Management Accounting

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Management Accounting

This course covers basic materials on terminology and ideas on cost behavior, 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. In this course, the motive is developing a basic understanding of the 1) Costing methods, 2) Managerial accounting concepts and reports that help managers make planning decisions, 3) Decision facilitating and decision enhancing roles of accounting information, more importantly, this course will help you develop problem-solving skills, whereby 4) You will be able to apply your understanding of managerial accounting concepts to solve business problems in the real world. This course will help all students (whether or not you are aiming for an accounting career) understand what accounting can do for decision makers, and its use for planning and control functions.

BUS 201- Introduction to Business, MGT 201- Principles of Management and ACN 201- Accounting Principles

  1. It is the student’s responsibility to gather information about the assignments and covered topics during the lectures missed. Regular class attendance is mandatory. Points will be taken off for missing classes. Without 70% of attendance, sitting for final exam is NOT allowed. According to IUB system students must enter the classroom within the first 20 minutes to get the attendance submitted.
  2. The date and syllabus of quiz, midterm and final exam is already given here, however, announcements will be given ahead of time. There is NO provision for make-up quizzes.
  3. The reading materials for each class will be given prior to that class so that student may have a cursory look into the materials.
  4. Class participation is vital for better understanding of sociological issues. Students are invited to raise questions.
  5. Students should take tutorials with the instructor during the office hours. Prior appointment is required.
  6. Students must maintain the IUB code of conduct and ethical guidelines offered by the School of Business.
  7. Students must refrain from any type of cheating and/or plagiarism in a course. Any student acting otherwise will receive an “F” grade in the course. School of Business, IUB, maintains a zero tolerance policy regarding violation of academic integrity.
  1. Students are not allowed to keep bags, handouts, books, mobile phones, smart watches or any other smart electronic devices with them during any exam. Students are advised to keep everything in the front of the class room before the exam starts. Please note that, just carrying any smart electronic devises (even if the devise is turned off or put it in silent mode) during the exam will be considered as “cheating”. Moreover, during the exam, anything written on hand palms (or anywhere else) and carrying paper materials (whatever is written) will be considered as “cheating”. Any sorts of “cheating” will result in an “F” grade with no exception. During the exam, students are only allowed to carry pen, pencil, eraser, sharpener, ruler, highlighter and calculator in a clear plastic bag.
Type of Evaluation Nos. Weight
Class Attendance and Participation 100% 5
Quiz (Best two will be counted) 5 15
Project and Presentation 01 10
Midterm Exam 01 30
Final Exam 01 40
Total   100%

[Class attendance is mandatory; failure to do so may deduct the final marks]

The following chart will be followed for grading. This has customized form the guideline provided by the school of Business.

 

A A- B+ B B- C+ C C- D+ D F
90-100 85-89 80-84 75-79 70-74 65-69 60-64 55-59 50-54 45-49 0-44

* Numbers are inclusive

The course will be based mostly on the following books [some other books and journals may be referred time to time]:

 

  • Managerial Accounting” by Garrison, Noreen and Brewer, 15th Edition, McGraw-Hill Irwin

 

Link to virtual learning system: http://103.254.86.4/sb/ (School of Business – Faculty name- Login as a guest- password is 1234).

Sessions Topic Learning Outcomes Readings
Session -1 Introduction of the course, course content, class rules, lecture format, assignment, exam policy and grading system 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 behavior 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 Course Outline and Problem listing sheet detailing the problems to be solved from each chapter
Session -2 Nature of Management Accounting

 

The work of the management and need for managerial accounting

 

Relevant problem solving from text

Garrison and Noreen, Chapter 1

 

Pages 1-26

 

Relevant Handouts available from virtual learning system

 

Session -3 Nature of Management Accounting

 

Comparison of financial and managerial accounting

 

Relevant problem solving from text

Garrison and Noreen, Chapter 1

Pages 1-26

 

Relevant Handouts available from virtual learning system

Session -4 Nature of Management Accounting The changing of business environment and professional ethics

Relevant problem solving from text

Garrison and Noreen, Chapter 1

 

Pages 1-26

 

Relevant Handouts available from virtual learning system

Session -5 Cost Terms and Cost Concepts General cost classification

Product cost Vs period cost

Relevant problem solving from text

Garrison and Noreen, Chapter 2

 

Pages 27-82

 

Relevant Handouts available from virtual learning system

Session -6 Cost Terms and Cost Concepts

 

Cost classification on financial statements Product cost flow

 

Relevant problem solving from text

Garrison and Noreen, Chapter 2

 

Pages 27-82

 

Relevant Handouts available from virtual learning system

Session-7 Cost Terms and Cost Concepts

 

Prediction cost behavior and decision making

 

Relevant problem solving from text

Garrison and Noreen, Chapter 2

 

Pages 27-82

 

Relevant Handouts available from virtual learning system

Session -8 Cost Behavior and CVP analysis

 

 

 

Quiz 1

 

Types of cost behavior patterns

The analysis of mixed costs and the contribution format of income statement

 

