 40% in the module to pass.

The module is assessed by a combination of continuous assessment and a final written examination,
consisting of:

Student portfolio (10% of total mark). This element of assessment consists of completion of assigned
quizzes via the module Canvas page. There are eight quizzes in total and all are assessed automatically.
Each quiz has differing points, ranging from 12 to 102 points – thus the overall mark for these quizzes is
weighted. Late submissions are not accepted, and extensions cannot be granted.

Group presentations (15% of total mark). This consists of one presentation which will be a review and
critique of given papers/topics. The module co-ordinator will assign students to groups on a random
basis using Canvas group allocation tools. Students will only be allowed to change groups in extenuating
circumstances and if a space is available in another grouping. The presentation will have a maximum
allowed time of 20 minutes and questions will be posed for a maximum of 5 minutes on the content of
the presentation and/or the underlying papers read. It is expected that all group members will contribute
to the presentation and processes will be used to validate this. More detail in be given in class on the
timing and form of presentations, although they typically take place during weeks 6 to 8 of the semester.

Final examination (75% of total mark). The examination will take place at the end of the semester and
will be of two hours duration. The paper format will be as follows:
 Section A (two theory/discussion questions, answer one), and
 Section B (two narrative questions depicting business scenarios, answer one).
 Section C (two computational questions, answer one)

If exceptional circumstances apply, you should consult the University’s Regulations on Exceptional
Circumstances available at www.qub.ac.uk/sgc/ec. Exceptional Circumstances forms should be sent to
[email protected].

Students are reminded that plagiarism is an academic offence. Plagiarism involves deliberately or
inadvertently presenting someone else's ideas as your own. It is cheating. It does not just apply to direct
quotations but also to summarised and paraphrased argument. Plagiarism is treated very seriously and
usually results in disciplinary action. Further information on plagiarism and how to avoid it is available
here.

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TUTORIALS:
There are ten tutorial hours scheduled for this module. Tutorials allow students to review assigned work
and present groupwork. Participation by students is expected as is submission of assigned work. It is the
student’s responsibility to self-register for a tutorial group. Times are detailed below.

Tutorial times/locations

TT01 – Monday 13:00 – 14:00 – 11UQ/01/010

TT02 – Monday 16.00 – 17:00 – 26UQ/01/005
TT05 – Monday 17:00 – 18.00 - 26UQ/01/005
TT03 - Tuesday 10:00 – 11:00 - PFC/03/007
TT04 Tuesday 11:00 – 12:00 - PFC/03/007

READING MATERIALS:

Main text(s):

Drury, C. (2021), Management and Cost Accounting, 11th edition, Andover: Cengage Learning (students
who wish to gain additional practice with numerical examples are advised to purchase the Students
Manual or use the accompanying online resources). 10th edition also acceptable.
Academic journal articles as detailed in teaching plan and lecture slides.

Supplementary texts:

Burns, J., Quinn, M.; Warren, L. and Oliveira, J. (2013). Management Accounting, McGraw-Hill.

Kaplan, R.S and Norton, D.P. (1996), The balanced scorecard: translating strategy into action, Boston:
Harvard Business School Press.

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INDICATIVE TEACHING PLAN
Please note: lecture slides may contain additional readings.

TOPIC/WEEK READING
E= essential U= useful
Note the linked academic articles require QUB login
Introduction and context of management accounting  Drury, Management and Cost Accounting. Chapter 1, 2 and 3
[E]
Week 19 – 24/01/23
 Quinn, M. (2014). The elusive business partner controller.
Introduction to the module
Controlling & Management Review, 58(2), 22-27. [E]
Setting management accounting within an economic,
 Walker, S. P. (2016). Revisiting the roles of accounting in
political, social, international and cultural context.
society. Accounting, Organizations and Society, 49, 41-50.
History and development of management accounting and
[U]
management accountant’s role.
Ethics in the management accounting role.  Gervais, P., & Quinn, M. (2016). Costing in the early
Industrial Revolution: gradual change to cost calculations at
US cloth mills in the 1820s. Accounting History Review,
26(3), 191-217. [U]
 CGMA The Changing Shape of the Finance Function (2018)
available at
https://www.cgma.org/content/dam/cgma/resources/reports/do
wnloadabledocuments/changing-shape-finance-cgma.pdf [E]
Management control  Drury, Management and Cost Accounting, Chapter 16 [E]
 Chenhall, R. H. (2003), Management control systems design
Weeks 20 & 21 -31/01/23, 07/02/23 within its organizational context: Findings from contingency-
Context of management accounting for control: accounting based research and directions for the future, Accounting,
for organisational control; accounting and management Organizations and Society, 28 (2/3), 127–168 [U]
control systems; contingency theory; ethics in management  Otley, D. (2016). The contingency theory of management
control. accounting and control:1980–2014. Management Accounting
Research, 31, 45-62. [E]

