COMM 454 - Accounting for Management Control and Incentives

This course is designed to help students to:

  • develop a framework for understanding management control systems using the concepts of the three-legged stool, agency theory, and Merchant’s typology of controls.
  • examine why there are differences in management control systems for different entities.
  • understand elements of management control systems that exist in today’s businesses and how these elements inter-relate. Specific topics include performance evaluation, balanced scorecard, variance calculations and systems, budgeting, and transfer pricing.
  • develop expertise in analyzing and critiquing management control system elements.

Learning objectives

Upon successful completion of this course, students will have the knowledge and skills to:

  • define, calculate, and analyze common tools used in management control systems including variances, return on investment, residual income, economic value added, balanced scorecard, and transfer pricing.
  • provide well-reasoned assessments of a particular management control system making use of frameworks and vocabulary associated with agency theory, Merchant’s typology of controls and the organizational three legged stool.
  • recommend changes to management control systems and provide a logical basis for these recommendations.
  • analyze a “real” management control system identified from a situation that the student is familiar with in the form of a written and oral report.

Prerequisite: COMM 294.

Course credits:

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