Relevant problem solving from text

 

 

Knowledge of Cost Terms and Cost Concepts

Garrison and Noreen, Chapter 5

 

Pages 187-232

 

Relevant Handouts available from virtual learning system

Session -9 Cost Behavior and CVP analysis CVP relationship

 

 

Relevant problem solving from text

Garrison and Noreen, Chapter 5

 

Pages 187-232

 

Relevant Handouts available from virtual learning system

Session -10 Cost Behavior and CVP analysis Break even analysis

The concept of sales mix

 

Relevant problem solving from text

Garrison and Noreen, Chapter 5

 

Pages 187-232

 

Relevant Handouts available from virtual learning system

Session -11 Absorption and Variable Costing

 

Quiz 2

 

 

Overview of absorption and variable costing

 

Relevant problem solving from text

 

 

Knowledge of CVP Analysis

Garrison and Noreen, Chapter 6

 

Pages 233-285

 

Relevant Handouts available from virtual learning system

Session -12 Absorption and Variable Costing

 

Effect of changes in production on net operating income

 

Relevant problem solving from text

Garrison and Noreen, Chapter 6

 

Pages 233-285

 

Relevant Handouts available from virtual learning system

Session -13 Absorption and Variable Costing Choosing a costing method

 

Relevant problem solving from text

Garrison and Noreen, Chapter 6

 

Pages 233-285

 

Relevant Handouts available from virtual learning system

Session -14 Midterm Exam  CHAPTERS 1,2,5 and 6 Garrison and Noreen, Chapter 1,2,5 and 6
Session -15 Profit Planning

 

Basic framework of budgeting

 

Relevant problem solving from text

Garrison and Noreen, Chapter 8

 

Pages 342-391

 

Relevant Handouts available from virtual learning system

Session -16 Profit Planning

 

Preparing the master budget

 

Relevant problem solving from text

Garrison and Noreen, Chapter 8

 

Pages 342-391

 

Relevant Handouts available from virtual learning system

Session -17 Profit Planning

 

Preparing the master budget

 

Relevant problem solving from text

Garrison and Noreen, Chapter 8

 

Pages 342-391

 

Relevant Handouts available from virtual learning system

Session -18 Profit Planning

 

Preparing the master budget

 

Relevant problem solving from text

Garrison and Noreen, Chapter 8

 

Pages 342-391

 

Relevant Handouts available from virtual learning system

Session -19 Standard Costs, Flexible Budgets & Variance Analysis

 

 

 

 

 

Quiz 3

 

Setting standard cost

General model for standard cost

 

 

Relevant problem solving from text

 

 

 

 

 

Knowledge of Profit Planning

Garrison and Noreen, Chapter 9

 

Pages 392-426

 

Relevant Handouts available from virtual learning system

Session -20 Standard Costs, Flexible Budgets & Variance Analysis Using standard cost for Direct Material

Direct Labour

Variable Material Overhead

 

Relevant problem solving from text

Garrison and Noreen, Chapter 9 and 10

 

Pages 392-426 Chapter 9 and pages 427-476 (Chapter 10)

 

Relevant Handouts available from virtual learning system

Session -21 Standard Costs, Flexible Budgets & Variance Analysis Flexible budget

Variable Overhead Variance

Fixed Overhead Variance

 

Relevant problem solving from text

Garrison and Noreen, Chapter 10

 

Pages 427-476

 

Relevant Handouts available from virtual learning system

Session -22 Relevant cost for decision making

 

 

 

 

 

 

 

 

Quiz 4

Cost concepts for decision making

 

 

Relevant problem solving from text

 

 

 

 

 

 

 

 

Knowledge of Standard Costing and Flexible Budgets

Garrison and Noreen, Chapter 12

 

Pages 531-582

 

Relevant Handouts available from virtual learning system

Session -23 Relevant cost for decision making Adding and dropping product lines

 

 

Relevant problem solving from text

Garrison and Noreen, Chapter 12

 

Pages 531-582

 

Relevant Handouts available from virtual learning system

Session -24 Relevant cost for decision making Make or buy decision

 

Special order and utilization of constrained resources and sell & further process

 

Relevant problem solving from text

Garrison and Noreen, Chapter 12

Pages 531-582

 

Relevant Handouts available from virtual learning system

Session -25  Project Presentation

 

Quiz 5

Case Presentation

 

 

Knowledge of Profit Planning

 

 

Session -26 Final Exam Chapter 8,9,10, and 12 Garrison and Noreen, Chapter 8,9,10 and 12

Students who are willing to audit the course are welcome during the first two classes and are advised to contact the instructor after that.

Plagiarism- that is the presentation of another person’s thoughts or words as though they were the students’ own – must be strictly avoided. Cheating and plagiarism on exam and assignment are unacceptable.

Please see the green book for further information about academic regulation and policies, including withdrawal and grading, apples and penalties for pilgrims and academic misconduct.

Students with disabilities are required to inform the School of Business/ Department of Economics of any specific requirement for classes or examination as soon as possible.