ACCOUNTING AND MANAGEMENT CONTROL

The course aims to develop students’ understanding of management control system in the context of strategy implementation, performance measurement and managerial decision-making. The course examines management control activities in relation to the accounting system and within the organizational framework of the firm. Furthermore, the course provides an in-depth analysis of key technical instruments used to drive the accountability of responsibility centers, as well as methods for product cost, margin and financial return analysis, including the Activity Based Costing. It also addresses the reporting of both financial and non-financial Key Performance Indicators – including the Balanced score-card method - with a focus on ESG metrics.

• A basic knowledge of accounting and financial reporting. • A basic understanding of organizational structures and operating processes in a manufacturing company.

• A comprehensive knowledge of the processes and instruments of management control. • An initial ability to apply these tools to the activities of manufacturing, R&D, sale and marketing within a complex and integrated business unit.

Strategic Control, Management Control & Operation Control. The Management Control Function: organization, process and instruments. Its link with the Accounting System and BI tools. Accountability in a corporate organization: the centers of responsibility (cases). The instruments of management control system and their adaptation to the company's strategy and profile. Cost classification, cost analysis and standard cost. Use of Contribution Margin and Break-even Point analysis for decision-making (case). Different methods to compute the full cost of a product (case). Activity Based Costing (case and exercises) The variances analysis for revenues, costs and margin (exercises). Controlling R&D activities. Measuring financial return: profitability, capital structure and ROIC (exercises). The Reporting based on Critical Success Factors. Key Performance Indicators: financial and non-financial measures (reading a tableau de bord). The Balanced Score Card Case: adapting the management control system to the strategic and functional profile of the company.

REFERENCE BOOK Carlo M Ferro “Planning and Control: executing strategy to create shareholders value” – ENGLISH EDITION September 2026 -LUP, chapters 2,3,5,6,7,8,10,11,12,14,15,16,18,19. RECCOMENDED READING N Anthony The Management Control Function - Harvard Business School Press H. Thomas Johnson Robert S Kaplan Relevance Lost, the rise and fall of management accounting, Harvard Business School Press, chapters 2,3,4,5, 6, 11. Robert S Kaplan, David P Norton Balanced Scorecard Harvard Business School Press chapters from 1 to 7 DECK OF LESSONS, CASES AND EXERCISES DISTRIBUTED IN CLASS

The course will be a combination of lectures, problem-solving, case studies, at home assignments, interactive in-class discussions of company's reports and weekly tutorials with the Teaching assistant (optional) An interim test and a case to be prepared in group and discussed in class will be relevant to the final valuation. A dry-run of final test will be done with the TA.

Attending lessons students: 15% Individual Test: case on centers of responsibility 20% Group assignment: case Anselmo Srl on full product cost 65% Final written exam: multiple choices questions and 2 quick computation exercises. Authorized non attending lessons students: Witten test on the whole program.

Ability and interest to research on this topic, motivation – based on final grade or active participation to the class – and original content. The decision concerning the supervision of the thesis will be taken upon the presentation of index of the thesis as well as structure and method of research.