Management Accounting Control - Contemporary Theories and Issues

Contents

AIM OF THE COURSE

The main aim of the course is to develop a critical understanding of the management accounting control. The course critically examines a range of contemporary management accounting control issues and theories to understand the current practices of management accounting locally and globally. In particular, the course evaluates management control theories in the context of different cultural, political and socio-economic contexts. The course will also explore the current debate of privatization and public sector reforms and their underlying assumptions implicating better accounting controls in privatized enterprises in both developed and emerging countries.

THE MAIN ISSUES

Traditionally, management accounting is seen as a tool to provide information to internal parties in organizations for decision making, planning and control. Contemporary management accounting studies have demonstrated that the role of management accounting within the organization is much wider and complex. Similarly, a variety of management accounting theories have been developed to understand the changing nature of management accounting control practices.

Thus, this course begins with the evolution of management accounting in order to understand the socio-political and socio-economic context of management accounting practices and research. This will provide the opportunity to critically discuss the management control theories and their influences on management accounting practices.

The discussions on theories will also focus on the questions such as the applicability of management accounting control theories and approaches in non-Western contexts. In addition to the analyses of various theories of management accounting controls, the course examines the topical issues such as the implications of culture in management accounting. This should provide a critical understanding of varied management control practices in different cultural settings. The course subsequently examines the privatization and public sector reforms debate with regard to management accounting controls.

The particular theme will scrutinize the claims made by the advocates of privatization and public sector reforms that public sector reforms and ownership changes will bring about sophisticated management controls within public and privatized companies.

MAIN TOPICS INCLUDE:

1. Evolution of Management Accounting Control Research and Practices
2. Conventional Management Accounting Theories: Normative, Behavioral Theory and Contingency Theory
3. Contemporary Management Accounting Control Theories: Interpretive, Structural and Postmodernism
4. Understanding Management Control Theories in Different Contexts
5. Culture and Management Accounting Control
6. Management Accounting Control in Public Sector
7. Privatization and Management Controls
8. Improving Management Controls

TEACHING METHODOLOGY

The course consists of lectures, group work, presentations of cases and papers. The lecture will indicate the main areas and themes that you will consider during the course. Lectures will be followed by cases, group work and presentations of selected topics.

LEARNING OUTCOME

At the end of the course students should be able to:

1. Understand the history and development of management accounting;
2. Understand the contribution of traditional and contemporary costing methodologies to internal reporting, decision-making and organizational control;
3. Understand the contemporary theoretical perspectives to management accounting control;
4. Understand comparative analyses of management control practices and various control theories;
5. Engage in critical debate in the examination of traditional management control theory in different cultural, political, and socio-economic contexts;
6. Understand management control practices operating in enterprises located in emerging and less developed countries;
7. Understand cultures and their implications on management accounting controls
8. Understand the current debate of privatization and public sector reforms and accounting controls.

EVALUATION OF LEARNING OUTCOME: ASSESSMENT CRITERIA

By the end of the course students must be able to fulfill the above stated learning outcome.
Grade 12:
Grade 12 denote 100% target fulfillment related to the learning outcome.
Grade 02:
Grade 02 is the minimum grade required for passing and is therefore given for the minimum acceptable performance related to the learning outcome.

LITERATURE

There is no single major textbook for the course. However, a significant number of book chapters will be used from the following textbooks:
1. Management Accounting Change – Approaches and Perspectives, by Wickramasinghe, D and Alawattage, C, 2007, Routledge: London
2. Issues in Management Accounting, by Hopper, T., and Scapens, R., Northcott, D., 2007, Third Edition, FT Prentice Hall.
3. Management and Cost Accounting, by Collin Drury, London: Thompson Business Press, 6th (2004) Edition.