PERFORMANCE MANAGEMENT (ACCT 521)

OVERVIEW

1. COURSE DESCRIPTION

Performance Management (PM) begins by focusing on the information needs, technologies and systems
required by organisations to manage and measure performance in the modern, competitive environment.
It introduces more specialised costing and management accounting topics. Decision-making techniques
on problems surrounding scarce resources, pricing and make-or-buy decisions, and how this relates to the
assessment of performance. Risk and uncertainty are a factor of real-life decisions and candidates need

to understand risk and be able to apply some basic methods to help resolve the risks inherent in decision-
making. Budgeting techniques, including quantitative techniques, and the problems inherent in them

are focused on as well. In addition the behavioural aspects of budgeting are important to be understood.
Standard costing and variance are built on. Mix and yield variances and planning and operational variances
are explored and are linked to performance management. The course concludes with the performance
measurement and control which is the major area of the syllabus. It highlights the importance of financial
and non-financial performance measures in management and should also appreciate the difficulties in
assessing performance in divisionalised businesses and the problems caused by failing to consider the
external influences on performance.

2. REASON FOR THE COURSE

This course aims to develop knowledge and skills in the application of management accounting techniques
to quantitative and qualitative information for planning, decision-making, performance evaluation, and
control.

3. STUDY HOURS

4. ROLE IN CURRICULUM


Prerequisites:
There is no prerequisite in addition to the program entry requirements.

SKILLS

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

5. COURSE LEARNING OUTCOMES (CLO)

The learning outcomes for this course cover six main areas: Information, technologies and systems for
organisational performance, Specialist cost and management accounting techniques, Decision-making
techniques, Budgeting and control, and Performance measurement and control. In addition, it also covers
employability and technology skills. On successful completion of this course, candidates will be able to:

Knowledge Level of Learning Related PLO
Explain information systems (CK1)
Explain the information, systems and development in technology required for organizations to manage and measure performance		 Understand PK1
Explain cost accounting techniques (CK2) Understand PK1
Cognitive Skills Level of Learning Related PLO
Demonstrate decision-making techniques (CC1)
Demonstrate decision-making techniques such as efficient and effective use of scarce business resources and appreciating the risks and uncertainty to facilitate business decisions controlling risks.		 Apply PC1
Demonstrate budgeting techniques (CC2)
Demonstrate appropriate budgeting techniques, methods for planning and control as well as standard costing systems to measure and control business performance and to identify remedial action.		 Apply PC3
Analyze performance measurement techniques (CC3)
Analyze performance measurement techniques from both financial and non-financial perspectives, considering the challenges of controlling divisionalized businesses and the significance of external factors in evaluation.		 Analyze PC5
Communication, Information Technology, and Numerical Skills Level of Learning Related PLO
Construct Performance Analysis (CCIT1)
Construct Performance Measurement Analysis of a company in Cambodia using financial and non-financial information in a spreadsheet which can be used by the company.		 Create PCIT1
Interpersonal Skills and Responsibilities Level of Learning Related PLO
Communicating for research (CIP1)
Communicate with executive managers during the research and create a performance measurement and analysis for an existing company in Cambodia.		 Apply PIP2

6. TEACHING METHODS

This course is a hybrid of online and in-person classes, class activities and assignment-based output;
simulations; assigned homework and in-class tests will support learning to material covered in class.

7. 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 Weighting for Course Grade
Participation In-class Tests Controlled Case Studies Research Assignment Final Exam
Explain information systems (CK1) 50%       50% 2%
Explain cost accounting techniques (CK2) 10% 50%
Quiz 1		 20%
CCS 1		   30% 11%
Demonstrate decision-making techniques (CC1) 10% 50%
Quiz 1		 20%
CCS 1		   30% 20%
Demonstrate budgeting techniques (CC2) 10% 50%
Quiz 2		 20%
CCS 1		   30% 20%
Analyze performance measurement techniques (CC3) 10%   50%
CCS 2		 20% 30% 20%
Construct Performance Analysis (CCIT1)       100%   25%
Communicating for research (CIP1)       100%   2%

During the course, there are 4 Simulations and Research assignment:

1- Learning Paper on Simulation that will be completed individually:

Controlled Case Study No. 1 on Decision-making Techniques
Controlled Case Study No. 2 on Performance Measurements

2- A Research on Management Accounting System for a small and medium-sized business
based in Cambodia

Work Arrangement: Group of 2
Output format : APA Format
Report The research proposal will be on a pre-formatted excel spreadsheet.
Language : English
Assignment : The assignment is to prepare a performance analysis report on a company in
Cambodia using their financial and non-financial information using the financial
ratio analysis, Balance Card and the Building Block Model as appropriate. A suitable
explanation of the results of this analysis should be provided.

