Advanced Performance Management (ACCT 621)

OVERVIEW

1. COURSE DESCRIPTION

This course introduces candidates to the strategic role of management accounting as a discipline for planning
and controlling performance so that strategic objectives can be set, monitored and controlled. The course
recognises the impact of external factors on strategic management issues and covers the risks these factors

present and how they can be measured and managed. The course then moves to the application of high-
level performance measurement techniques in a variety of contexts, including not-for-profit organisations

and multinational businesses while adopting the role of an advisor to senior management or independent
clients on how to assess and control the performance of an entity, including the recognition of whether
a business is facing difficulties or possibly failure. The course concludes with corporate failure where
candidates assess whether a business is facing difficulties or possibly failure.

2. REASON FOR THE COURSE

This course aims to apply relevant knowledge, skills and exercise professional judgement in selecting and
applying strategic management accounting techniques in different business contexts to contribute to the
planning, control and evaluation of the performance of an organisation and its strategic and operational
development.

3. STUDY HOURS

4. ROLE IN CURRICULUM


Prerequisites:
The prerequisite for this course is Performance Management.

SKILLS

  • LEARNING OUTCOMES
  • ASSESSMENT AND GRADING
  • TEACHING METHODS
  • STUDY PLAN
  • TEXTBOOKS AND REFERENCES

5. COURSE LEARNING OUTCOMES (CLO)

On successful completion of this exam, candidates should be able to:
A. Use strategic planning and control models to plan and monitor organisational performance
B. Assess the impact of risk and uncertainty on organisational performance
C. Identify and evaluate the design features of effective performance management information and
monitoring systems and recognise the impact of developments in technology on performance
measurement and management systems.
D. Apply appropriate strategic performance measurement techniques in evaluating and improving
organisational performance
E. Advise clients and senior management on strategic business performance evaluation and on recognising
vulnerability to corporate failure
F. Employability and technology skills.

Knowledge Level of Learning Related PLO
Understand and identify Accounting Techniques (CK2, A, C)
Understand and identify changes in accounting techniques due changes in external business environment and information availability.		 Understand PK1
Explain and apply Performance Management (CK2, A, D)
Explain and apply relevant models to identify the business current position in order to manage performance to meet objectives and mission statements.		 Apply PK1
Cognitive Skills Level of Learning Related PLO
Prepare, process and present cost Information Management (CC1, A, B)
Prepare, process and present cost information to support management planning and decision-making in a variety of business contexts.		 Apply PC6
Analyse Strategic Budget (CC3, A, D)
Analyse different types of budgets suitable for planning and controlling different divisions at different stage of growth.		 Apply PC6
Navigate Responsibilities Centers (CC4, D)
Discuss transfer pricing, divisional performance and reward management in relation to different types of responsibility centres.		 Analyse PC1
Calculate and interpret Performance Measurement Impact (CC5, F)
Calculate and interpret the results of NPV, IRR and MIRR calculations on performance measurement and management.		 Apply PC3
Communication, Information Technology, and Numerical Skills Level of Learning Related PLO
Use Excel Proficiency in Financial Analysis (CCIT, F)
Use spreadsheet to calculate NPV, IRR and MIRR.		 Apply PCIT1
Interpersonal Skills and Responsibilities Level of Learning Related PLO
Develop Professional Skills (CIP1, F)
Develop professional skills on presentation, commercial acumen, scepticism and analysis and evaluation.		 Apply CCIT1, F

6. ASSESSMENT AND GRADING

Grades will be determined based on a grading score, calculated using the following assessments and score allocations:

Topic CLO Assessment and Scoring Total CLO
Score		 Skill
Weighting
for Grade
Participation Take-home
case studies (3)		 Final Exam
Identify and explain Accounting Techniques (CK2, A, C) 100%     100% 20%
Explain and apply Performance Management (CK2, A, D) 100%     100% 10%
Prepare, process and present cost Information Management (CC1, A, B)   50% 50% 100% 20%
Analyse Strategic Budget (CC3, A, D)   40% 60% 100% 10%
Navigate Responsibility Centers (CC3, D)   40% 60% 100% 10%
Calculate and interpret Performance Measurement Impact (CC4, F)   40% 60% 100% 10%
Use Excel Proficiency in Financial Analysis (CCIT1, F)   40% 60% 100% 15%
Develop Professional Skills (CIP1, F)   40% 60% 100% 5%

7. TEACHING METHODS

This course is primarily lecture, class activities and assignment-based; assigned homework and in-class tests
will support learning to material covered in class. The class will be devoted to lecture, class activities and
exercises and in-class tests.

8. STUDY PLAN

The course targets the 50 lessons in the study plan below. Each lesson is 1.5 class hours each; there are a total of 75 class hours. The study plan below describes the learning outcome for each lesson, described in terms of what the student should be able to do at the end of the lesson. Readings should be done by students as preparation before the start of each class. Implementation of this study plan may vary somewhat depending on the progress and needs of students.

