Management Accounting
Teacher
Dr.Girija Nandini
Category
Core Courses
Course Attendees
Still no participant
Course Reviews
Still no reviews
Course Name : Management Accounting
Code(Credit) : CUTM 1216(4+0+2)
Course Objectives
• To acquaint students with role of Management Accounting in planning, control and decision-making.
• To provide an understanding of methods of cost accounting and its relevance in management decision making
Course Outcomes
After completion of the course students will be able to
CO1 Apply and improve the operations of organizations through the application of management accounting techniques
CO2 Apply relevant costing methods to analyze specific business issues
CO3 Develop plan and budgets for different business
| COS | COURSE OUTCOMES | MAPPING COS WITH POS (High-3; Medium-2; Low-1) |
| CO1 | Apply and improve the operations of organizations through the application of management accounting techniques | PO1(3)PO2(3) PO3(3),PO6(2) |
| CO2 | Apply relevant costing methods to analyze specific business issues | PO1(3)PO2(3) PO3(3)PO6(2) |
| CO3 | Develop plan and budgets for different business
|
PO1(3)PO2(3) PO3(3)PO6(2) |
Course Syllabus
Module I
Nature, Scope of Management Accounting: Meaning, definition, nature and scope of Management Accounting; Comparison of Management Accounting with Cost Accounting and Financial Accounting. Cost concepts: Meaning, Scope, Objectives, and Importance of Cost Accounting; Cost, Costing, Cost Control, and Cost Reduction; Elements of Cost, Components of total Cost, Cost Sheet. Classification of Costs: Fixed, Variable, Semi variable, and Step Costs; Product, and Period Costs; Direct, and Indirect Costs; Relevant, and Irrelevant Costs; Shut-down, and Sunk Costs; Controllable, and Uncontrollable Costs; Avoidable, and Unavoidable Costs; Imputed / Hypothetical Costs; Out-of-pocket Costs; Opportunity Costs; Expired, and Unexpired Costs; Conversion Cost. Cost Ascertainment: Cost Unit and Cost Center. Introduction to Overhead allocation, Overhead apportionment, and Overhead absorption.
Module II
Cost-Volume-Profit Analysis: Contribution, Profit-Volume Ratio, Margin of safety, Cost Break-even Point, Composite Break-even Point, Cash Break-even Point, Key Factor, Break even Analysis. Relevant Costs and Decision Making: Pricing, Product Profitability, Make or Buy, Exploring new markets, Export Order, Sell or Process Further, Shut down vs. Continue.
Module III
Budgets and Budgetary Control: Meaning, Types of Budgets, Steps in Budgetary Control, Fixed and Flexible Budgeting, Cash Budget. Responsibility Accounting: Concept, Significance, Different responsibility centers, Divisional performance – Financial measures, Transfer pricing.
Module IV
Standard Costing and Variance Analysis: Meaning of Standard Cost and Standard Costing, Advantages, Limitations and Applications; Material, Labor, Overhead and Sales variances. Introduction to Target Costing, Life Cycle Costing, Quality Costing, and Activity based Costing.
Projects:
1. Project on preparation of cost sheet of different companies
2. Project on managerial decision making
3. Project on preparation of budgets of companies
4. Project on activity based costing
Readings:
1. C.T. Horngren, Gary L. Sundem, Jeff O. Schatzberg, and Dave Burgstahler: Introduction to Management Accounting, Pearson