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 Martyn, P., Sweeney, B. and Curtis, E. (2016), Strategy and
control: 25 years of empirical use of Simons’ Levers of
Control framework, Journal of Accounting & Organizational
Change, Vol. 12 No. 3, pp. 281-324 [E]
 Rosanas, J. M., & Velilla, M. (2005). The ethics of
management control systems: Developing technical and moral
values. Journal of Business Ethics, 57(1), 83-96. [E]
Weeks 22-23 – 14/02/23, 21/02/23 - Laura Mazzola  Drury, Management and Cost Accounting. Chapters 17 and 18
Advanced variance analysis: sales mix and quantity [E]
variances; marketing variances; direct material mix and 
yield variances; direct labour mix and productivity
variances; planning and operational variances

Week 24 – 28/02/23  Drury, Management and Cost Accounting. Chapter 19 [E]

Decentralisation and control issues: organisational  Drury, C. and Shishini, H.E. (2005), Research Report: Divisional
structures; delegation of authority within organisational Performance Measurement: An Examination of the Potential
structures; benefits/ limitations of divisionalised structures; Explanatory Factors, CIMA, London UK. [U]
alternative measures of divisional performance (return on
investment, residual income and economic value added).
Week 25 – 07/03/23  Drury, Management and Cost Accounting. Chapter 20 [E]
Transfer pricing issues: transfer pricing in divisionalised
companies; purposes of a transfer pricing system; evaluating
managerial performance; alternative transfer pricing
methods; resolving transfer pricing conflicts; international
transfer pricing issues; behavioural and performance
measurement issues.
Strategic issues and recent developments  Drury, Management and Cost Accounting. Chapter 21 [E]
 Yi, M. and Tayles, M. (2009), On the emergence of strategic
Weeks 26–27 - 14/03/23, 21/03/23 management accounting: an institutional perspective, Accounting
Strategic cost management issues including life-cycle and Business Research, Vol. 39 (5), pp. 473-495. [U]

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costing, target costing, kaizen costing, total quality  CGMA Big Data Briefing (2014) available at
management, just in time (JIT); business process re- https://www.cgma.org/resources/reports/downloadabledocuments/
engineering, value chain analysis/value creation, cgma-briefing-big-data.pdf [U]
sustainability, cost driver analysis and competitive  Johnstone, L. (2018). Theorising and Modelling Social Control in
advantage analysis. Recent issues such as the impact of big Environmental Management Accounting Research. Social and
data, artificial intelligence on management Environmental Accountability Journal, 38(1), 30-48 [U]
accounting/accountants.

Week 31– 18/04/23  Burns et al. Management Accounting, Ch 22 [E]

Management accounting change – understanding change  Quinn, M. (2014). Stability and change in management
and stability using concepts such as organizational routines accounting over time—A century or so of evidence from
Guinness. Management Accounting Research, 25(1), 76-92.[U]
Performance measurement  Drury, Management and Cost Accounting, Chapter 22 [E]
 Kaplan R.S. and Norton D.P. (2001a). Transforming the Balanced
Week 32 – 25/04/23 Scorecard from Performance Measurement to Strategic
Performance measurement in the context of manufacturing Management: Part I, Accounting Horizons, 15(1), 87-104 [E]
and service businesses;  Kaplan R.S. and Norton D.P. (2001b). Transforming the Balanced
strategic performance management systems, including the Scorecard from Performance Measurement to Strategic
Balanced Scorecard. Management: Part II, Accounting Horizons, 15(2), 147-160 [E]
 Nørreklit, H., & Mitchell, F. (2014). Contemporary issues on the
balance scorecard. Journal of Accounting & Organizational
Change, 10(4) and associated papers in this special issue [U]

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Tutorial/workshop schedule
All submissions must be via Canvas. Submission for all is typically Monday at 09:00. No late submissions.

Week Due Task

20 Canvas Quiz based on Goretzki et al (2013) and Carnegie et al (2020)

21 Canvas Quiz based on Otley (2016).

22 Canvas Quiz based on Malmi & Brown (2008), Tessier and Otley (2012) and Adler & Borys (1996).
23 Canvas Quiz based on past exam questions on management control – May 2020 Q1, May 2022 Q2.
24 Canvas Quiz (randomised) based on mix and yield and advanced sales variances.
25 Canvas Quiz (randomised) on divisionalisation
26 Group presentations. Note some presentations may be outside the normal tutorial time.
27 Group presentations. Note some presentations may be outside the normal tutorial time.
31 Canvas Quiz based on Tutti Frutti (transfer pricing), Best Ltd (target costing); life cycle costing question (Q5
August 2019 Strawberry Pot).
32 Canvas Quiz based on past exam questions on BSC – Q3 Aug 2019, Q3 Aug 2020. NOTE due Friday, not
Monday

Based upon current advice and circumstances, it is anticipated that lectures and workshops will be delivered on a live face-to-face
basis. While lectures will be recorded, and the recordings made avilable prior to the following week’s lectures, lectures will
NOT be live streamed. Students are expected to attend all lectures and workshops in person. The lecture recordings are
intended for revision purposes and watching the lecture recordings is NOT a substitute for attendance in person. If it appears
that the provision of lecture recordings is having a detrimental impact on attendance, lecture recordings will cease to be
provided. While every effort will be made to apply the above approach throughout the semester, advice and circumstances may
change and it may be necessary to make alternative arrangements to facilitate the delivery of the module.