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
- 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.
- 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.
- The reading materials for each class will be given prior to that class so that student may have a cursory look into the materials.
- Class participation is vital for better understanding of sociological issues. Students are invited to raise questions.
- Students should take tutorials with the instructor during the office hours. Prior appointment is required.
- Students must maintain the IUB code of conduct and ethical guidelines offered by the School of Business.
- 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.
- 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.