  Lesson Learning Outcomes Teaching and Learning Activities,
Assessment
1

Introduction
Changes in business structure and management accounting

  1. Change in the role of management accountant according to Burns and Scapens
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 1 pp 23-25
2

Changes in business structure and management accounting

  1. Absorption Costing
  2. Marginal Costing
  3. Activity Based Costing
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 3 pp 132-133, Chapter 14 pp 494
3

Changes in business structure and management accounting

  1. Activity Based Management
  2. Lifecycle Costing
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 3 pp 134-136, Chapter 12 pp 445-446
4

Changes in business structure and management accounting

  1. Target Costing
  2. Value Analysis
  3. Business Process Re-engineering
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 4 pp 187-191, Chapter 13 pp 463-466
5

Changes in business structure and management accounting

  1. Kaizen Costing
  2. Data Analytics and Big Data
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 5 pp 204-242, Chapter 13 pp 460-462
6

Changes in business structure and management accounting

  1. Management Reports
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 6 pp 252-260
7

Changes in business structure and management accounting

  1. Lean Manufacturing
  2. Just-In-Time
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 13 pp 467-470, pp 478-480
8

Changes in business structure and management accounting

  1. Total Quality Management
  2. Cost of Quality
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 13 pp 455-459, pp 466
9

Changes in business structure and management accounting

  1. Value Chain Analysis
  2. Mc Kinsey’s 7S
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 4 pp 180-186
10

Changes in business structure and management accounting

  1. Benchmarking and league table
  2. Environmental management accounting
  3. Integrated Report
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 1 pp 27-30, pp 33-41, Chapter 10 pp 378-380, Chapter 14 pp 490-508
11

Impact of external factors on performance management

  1. Mission statement, Critical success factor and key performance factors
  2. Strategic, Tactical and Operational information
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 1 pp 5-20
12

Impact of external factors on performance management

  1. Mendelow Stakeholder Analysis
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 2 pp 77-80
13

Impact of external factors on performance management

  1. Strategic, Tactical and Operational information
  2. PEST Factors
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 2 pp 72-77, pp 83-86, Chapter 4 pp 166-183
14

Strategic planning and control

  1. SWOT Analysis
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 1 pp 42-43
15

Strategic planning and control

  1. Porter’s Five Forces
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 2 pp 74-77
16

Strategic planning and control

  1. BCG Matrix
  2. Porter’s Generic Choices
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 1 pp 44-51
17

Impact of Risk and Uncertainty

  1. Relevant Costing
  2. Cost-Volume-Profit Analysis
  3. Sensitivity Analysis
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 2 pp 90-91
18

Impact of Risk and Uncertainty

  1. Maximax
  2. Maximin
  3. Minimax Regret
  4. Expected Values
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 2 pp 92-100
19

Divisional performance and transfer pricing issues

  1. Divisionalisation
  2. Transfer Pricing
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 4 pp 167, Chapter 9 pp 344-350
20

Divisional performance and transfer pricing issues

  1. Methods of Transfer Pricing
  2. International Transfer Pricing
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 9 pp 351-353
21

Performance management and control

  1. Budgetary control
  2. Hopwood Management Style
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 3 pp 115-116, Chapter 7 pp 280-281
22

Performance management and control

  1. Fixed Budgets
  2. Incremental Budgets
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 3 pp 117-123
23

Performance management and control

  1. Zero Based Budgeting
  2. Rolling Budgets
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 3 pp 124-130
24

Performance management and control

  1. Flexed Budgets
  2. Activity Based Budgeting
  3. Planning and operational variances
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 3 pp 131-134, pp 139-142, pp 144-145
25

Performance management and control

  1. Responsibility Accounting
  2. Human Resource Management (HRM)
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 7 pp270-275, Chapter 9 pp 325
26

Performance management and control

  1. Benefits and Problems with linking reward schemes and performance
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 7 pp 276-279
27

Strategic Performance Measurement

  1. Peter Drucker on Objectives and what gets measured gets done
  2. Financial Performance Indicators
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 8 pp 290-298
28

Strategic Performance Measurement

  1. Net Present Value
  2. Internal Rate of Return
  3. Modified Internal Rate of Return
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 8 pp 299-302
29

Strategic Performance Measurement

  1. Return on Investment
  2. Residual Income
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 9 pp 326-333
30

Strategic Performance Measurement

  1. Variances
  2. Non Financial Performance Indicators
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 3 pp 142-144, Chapter 10 pp 393-403
31

Strategic Performance Measurement

  1. Mean, Median, Mode
  2. Value Based Management
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 9 pp 334-343
32

Strategic Performance Measurement

  1. Economic Value Added
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 9 pp 334-343
33

Strategic Performance Measurement

  1. Economic Value Added
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 9 pp 334-343
34

Strategic Performance Measurement

  1. Economic Value Added
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 9 pp 334-343
35

Strategic Performance Measurement

  1. Balanced Scorecard
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 11 pp 404-410
36

Strategic Performance Measurement

  1. Balanced Scorecard
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 11 pp 404-410
37

Strategic Performance Measurement

  1. Performance Pyramid
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 11 pp 417-421
38

Strategic Performance Measurement

  1. Performance Pyramid
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 11 pp 417-421
39

Strategic Performance Measurement

  1. Building Block Model
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 11 pp411-416
40

Strategic Performance Measurement

  1. Building Block Model
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 11 pp411-416
41

Strategic Performance Measurement

  1. Non-for-profit-organisation and Value For Money
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 10 pp 369-377
42

Strategic Performance Measurement

  1. Six Sigma
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 13 pp 471-475
43

Strategic Performance Measurement

  1. Six Sigma
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 13 pp 471-475
44

Strategic Performance Measurement

  1. Benefits of Performance Measurement
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 8 pp 287-292
45

Strategic Performance Measurement

  1. Berry, Broadbent and Otley Problems of Performance Measurement
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 7 pp 279, Chapter 11 pp393-395
46

Strategic Performance Measurement

  1. Application to Case Scenario
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 1
47-50

Strategic Performance Measurement

  1. Application to Case Scenario
  • Lecture
  • Discussion
  • Practice past year questions

Reading:
References: Kaplan Study Text Chapter 1

Time for the midterm and final examination is not included in the lecture hours above.

9. TEXTBOOKS AND REFERENCES

Textbook

1. Kaplan Publishing, Advanced Performance Management, (For exams from 1 September 2020 to 30
June 2021).

Education Resources