Professional Documents
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Course Introduction
Managerial Accounting (MBA)
MBA – Evening Spring – 2011
S.P. Jain, Cost Management Accounting, K.L. Navang Kalyani Publisher, New Delhi.
Matz & Usury, Cost Accounting, 12th Edition, South Western Publishing Co., Dallas.
This course covers basic materials on terminology and ideas on cost behaviour, cost-volume
profit relationships, activity-based costing, job-order costing, process costing, budgeting, variance
analysis, income effect of direct costing versus absorption costing, and simple non-routine
decision making.
Course Objectives:
This course provides an introduction to the fundamental concepts of managerial accounting. The
focus of the course will be on the accounting function internal to organizations. Managerial
accounting is concerned with the analysis of and accounting for costs, managerial planning,
decision making and control. The nature and behaviour of costs and the usefulness and limitations
of accounting data for these purposes are studied. Managerial accounting, while providing some
data for financial statements prepared for external users, has as its primary purpose the
development and presentation of information useful to internal management for decision making,
planning and control.
The learning objectives for the students would be to learn and understand as to how:
1. To provide information for decision making and planning and proactively participating as
part of the management team in the decision making and planning processes.
2. To assist managers in directing and controlling operations.
3. To motivate managers and other employees towards the organization's goals.
4. To measure the performance of activities, subunits, managers and other employees with
the organization.
5. To assess the organization's competitive position and working with other managers to
ensure the organizations long run competitiveness in its industry.
You are required to work hard and use critical and analytical approach towards this subject of
Managerial Accounting. This subject will certainly equip you with essential management
accounting techniques, which will help you execute projects with professional acumen cum
managerial approach. Therefore, your class participation and full attendance is necessary for
complete understanding of the whole concept of Managerial Accounting. Professionalism and
dedications are recommended! There is a need to follow ethical standards - education is our
primary goal here, your willingness coupled with endeavour to learn will earn you a good grade.
Anyone having difficulties should contact me personally.
Attendance will NOT be over-written once taken unless you can prove circumstances beyond
your control that prevented you from joining the class in time. Your attendance will be used for
determining a portion of class participation grade.
Please follow the basic ethics of class participation, any misbehaver in terms of late coming,
conduct, attendance, and use of mobile phones during the lectures will not be tolerated.
While completing the assignments/ homework/ quizzes, please use only one side of the page
(standard for this class is 12 font, times new roman, single spaced along with title sheet
containing your name, roll#, section, and date of submission.) a good presentation is essential and
will earn you better marks. Ensure that your work is prepared neatly and logically.
I will accept homework by the start of class on the day it is due, unless stated otherwise. Make it
your business to do your work on time and hand it on time. ASSIGNMENTS SUBMITTED
LATE WILL NOT GET YOU FULL MARKS. It is your duty to ensure that you produce
your original work. Otherwise, I will be inclined to use negative marking and appropriate
disciplinary action.
Grading:
The final grade for the course will be determined based on the total points accumulated in the
below areas:
* Three bonus marks will be given to the team with best project solution (including report and
presentation.)
Mid-Term Exam
There will be a mid-term exam that will include questions on course content covered up to that
time. It will contain both objective and descriptive type of questions.
Final Exam
There will be a comprehensive final exam at the end of the semester on which students will be
tested on the course contents covering full syllabus. This final exam will consist of 40% marks
and the questions asked will include both objective and descriptive type of questions.
A team project from a real world situation will be given to you so that you can use your
knowledge of the subject and correlate it with your studies. What is expected that you cover all
the aspects of Managerial Accounting in your project report and deliver a class presentation for
your solution. You are required to use Microsoft Office to prepare your project
report/presentation/solution. You are also required to submit a hard copy of the presentation
before starting your actual presentation. Questions answers session will take place at the end of
the presentation to which entire team is required to take part in. Related goals of the team project
is to include the development of skills in teamwork, intra-group dynamics, professional report
writing (i.e. proper layout, grammar and spelling), and report presentation/public speaking. The
details of the project and structure of the group will be given later.
All group members must also complete a confidential peer evaluation that measures the
performance of each group member. Students found to have significantly lower evaluations from
their peers may have their case study analysis/project marks downgraded proportionately.
Chapter – 4
Process Costing and Hybrid Product-Costing Systems;
Equivalent Units. Actual Costing versus
Normal Costing. Process Cost Sheet.
Wk 5 13-3-11 Weighted Average Method of Process
Costing. Hybrid Product Costing System;
Operational Costing for Bateh
Manufacturing Processes.
Week
Lec. Date Topic Reference Material
No
class)
Profit Planning, Activity-Based Budgeting, and e-
Budgeting; type of Budgets’ the master budget; Chapter – 9
operational budgets; capital expenditure budget; &
wk 11 24-4-11 budgeted financial Statements; Using Activity based Chapter – 11
Budgeting to prepare the Master budget, cash
budgets’ zero based budgeting; budgetary slack &
padding of the budgets; flexible budgeting
Standard Costing, Operational Performance Chapter – 10
Measures, and the Balanced Scorecard’ management
by exception; methods of setting standards; cost
wk 12 1-5-11 variance analysis; significance of cost variances;
controllability of costs variances, standard costs &
product costing