The Business Planning Model:
An Innovative Approach to
Introductory Management Accounting

Noah P. Barsky and Anthony H. Catanach, Jr.

Introductory management accounting courses traditionally emphasize cost accounting topics rather than the critical role that information plays in decision-making. Recent calls from academic and professional organizations have suggested that creatively re-designing the introductory management accounting course may better prepare students for today’s competitive business marketplace and may stimulate interest in majoring in accounting. This session describes a fundamentally different teaching approach for the introductory management accounting course: the Business Planning Model (BPM). The BPM reengineers the managerial principles course in four ways: (1) it adopts a broader business perspective that addresses strategy, risk, and process; (2) it de-emphasizes some cost accounting topics that the profession finds less critical today; (3) it delivers and reinforces course content using a semester-long business planning simulation; and (4) it uses basic consumer retail and service industry examples as contexts to leverage student business experiences. Students report that the BPM gives them an appreciation for the value of information, improves certain key business skills, and increases their interest in accounting as a field of study. Observations and feedback provided by practicing professionals suggest that the course objectives, structure, and delivery approach are consistent with current market expectations in accounting and business consulting.

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