Management Accounting

Part 1 Management accounting - theory and practice: the conventional wisdom - the rise of management accounting, scope of management accounting; planning; cost classifications; control; costing; divisionalized organizations; implied assumptions of management accounting; management accounting practice - the gap between theory and practice, case studies. Part 2 Extension of quantitative models: statistical regression analysis - the least squares regression model, multiple regression; cost-volume-profit analysis - multiproduct C-V-P analysis, multi-product C-V-P analysis under uncertainty; variance investigation models - the decision theory approach, determining probabilities, an illustration, Bayes' Theorem. Part 3 Information costs and benefits: value of information - information costs, an ice-cream manufacturer, the value of imperfect information; information economics - the ice-cream manufacturer's problem, the role of information, Bayes' Theorem, the selection of an information system; simplified models and empirical studies - revisions to the 'complete' analysis, from of model simplification, illustration, implications for empirical work, comments on behavioural accounting research. Part 4 Current and future developments: cost allocation models - the textbook approach, allocations of joint costs, allocations of common costs; agency theory and management accounting - information asymmetry, limitations of the agency model, some general implications of agency theory, specific management accounting implications of agency theory, possible reasons for cost allocations; possible future developments - the dual nature of management accounting; activity-based costing - the modern production environment, illustration, potential and limitations.