70281 - Cost Analysis Master Degree

Course contents

Learning Objectives of the Course

 

Cost analysis and cost management are essentially problems of economic rationality. The same economic rationality which is the basis of business practice and decision making process in enterprises. Cost management develops itself in an economic judgment environment but also in coherence with the business reality in which it grows. Managers need to rely upon different classifications of costs for different purposes such as preparing external financial reports, predicting cost behavior, assigning costs to cost objects, and making business decisions.

The main purpose of this course is to understand how to produce cost information to support decision making processes and control systems; to understand how to use and interpret different cost information. In fact, cost objects and cost information need to be congruent with the utility for decision makers and for the firm.

 

 

Managerial Accounting Topics

 

Some introductory concepts: ·          the conceptual network;

• management accounting and information systems;
• classifications of costs and main cost categories;
• structure and establishment of cost objects and cost values.

  Classifications of manufacturing costs and non-manufacturing costs

 

• Understand the differences between variable costs and fixed costs in order to better understand cost behavior which refers to how a cost will react to changes in the level of activity within a relevant range;
• Understand the difference between direct and indirect cost: cost classifications for assigning costs to cost objects;
• Controllable costs versus non-controllable costs.

  Different configurations in manufacturing costs

           

• cost values for the main resources in manufacturing: elements of costs namely direct materials, direct labor, and manufacturing overhead;
• allocation of indirect costs;
• cost accounting for responsability centers.

 

F ull costing :

 

-           full costing: single or multiple predetermined overhead rates;

-           compute different predetermined overhead rates;

-           full costing and cost centers;

-           financial accounting and managerial accounting;

 

Direct costing :

 

-           contribution margin;

-           profitability analysis of products;

-           products mix decisions

-           make or buy decisions;

  L'activity-based costing:

 

-           activity and process;

-           cost-activity-process drivers;

-           activity contribution margin.

Readings/Bibliography

Textbooks (any alternative book has to be agreed with the teacher):

 

1.       Paolo Bastia, Analisi dei costi. Evoluzione degli scopi conoscitivi, CLUEB, Bologna, 1996.

2.       Massimiliano Zanigni, L'Activity-Based Costing in atto, CEDAM, Padova, 2004.

 

 

Recommended Readings (any alternative book has to be agreed with the teacher):

 

-           Lino Cinquini, Strumenti per l'analisi dei costi - Vol. I, Fondamenti di Cost Accounting, Giappichelli, Torino, III Edizione, 2008.

-           Paola Miolo Vitali, Strumenti per l'analisi dei costi, Vol. II, Approfondimenti di Cost Accounting, Giappichelli, Torino, III Edizione, 2010.

-           Luigi Brusa., Contabilità dei costi, Giuffré, Milano, 1995 (o edizioni successive).

 

 

Case studies and other material for exercise will be given during the course.

 

Assessment methods

Examination arrangements:

A written examination is required. A next spoken examination is optional to integrate the mark obtained in the written examination.

Office hours

See the website of Massimiliano Zanigni