International Controlling, 10 credits. (Advanced level) Course code: FEKC43 Responsibility Department: Department of Business Administration Subject: Business Administration Level: C/D Field of education: Social Science The course enters into the International Business Administration and Economics Study Programme at Umeå Business School. The course is a course at the C/D-level in a BSc- or a MSc-degree at Umeå University. Resolution to arrange the course The course is established by the Faculty of Social Science at the University of Umeå and the syllabus is confirmed by the Board of Business Administration in May 25th 2000. 2. Objective and contents The purpose of this course is to give the student an opportunity to gain knowledge of management accounting and control in modern international enterprises. The student will become familiar with the changing competitive environment: Most companies are now competing in a highly competitive global market. At the same time there has been a significant reduction in product life cycles arising from technological innovations and the need to meet incre- asingly discriminating customer demands. To compete successfully in today's highly competitive global environment companies are making customer satis- faction an overriding priority, adopting new management approaches, chan- ging their manufacturing systems and investing in new technologies. These changes are having a significant influence on management accounting and control systems; a number of emerging approaches and practices which seem to provide practical promise in helping management accountants/controllers respond to these challenges will be discussed. One purpose of the course is to examine the accounting function from an international perspective, focusing on the flow of information in multiple currencies, complying with reporting requirements in Sweden and abroad, setting budgets and monitoring performance, and controlling the use of corporate assets through reports and audits. Another purpose of the course is to allow students to gain knowledge, insights and analytical skills related to how corporate managers go about designing, implementing and using planning and control systems to imple- ment strategies: techniques of the management control process, and behav- ioural considerations involved in the use of these techniques. Module 1 Cost Management in an International Perspective (5 credits) Objectives : * The Nature of Management Control Systems * Goal Congruence * Responsibility Centers * The Management Control Process * Control for Differentiated strategies * Cultural Differences in Transnational Organisations * Transfer Pricing * Exchange Rates * Management Control in Service Organisations * Management Control of Projects * Modern Control Methods * The Balanced Scorecard Module 2 Advanced Management Accounting (5 credits) Objectives : * Models for Designing Cost and Performance Systems * Systems for Learning and Improvement * Measuring the Cost of Resource Capacity * Activity-Based Management: Operational Approaches * ABC in Service Industries * Using ABC for Budgeting and Transfer Pricing 3. Prerequisites To gain entry to the course, students are required to have acquired at least 30 credits from the A- and B-level courses in Business Administration, each consisting of 20 credits. Exchange students require a minimum of 40 credits from the A-and B-level courses in Business Administration for entry to the course. It corre- sponds to 60 ECTS-credits in basic courses in Business Administration (Management,Accounting,Financial Investments,Cost Accounting and Marketing) 4. Teaching methods The course comprises conventional lectures, discussions based on a number of relevant cases, and continual work on a project report. We will be discussing current events from Swedish and international business magazines on issues related to international business at the beginning of each class period. Guest lectures might be used in examination. 5. Examination The examination comprises a written examination at the end of the respe- ctive modules, and an assessment of completed cases and project reports. Complementary work on term papers and other compulsory tasks should be completed two weeks after the final date of the module, at the latest. Students who do not pass at the time of the normal written examination will be offered and opportunity to sit a further examination within 2-3 weeks on courses having the normal pace of study. After this, the sub- sequent opportunity for taking the examination arises, as a rule, in connection with the module offered during the subsequent term. Beyond that, additional examination opportunities normally arise every academic year one-week prior to the start of the autumn term. Information on this can be obtained from the Student Counsellor. Reset opportunities are given each August on modules for which there are written examinations held at the end of the spring term. The following grading system is used: Pass with Distinction (Väl godkänd), Pass (Godkänd) and Fail (Underkänd). To achieve the grad Pass with Distin- ction for the course as a whole, the student must have achieved that grade for both modules. When a student has failed an examination on two occations, he or she has a right to have another grading teacher. A written request should be handed to the director of studies no later than two weeks before the next examination opportunity. Oral Examination Oral examinations are conducted in conjunction with those held on the C/D course in Business Administration. Administration: Within two weeks of passing courses in Business Administration to a level of 50 credits, students should report for the oral examination (to the student office). The oral examination is arranged within the normal period of term-time. Examiner: Professor/Senior lecturer Aim and extent: The examination is designed as a verbal exchange between the student and the examiner and should extend across all areas covered by the 50 credit structure for studies in the subject of Business Administration. Students will be expected to display a competence in all fields of the subject, but special weight will be given to the area of specialisation selected at the C/D level. The examination is given individually and should include problem areas of contemporary relevance. Grading: A grading scale of Fail and Pass is used. Students who fail are given further opportunities to sit the examination after discussions with the examiner. Grades on the C/D course are awarded when students have passed all exami- nations and compulsory course elements. 6. Utilisation et cetera In cases where there are applicants from abroad, the course language will be English. Otherwise, parts of the course may be taught in English. Information of language aspects can be obtained from the Student Counsellor. 7. Readings and other material Module 1 Cost Management in an International Perspective (5 credits) Blocher, Chen, Lin: Cost Management. A Strategic Emphasis, Irwin McGraw-Hill 1999 Dept. of Business Administration, Articles on Cost Management in an International Perspective (the student office/Studentexpeditionen) Module 2 Advanced Management Accounting (5 credits) Kaplan, Norton: The Balanced Scorecard. Translating Strategy into Action, HBS Press 1996 Cooper: When Lean Enterprises Collide. Competing Through Confrontation, HBS Press 1995. Kaplan, Cooper: Cost and Effect. Using Integrated Cost Systems to Drive Profitability and Performance, Harvard, 1998. Dept. of Business Administration, Articles on Emerging Issues in Management Accounting and Control (the student office/Studentexpeditionen)