10913 Advanced Managerial Accounting for Accounting Students 1

Credits: 6 advanced credits in Accounting

Prerequisites: 36 credits, including Managerial Accounting for Students of Accounting or Cost and Managerial Accounting. Students must also fulfill all English requirements and take bibliographic instruction in the Library.

Authors: Yoram Eden, Boaz Ronen, Nitza Geri. The materials include It Costs Me More: Decision Making, Cost Accounting and Value Creation, by Y. Eden and B. Ronen (Hod-Ami, 2003, Hebrew).

The course combines managerial accounting systems with innovative managerial approaches, and focuses on increasing the value of organizations.

Objectives: To analyze the impact of cost accounting on managerial decision-making and organization performance; To present costing methodologies and innovative managerial approaches, and evaluate their effectiveness; To provide tools which support managerial decisions regarding pricing, product or service mix selection, outsourcing, investment and more.

Topics: Introduction – the lost relevance of traditional cost accounting; Innovative managerial approaches, costing and decision-making; Performance measures and the Theory of Constraints (TOC); Activity-Based Costing/Management (ABC/M) – a critical evaluation; Cost-Volume-Profits analysis; Operational control and variance analysis; The learning curve; Decision-making and the value of information; Cost accounting as a planning and control tool; Global Decision-Making Methodology (GDM); Profit centers and transfer prices; Value creation; Concluding case study.

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1Students who are taking this course in the framework of a program of study toward a degree in Accounting with a Division of Studies in Economics must write a seminar paper in this course.