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MSA 6603 Cost Analysis, Profit Planning & Control

MSA 6601

Incorporate strategic planning into organizational structure.

Format: Online
Duration: 8 weeks

In MSA 6603 Cost Analysis Profit Planning and Control, you will examine management control systems as tools to implement and track strategy. You will also see how management control systems can influence human behavior in organizations. You will use “responsibility centers” to impact the control process and you will analyze their underlying control techniques and various evaluation metrics. The "profit center" approach is one of the most widely employed evaluation techniques to measure performance. You will gain a clear understanding of its strengths and weaknesses. You will also look at a number of techniques used to measure profitability.

There is an aggressive drive to lower costs from world-wide sources, and the concept of inter-company "transfer prices" is a key management tool utilized to move products and services throughout the decentralized organizational structure. You will address the accounting problems that arise from decentralization and see how to establish a sound inter-company transfer price structure. The practice of EVA (economic value added) compensates executives and evaluates corporate performance. You will analyze the strengths and weaknesses of EVA and ROI (return on investment) as evaluation tools used to make far-reaching strategic decisions. You will complete an in-depth review of strategic planning and the resulting budget process.

What You Will Learn in MSA 6603

While the goals of a strategic plan may be easily attainable on paper, in reality, organizations need to be equipped to use variance analysis to course-correct trends that do not relate the strategic goals. A successful performance measurement system should implement the chosen corporate strategy. In doing so, the process of limiting the influence of various financial control systems on this process will become apparent. You will also become familiar with how to implement a performance measurement system. You will dissect issues surrounding management compensation and agency theory, the practice of using contracts and incentive plans to motivate employees. As you consider how business unit strategy relates to strategic planning issues such as "build", "hold,” and "harvest,” you will also examine the positive impact this top management style can have on the management control function.

Sample Assignment

Using a case study about a major U.S. retailer for reference, you will write a two-page paper analyzing and explaining the role the company’s organizational systems play in executing its business strategy.

Service organizations are one of the fastest growing segments of the U.S. economy. You will examine the main characteristics of these entities, including no inventory, difficult to control quality, highly labor intensive, and usually multi-unit operations. There will be consideration of the management control systems and performance measurement techniques that can be employed in service organizations as well as in professional organizations. Other sectors that have unique management control needs are financial services, healthcare and non-profit organizations. You will explore the challenges each faces in balancing its operational needs with government regulations and board of trustees’ oversight. You will also examine the impact of culture, tariffs, foreign exchange, taxation and governmental controls on the business strategies of multinational organizations. The management control of large, complex projects can, at times, be unwieldy. You will gain an appreciation for efficient project management solutions and how they are used to plan, schedule, cost and track a project.

Course Topics

Throughout this course, weekly topics may include but are not limited to:

  • The Nature of Management Control Systems and Understanding Strategies
  • Responsibility and Profit Centers
  • Transfer Pricing and Measuring and Controlling Assets Employed
  • Strategic Planning and the Budget Process
  • Analyzing Financial Performance Reports and Performance Measurement
  • Management Compensation and Controls for Differentiated Strategies
  • Service and Multinational Organizations
  • Management Control of Projects

Course Learning Outcomes

Upon successful completion of MSA 6603 you will be able to:

  • Explain strategic planning, budget preparation, and performance measurement systems.
  • Apply strategy to various forms of organizational structures in terms of responsibility, profit, and marketing centers.
  • Distinguish the nuances of organizational transfer pricing.
  • Apply the concepts related to measuring and controlling assets.
  • Design various management control systems for service and multinational organizations relative to senior management style.

Request More Information Today

To learn more about the online Master of Business Administration curriculum from Benedictine University, including Cost Analysis Profit Planning and Control, call (866) 295-3104 to speak with a program manager or request more information.

Course content and outcomes may vary and are subject to change without notice.