3- Rubrics will be issued for the Research Paper.

8. STUDY PLAN

The course targets the 25 lessons in the study plan below. Each lesson is 3 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

Activity-based Costing

  1. Identify appropriate cost drivers under ABC.
  2. Calculate costs per driver and per unit using ABC.

(CLO: CK2)

Technical Presentation and Class discussion.

Class Activity using Google Classroom and/or Kahoot!

Homework on computation of Absorption costing versus Activity Based Costing using exam-type questions (Constructive Response format) – Google Form via Google Classroom.
3

Target Costing

  1. Derive a target cost in manufacturing and service industries.
  2. Explain the difficulties of using target costing in service industries and suggest how a target cost gap might be closed.

Throughput Accounting

  1. Calculate and interpret a throughput accounting ratio (TPAR) and suggest how a TPAR could be improved.
  2. Apply throughput accounting to a multi-product decision-making problem.[2]

(CLO: CK2)

Technical Presentation and Class discussion.
Class Activity using Google Classroom and/or Kahoot!

Homework on computation of Target Cost and Target Cost Gap using exam-type questions (Constructive Response format) – Google Form via Google Classroom

Technical Presentation and Class discussion.
Class Activity using Google Classroom and/or Kahoot!

Homework on computation of Throughput using exam-type questions (Constructive Response format) – Google Form via Google Classroom
4

Lifecycle Costing

  1. Identify the costs involved at different stages of the life-cycle.
  2. Derive a life-cycle cost or profit in manufacturing and service industries.

Environmental Accounting

  1. Discuss the issues organisations face in the management of environmental costs.
  2. Describe the different methods an organisation may use to account for its environmental costs.

(CLO: CK2)

Technical Presentation and Class discussion.
Class Activity using Google Classroom and/or Kahoot!

Homework on computation of Lifecycle costing and discussing Approaches to Environmental Accounting using exam-type questions (Constructive Response format) – Google Form via Google Classroom
5

Cost volume profit analysis (CVP)

  1. Explain the nature of CVP analysis.
  2. Calculate and interpret the break-even point and margin of safety, contribution to sales ratio, in single and multi-product situations, and demonstrate an understanding of its use.

(CLO: CC1, CCIT1)

Technical Presentation and Class discussion.

Class Activity – Solving questions via class discussion and results are shown through OneNote
Quiz on CVP Analysis

Homework on CVP Analysis using exam-type questions (Constructive Response format) – Google Form via Google Classroom
Technical Paper on CVP Analysis for Self-Study
6

Limiting factor Analysis

  1. Determine the optimal production plan where an organisation is restricted by a single limiting factor, including within the context of make-or-buy decisions.
  2. Formulate and solve multiple scarce resource problems using both linear programming graphs and using simultaneous equations as appropriate.

(CLO: CC1, CCIT1)

Technical Presentation and Class discussion.

Class Activity – Solving questions via class discussion and results are shown through OneNote
7

Limiting factors Analysis (continuation)

  1. Explain and calculate shadow prices (dual prices) and discuss their implications for decision-making and performance management.
  2. Calculate slack and explain the implications of the existence of slack for decision-making and performance management. (Excluding simplex and sensitivity to changes in objective functions)

(CLO: CC1, CCIT1)

Technical Presentation and Class discussion.
Class Activity using Google Classroom and/or Kahoot!
Quiz on Limiting Factor Analysis

Homework on Linear Programming using exam-type questions (Constructive Response format) – Google Form via Google Classroom
Technical Paper on Linear Programming for Self-Study
8

Pricing Decisions

  1. Explain the factors that influence the pricing of a product or service.
  2. Calculate and explain the price elasticity of demand.

(CLO: CC1, CCIT1)

Technical Presentation and Class discussion.
Class Activity using Google Classroom and/or Kahoot!

Technical Paper on Pricing for Self-Study
9

Pricing Decisions (continuation)

  1. Determine prices and output levels for profit maximisation using the demand-based approach to pricing.
  2. Explain different price strategies.

(CLO: CC1, CCIT1)

Technical Presentation and Class discussion.
Class Activity using Google Classroom and/or Kahoot!
Quiz on Pricing Decisions

Homework on Pricing using exam-type questions (Constructive Response format) – Google Form via Google Classroom
Simulation no. 2 – Pricing Decisions
10

Short-term decisions
Relevant cost analysis

  1. Explain the concept of relevant costing.
  2. Identify and calculate relevant costs for specific decision situations from given data.

