Management Accounting

Teacher

Dr.Girija Nandini

Category

Core Courses

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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

Difference between MA,FA & CA

Difference between FA and MA

Session 3

Cost concepts: Meaning, Scope, Objectives, and Importance of Cost Accounting
Cost concept

SCM

Introduction to cost accounting

Session 4

Cost, Costing, Cost Control, and Cost Reduction

Cost control & 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

Cost classification

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

Product cost & period cost

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

Marginal costing

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

Session 38

Session 39

Presentation by students

Session 40

Session 41

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

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

Session 54

Presentation by students

Session 55

Material variances
Material variance

Session 56

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

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 […]