Management Accounting and Control in Service

This accounting course is offered in different master's programmes. Students who have no background in accounting are also welcome, This course is about learning to "speak the language of accounting" which is the language of the management.

You will learn to explain the importance of cost accounting and budgeting for decision making, and you will learn to make Excel budgets for a cabin rental business. You will learn about different key performance indicators in the service development context, how customer profitability can be analysed, and you will develop your skills in cost accounting and pricing

Learning outcomes

The student is able to

• explain the importance of cost accounting and budgeting for decision making
• use key performance indicators in the service development context
• analyse customer profitability
• develop value-based pricing

Content

This course includes lectures, workshops, individual assignments, writing and essay and working in teams on a chosen topic. All five modules are compulsory. Absence during the last two full days, 19.-20.3., must be compensated with an additional assignment. This course is offered online in Zoom in spring 2021.

The course is divided into five modules. Estimated time required:

1. Orientation and Introduction to Management Accounting: 10 hours
2. Cost Accounting and Pricing (Excel assignments and discussion): 15 hours
3. Budgeting and Control (Excel budgets for cabin rental business): 35 hours
4. Essay: 40 hours
5. Team work, presentation, peer review: 35 hours

Schedule

Online Zoom sessions:

• Tuesday 28.2. at 16.30-19.30
• Tuesday 14.3. at 16.30-19.30
• Tuesday 25.4. at 16.30-19.30
• Thursday 27.4. at 16.30-19.30

Materials and literature

Suggestions, Management Accounting books:

• Drury, Colin. Management and Cost Accounting
• Gowthorpe, Catherine. Management accounting
• Atrill, Peter. Accounting and finance for non-specialists.
• There are many other accounting books in libraries and online. Find books on Management Accounting (not Financial Accounting). You need a basic book on management accounting for the orientation and module 1 assignments.
  
  

Articles:

• Tenucci, Andrea and Laine Teemu, 2016. CIMA report, The role of management accounting in servitisation: https://www.cimaglobal.com/Research--Insight/The-role-of-management-accounting-in-servitisation/
• Laine, T., Cinquini, L., Suomala, P., & Tenucci, A. (2013, June). Roles of accounting and control in New Service Development within Servitization–a literature review and research implications. In Proceedings of the 2013 Naples forum on service-service dominant logic, network & systems theory and service science (pp. 18-21). http://www.naplesforumonservice.it/uploads//files/Laine%2CCinquini%2C%20Suomala%2C%20Tenucci.pdf
• Laine, T., Paranko, J., & Suomala, P. (2012). Management accounting roles in supporting servitisation. Managing Service Quality: An International Journal.
  https://tutcris.tut.fi/portal/files/1025738/laine_management_accounting_roles_in_supporting.pdf
• Laine, Teemu; Cinquini, Lino; Suomala, Petri; Tenucci, Andrea. Roles of accounting and control in New Service Development within servitization - a literature review and research implications.
  http://www.naplesforumonservice.it/uploads//files/Laine%2CCinquini%2C%20Suomala%2C%20Tenucci.pdf
  
  More articles, videos and podcast links will be given when the course starts.

Evaluation

The final grade for this course is a weighted average of your assignments. The weights are:

• Orientation: pass/fail
• Modules 1, 2 and 3 (Individual assignments): 40%
• Module 4 (Individual essay): 30%
• Module 5 (Team work): 30%