Management Accounting I: Towards Profitable Decision Making
Form of learning:
After this course students will:
- Understand and apply basic concepts of costs and profitability
- Understand and apply basic and advanced cost tracing and assignment methods (job costing, process costing, traditional costing, ABC) to accurately determine profitability
- Understand and apply tools for profitable operational and strategic decision making (cost volume profit analysis, pricing and product mix decisions, customer analysis)
Managing costs (understood as capacity and material inputs to the implementation of organizational strategy) is essential for achieving product and service profitability and ultimately organizational profitability. Understanding what gives rise to costs is hence essential for the survival of any kind of organization. This course focuses on developing an actionable understanding of profitability from the costing perspective.
Students will gain an intermediate-level understanding of profitability and profitability management from the costing perspective. They will also explore various cost assignment and tracing techniques, and discuss their applications, as well as their strengths and weaknesses. After arriving at a basic understanding on costing we explore uses of cost information for profitable decision making performance management.