(CLO: CC1, CCIT1)

Technical Presentation and Class discussion.
Class Activity using Google Classroom and/or Kahoot!

Homework on computation of Absorption costing versus Activity Based Costing using exam-type questions (Constructive Response format) – Google Form via Google Classroom
10

Make or Buy Decisions

  1. Calculate and compare “make” costs with “buy-in” costs and compare in-house costs and outsource costs of completing tasks and consider other issues surrounding this decision.
  2. Apply relevant costing principles in situations involving shut down, one-off contracts and the further processing of joint products.

(CLO: CC1, CCIT1)

Technical Presentation and Class discussion.
Class Activity using Google Classroom and/or Kahoot!

Homework on Make or Buy Decision using exam-type questions (Constructive Response format) – Google Form via Google Classroom
11
12
13

Dealing with risks and uncertainty in decision-making

  1. Suggest research techniques to reduce uncertainty e.g. focus groups, market research.
  2. Explain the use of simulation, expected values and sensitivity.
  3. Apply expected values and sensitivity to decision-making problems.
  4. Apply the techniques of maximax, maximin, and minimax regret to decision-making problems including the production of profit tables.
  5. Interpret a decision tree and use it to solve a multi-stage decision problem.
  6. Calculate the value of perfect and imperfect information.

(CLO: CC1, CCIT1)

Technical Presentation and Class discussion.
Class Activity using Google Classroom and/or Kahoot!

Homework on Pricing using exam-type questions

(Constructive Response format) – Google Form via Google Classroom
Controlled Case Study no. 1 – Short Term Decision Making (including CVP Analysis, Make or Buy decisions and Linear Programming)
Release of the details of the Research Project.
14

Budgetary systems and types of budget

  1. Select and explain appropriate budgetary systems for an organisation, including top-down, bottom-up, rolling, zero-based, activity-based, incremental and feed-forward control.
  2. Indicate the usefulness and problems with different budget types (including fixed, flexible, zero-based, activity-based, incremental, rolling, top-down, bottom-up, master, functional).

(CLO: CC2, CCIT1)

Technical Presentation and Class discussion.
Class Activity using Google Classroom and/or Kahoot!

Homework on Budgeting using exam-type questions (Constructive Response format) – Google Form via Google Classroom
15

Budgetary systems and types of budget (Continuation)

  1. Prepare fixed budgets, rolling budgets and activity-based budgets.
  2. Explain the beyond budgeting model, including the benefits and problems that may be faced if it is adopted in an organisation.

(CLO: CC2, CCIT1)

 Technical Presentation and Class discussion.
Class Activity using Google Classroom and/or Kahoot!
Quiz on Budgeting
16

Quantitative Analysis in Budgeting

  1. Analyse fixed and variable cost elements from total cost data using high/low method.
  2. Apply the learning curve model to a budgetary problem, including calculations on steady states.

(CLO: CC2, CCIT1)

Technical Presentation and Class discussion.
Class Activity using Google Classroom and/or Kahoot!

Homework on Quantitative Analysis using exam-type questions (Constructive Response format) – Google Form via Google Classroom
17

Standard Costing

  1. Outline the methods used to derive standard costs and discuss the different types of cost possible.
  2. Explain and illustrate the importance of flexing budgets in performance management and apply the principle of controllability in the performance management system.

(CLO: CC2, CC3, CCIT1)

Technical Presentation and Class discussion.
Class Activity using Google Classroom and/or Kahoot!

Homework on Variances for simple products using exam-type questions (Constructive Response format) – Google Form via Google Classroom
18

Material Mix & Yield Variances

  1. Calculate, identify the cause of, and explain material mix and yield variances and explain the wider issues involved in changing material mix e.g. cost, quality and performance measurement issues.
  2. Identify and explain the relationship of the material usage variance with the material mix and yield variances.

(CLO: CC2, CC3, CCIT1)

Technical Presentation and Class discussion.
Class Activity using Google Classroom and/or Kahoot!

Homework on Mix & Yield Variances using exam-type questions (Constructive Response format) – Google Form via Google Classroom
18

Sales Mix & Quantity Variances

  1. Calculate, identify the cause of, and explain sales mix and quantity variances.
  2. Identify and explain the relationship of the sales volume variances with the sales mix and quantity variances.

(CLO: CC2, CC3, CCIT1)

Technical Presentation and Class discussion.
Class Activity using Google Classroom and/or Kahoot!
Quiz on Variances

Homework on Sales Mix and Quantity Variances using exam-type questions (Constructive Response format) – Google Form via Google Classroom
19

Planning & Operational Variances

  1. Calculate a revised budget and identify and explain those factors that could and could not be allowed to revise an original budget.
  2. Explain and discuss the manipulation issues involved in revising budgets.

