Class Central is learner-supported. When you buy through links on our site, we may earn an affiliate commission.

The Open University

Challenges in advanced management accounting

The Open University via OpenLearn

Go to class Write review
Boot.dev Ad

Learn Backend Development Part-Time, Online

Learn More → Coursera Ad

40% Off Career-Building Certificates

Learn More →

Overview

Coursera Flash Sale
40% Off Coursera Plus for 3 Months!
Grab it
This free course, Challenges in advanced management accounting, focuses on strategic management accounting and selected concepts and techniques. It will help you to successfully navigate mid- to long-term challenges to creating sustainable organisations. This OpenLearn course requires a prior understanding of basic management accounting approaches.

Syllabus

  • Introduction
  • Learning outcomes
  • 1 Strategic management accounting
  • 1 Strategic management accounting
  • 1.1 Defining strategic management accounting
  • 1.2 Comparison of strategic and traditional management accounting
  • 2 Strategic customer analysis
  • 2 Strategic customer analysis
  • 2.1 The customer selection decision
  • 2.2 Determining customer profitability
  • 2.2.1 Tracing of costs to customers
  • 2.2.2 Applying Pareto analysis to customer profitability
  • 3 Principles of project appraisal
  • 3 Principles of project appraisal
  • 3.1 Relevant cash flows and sunk costs
  • 3.2 The time value of money, discounting and present value
  • 3.3 Why does the value of money depend on time?
  • 3.3.1 Underlying factors
  • 3.3.2 Comparisons with other rates of return
  • 3.4 Using the WACC as the discount rate for a project
  • 3.5 Problems with using the WACC as the discount rate for a project
  • 3.6 Using the CAPM to find a project-specific cost of equity
  • 3.7 Problems with using the CAPM to find a project-specific cost of equity
  • 3.7.1 Problems with using industry comparisons to estimate business risk and beta value
  • 3.7.2 Problems with financial risk
  • 3.7.3 Other problems with the CAPM calculation
  • 3.8 Using a spreadsheet to model project evaluation
  • 4 Dealing with risk and uncertainty in project appraisal
  • 4 Dealing with risk and uncertainty in project appraisal
  • 4.1 Risk and uncertainty
  • 4.1.1 Attitudes towards risk
  • 4.1.2 Attitudes towards uncertainty
  • 4.2 Simple adjustments to deal with increased risk
  • 4.2.1 Risk and the discount rate
  • 4.2.2 Risk and the payback period
  • 4.2.3 Risk and time delay
  • 4.3 Using probability and future cash flows to deal with risk
  • 4.3.1 Estimating future cash flows
  • 4.3.2 Calculating probability-weighted cash flows instead of increasing the discount rate
  • 4.3.3 Estimating probabilities for scenarios instead of increasing the discount rate
  • 4.4 Modelling sensitivity analysis
  • 4.5 The value of information
  • 5 End-of-course exercises
  • 5 End-of-course exercises
  • Conclusion
  • Glossary
  • References
  • Acknowledgements

Tags

Reviews

5.0 rating, based on 1 Class Central review

4.9 rating at OpenLearn based on 10 ratings

Start your review of Challenges in advanced management accounting

  • Profile image for Enrique Enriquez
    Enrique Enriquez @EEnriquez
    17
    Having completed this course, I found it to be a rigorous and intellectually stimulating exploration of advanced management accounting. The content accurately matched its descriptions, providing a deep dive into strategic management accounting, sophisticated customer profitability analysis using activity-based costing, and the nuanced principles of project appraisal under risk and uncertainty. The estimated completion time was a precise forecast of the dedicated effort required.
Go to class

Never Stop Learning.

Get personalized course recommendations, track subjects and courses with reminders, and more.

Sign up for free
Someone learning on their laptop while sitting on the floor.