2. M.N. Arora: A Textbook of Cost and Management Accounting, Vikas Publishing House Pvt. Ltd.
3. M.Y. Khan, and P.K. Jain, Management Accounting: Text Problems and Cases, McGraw Hill Education (India) Pvt. Ltd.
4. S.N. Maheshwari, and S.N. Mittal, Cost Accounting: Theory and Problems, Shree Mahavir Book Depot (Publishers)
Session Plan
Session 1
Nature, Scope of Management Accounting: Meaning, definition
Management accounting , Scope
Management Accounting
Session 2
Comparison of Management Accounting with Cost Accounting and Financial Accounting
Cost accounting
Management Accounting Introduction
Session 3
Cost concepts: Meaning, Scope, Objectives, and Importance of Cost Accounting
Cost concept
Session 4
Cost, Costing, Cost Control, and Cost Reduction
Session 5
Elements of Cost, Components of total Cost
: Presentation by students
Elements of cost
Session 6
Classification of Costs: Fixed, Variable, Semivariable
Classification of cost
Classification of cost
Session 7
Preparation of cost sheet
Cost sheet format
Cost sheet
Session 8
Preparation of cost sheet
Session 9
Presentation by students - Project on preparation of cost sheet of different companies
Session 10
Project on preparation of cost sheet of different companies : Presentation by students
Session 11
Step Costs; Product, and Period Costs; Direct, and Indirect Costs
Session 12
Relevant, and Irrelevant Costs; Shut-down, and Sunk Costs
Relevant & irrelevant cost
Session 13
Controllable, and Uncontrollable Costs; Avoidable, and Unavoidable Costs
Session 14
Presentation by students - Imputed / Hypothetical Costs; Out-of-pocket Costs; Opportunity Costs
Session 15
Presentation by students - Expired, and Unexpired Costs; Conversion Cost
Session 16
Cost Ascertainment: Cost Unit and Cost Center
Session 17
Introduction to Overhead allocation, Overhead apportionment, and Overhead absorption
Absorption costing
Cost Allocation
Session 18
Overhead apportionment, and Overhead absorption
Session 19
Project presentation by students
Session 20
Project presentation by students
Session 21
Cost-Volume-Profit Analysis: Contribution, Profit-Volume Ratio
CVP analysis
CVP analysis
Session 22
Cost Break-even Point, Composite Break-even Point
Break even analysis
Session 23
Cash Break-even Point
BEP
Session 24
BEP - Presentation by students
Session 25
Key Factor, Break-even Analysis
Break even analysis
Session 26
Presentation by students
Session 27
Relevant Costs and Decision Making
Relevant cost for decision making
Session 28
Pricing decision in marginal costing
Session 29
Presentation by students
Session 30
Product Profitability, make or buy decision
Make or buy decision
Make or buy
Session 31
Managerial decision for exploring new markets
Session 32
Sell or Process Further project - Presentation by students
Session 33
Managerial decision for Shut down vs. Continue
Shutting down decision on the basis of price
Session 34
Project presentation by students
Session 35
Project presentation by students
Session 36
Budgets and Budgetary Control: Meaning
Budget
Budget & Budgetary control
Budgeting
Importance of budgeting
Session 37
Types of Budgets
Types of budget
Master budget
Types of budget
Session 38
Steps in Budgetary Control
Types of budget
Steps in budgetary control
Steps in budgetary control
Session 39
Presentation by students
Session 40
Fixed and Flexible Budgeting
Fixed and flexible budget
Fixed and flexible budget
Session 41
Cash Budget
Cash budget in Excel
Cash budget
Cash budget
Session 42
Responsibility Accounting: Concept
Responsibility accounting
Responsibility accounting
Session 43
Significance of responsibility center - Presentation by students
Session 44
Different types of responsibility centers
Session 45
Divisional performance
Performance evaluation and responsibility center
Session 46
Financial measures
Session 47
Transfer pricing
Transfer Pricing
Session 48
Project presentation by students
Session 49
Project presentation by students
Session 50
Project presentation by students
Session 51
Standard Costing and Variance Analysis
Standard Costing
Standard cost and variance
Session 52
Meaning of Standard Cost and Standard Costing
Standard costing
Session 53
Advantages, Limitations and Applications
Advantages & Limitations of Standard costing
Standard cost & variance analysis
Session 54
Presentation by students
Session 55
Material variances
Material variance
Session 56
Labour variance
Problems on variance analysis
Session 57
Overhead variance
Session 58
Sales variances
Session 59
Presentation by students
Session 60
Introduction to Target Costing
Target costing
Target Costing
Session 61
Life Cycle Costing
Life cycle costing
Session 62
Quality Costing
Quality costing
Session 63
Activity based Costing
ABC
Activity Based costing
Session 64
Project presentation by students
Session 65
Project presentation by students
Case Studies
Case Studies
Our Main Teachers
Dr.Girija Nandini presently working as an Associate Professor (Finance) in the School of Management Studies, CUTM, Bhubaneswar. Completed her MBA from Biju Pattnaik University of Technology having specialization in Finance. She has completed her M.Com from Ravenshaw University. Done her Ph.D. entitled “Indian Stock Market: Study of seasonal effects in the present era” from Utkal […]