(CLO: CC2, CC3, CCIT1)

Technical Presentation and Class discussion.
Class Activity using Google Classroom and/or Kahoot!

Homework on Planning & Operational Variances using exam-type questions (Constructive Response format) – Google Form via Google Classroom
Simulation no. 3 – Budgeting and Variances
20

Performance Analysis

  1. Analyse and evaluate past performance using the results of variance analysis.
  2. Discuss the behavioural problems resulting from using standard costs in rapidly changing environments.

(CLO: CC3, CCIT1)

Technical Presentation and Class discussion.
Class Activity using Google Classroom and/or Kahoot!

Homework on Performance Analysis using Jamboard or Padlet (short insight on assigned reading).
21

Performance Analysis in private sector organisations

  1. Describe, calculate and interpret financial performance indicators (FPIs) for profitability, liquidity and risk in both manufacturing and service organisations. Suggest methods to improve these measures.
  2. Describe, calculate and interpret non-financial performance indicators (NFPIs) and suggest methods to improve the performance indicated.
  3. Analyse past performance and suggest ways for improving financial and non-financial performance.
  4. Explain the causes and problems created by short-termism and financial manipulation of results and suggest methods to encourage a long-term view.
  5. Explain and interpret the Balanced Scorecard, and the Building Block model proposed by Fitzgerald and Moon.
  6. Discuss the difficulties of target setting in qualitative areas.

(CLO: CC3, CCIT1)

Technical Presentation and Class discussion.
Class Activity using Google Classroom and/or Kahoot!
Quiz on Performance Analysis

Homework on Performance Measurement using exam-type questions (Constructive Response format) – Google Form via Google Classroom

Controlled Case Study no. 2 – Performance Measurements
22
23

Divisional performance and transfer pricing

  1. Explain and illustrate the basis for setting a transfer price using variable cost, full cost and the principles behind allowing for intermediate markets.
  2. Explain how transfer prices can distort the performance assessment of divisions and decisions made.
  3. Explain the meaning of, and calculate, Return on Investment (ROI) and Residual Income (RI), and discuss their shortcomings.
  4. Compare divisional performance and recognise the problems of doing so.

Technical Presentation and Class discussion.
Class Activity using Google Classroom and/or Kahoot!
Quiz on Divisional Performance Analysis

Homework on Divisional Performance Analysis using exam-type questions (Constructive Response format) – Google Form via Google Classroom
24

Performance analysis in not-for-profit organisations and the public sector

  1. Comment on the problems of having non-quantifiable objectives in performance management.
  2. Explain how performance could be measured in this sector.
  3. Outline Value for Money (VFM) as a public sector objective.

(CLO: CC3, CCIT1)

Technical Presentation and Class discussion.
Class Activity using Google Classroom and/or Kahoot!

Homework on Performance Analysis of NFP organisations using exam-type questions (Constructive Response format) – Google Form via Google Classroom
25

External considerations and impact on performance

  1. Explain the need to allow for external considerations in performance management, including stakeholders, market conditions and allowance for competitors.
  2. Suggest ways in which external considerations could be allowed for in performance management.
  3. Interpret performance in the light of external considerations.

(CLO: CC3, CCIT1)

Technical Presentation and Class discussion.
Class Activity using Google Classroom and/or Kahoot!

Homework on Performance Analysis using exam-type questions (Constructive Response format) – Google Form via Google Classroom
25

Management Information Systems & data analytics

  1. Explain the role of information systems in organisations.
  2. Discuss the costs and benefits of information systems.
  3. Discuss the challenges and risks of implementing and using big data and data analytics in an organisation.

Sources of Information

  1. Identify the principal internal and external sources of management accounting information.
  2. Demonstrate how these principal sources of management information might be used for control purposes.

(CLO: CK1)

Technical Presentation and Class discussion.

Class Activity using Google Classroom and/or Kahoot!

Homework using exam-type questions (MCQ format) – Google Form via Google Classroom
27-31 Intensive Exam Reviews

Time for final examinations is not included in the lecture hours above.

9. TEXTBOOKS AND REFERENCES

Textbook

1. Kaplan Publishing, Workbook/Textbook, Performance Management (latest edition)
2. Kaplan Publishing, Practice & Revision Kit, Performance Management (latest edition)

 

References

1. BPP Learning Media, Workbook/Textbook, Performance Management (latest edition)
2. BPP Learning Media, Practice & Revision Kit, Performance Management (latest edition)

Education Resources