Semester:MBA

Course:Management Accounting

Credits: 2 Hours

Instructor:Ghanendra Fago (MBA, M. Phil.)

Class Days: ......

Introduction and Objectives

The main objective of this course is to provide in depth knowledge of management accounting concepts, tools and techniques and encourage in application of these tools in planning, decision making and control process. Thus this course includes the basic concept of management accounting and controls that are useful in strategic management process in the business organization. Management accounting focuses on critical understanding of management accounting from planning and decision-making perspective. The course aims to facilitate the participants thinking critically and rationally for the allocation of scarce and valuable economic resources among the available courses of actions in the competitive business environment. It will enable management practitioners to apply accounting information in the planning and decision making process.

Course Design

This course includes concepts and scope of management accounting applications, management accounting information system; cost estimation and cost-volume-profit analysis; strategic financial planning, strategic business decisions; investment decisions for value creation; management control systems and responsibility accounting; and cost management systems and cost control techniques.

Methodology

The teaching methodology of Management Accounting will include a combination of class lectures, group discussions, and problem solving exercises, small case studies, and quizzes. Participants must complete their prior reading and works before participating in the class. Each class will be begun with quiz to test the readings of the participants.

Evaluation

It is ongoing or continuous evaluation process, which will be spread throughout the semester. Participants will be evaluated on the following bases:

  • Attendance: 5Marks
  • Quiz : 5 Marks
  • Problems Assignments, : 15 Marks
  • Case and Articles reviews: 15Marks
  • Case Presentation: 10 marks
  • Internal tests ( Two tests):20Marks
  • Mid-term exam: 30 Marks

Note:Participants must maintain 80% attendance and obtain minimum of 60% marks in the evaluation to be qualified in the course.

  • Assignment should be submitted individually, but group consultation is allowed.
  • Deadline of review and case assignment will one day only.
  • Late submission and copying from others will be penalized.
  • Quiz will be takenin the mentioned date.
  • There will be Two Internal Testsas per this detailed schedule within class schedule with or without pre-notice.
  • There will be no make-up and re-exam for the participants who miss or fail the written test.

Management Accounting – Detailed Syllabus

Days / Chapters / Texts/ Reading / Assignments
1 / Overview of management accounting / HSS and CD, hand outs / Project/Case Assign 1
Quiz I,
2 / Cost concept and classification, estimation, Traditional costing Vs ABC system / GN: Ex 2.1 p73, Prob.2.15p79, Ex.5.3p219, Ex5.5p220 Prob5.12p222
Prob.8.17p361
Use of Excel in cost segregation and estimation / Case Assignment 1 Due Assignment 2
3 / Income recognition and reporting: Variable and Absorption costing / HSS: 13.53, 3.54, 13.41 13.53,13.54
KGFSN: Illustration 9 & 10, PP-6, PP-7, PP-17, Prob7.13p306 Prob7.17p310, / Assignment 2 due,
Assignment 3
Test- I
4-5 / Cost volume profit analysis(Certainty and uncertainly) / GN: Case 6.22p271, Case 6.23p272
HSS: 2A2, 2A1-86p, 2B1, 3B2,
KGFSN:Illustration 10, 13, 17, 18 pp-10, 24, 29, 31, 39, / Assignment 4
Presentation:Group A- Management accounting practices in the British Food and Drinks Industry
Quiz II
6-8 / Budgeting: Profit planning and control / HSS:7A1-338p, and Hand outs
KGFSN: Illustration 18, 20,PP-10,12,13, / Assignment 5
Presentation:Group B: Management accounting practicesin the Greek hospitality industry
910 / Standard costing and Balance scorecard Flexible Budgeting and variance analysis / GN: EX.10.5p462, EX.10.9p463
Hand out/ class works / Reviews
11 / Management control system and responsibility accounting / HSS and GN / Assignment 6
Review of the Chapter
Presentation: Group C: Good Budgeting Practices in Malaysian Public Universities
Group D: Management accounting and performance measures in Japanese Banks
Test II
Presentation:Group E: Using balance scorecard as strategic management system
12 / Long-term InvestmentDecisions –Risk and Uncertainty / HSS: 11B2, 11B3, 11.49,
KGFSN: PP-9, 11,13, 18, 19, 23 / Assignment 7
13 / Decision making-Drop or continue decision / HSS: 5B3,
KGFSN: Illustration 12,13, 14
14 / Accept and Reject offer Decision / HSS: 5A1, 5.62, 5.53, 5.38,
KGFSN: Illustration 2, 8, 9
15 / Make or buy part and components decision / HSS: 6.33,6.34, 6.35, 6.51, 6A1, 6B1, 6.62, 6.64, 6.65
KGFSN: Illustration 19,21,PP-30,32
Quiz III, Final Submission of Project Work
16 / Sell or process further and
Lease or cash purchase decisions / S or F: 6A2, 6B2,6.36, 6.37 6.39. 6B3KGFSN: Illustration 33,3438 / NA
15 & 18 / Internal pricing and external pricing / KGFSN: Illustration 2, 8, PP-11, 14, 16PP-15, 18, 19, 21-25
Problems from HSS / Assignment 8

Text Books

Garrison, Ray H and Noreen, Iric W (2003).Managerial Accounting; New York: Tata McGraw(GN)

Horngren, C. T.; Sundem, G. L. and Stratton, W. O: Introduction to Management Accounting; Pearson Education; New Delhi. (Thirteenth edition) (HSS)

Koirala, M.P., Gyawali A, Fago, G, Subedi, D and Niroula, H (2010) Management Accounting: Kathmandu: Budhha Academics enterprises P. ltd. (KGFSN)

Bajracharya et al. (2006) Management accounting; Katmandu: Asmita Books and stationery (BOGS)

Drury, Colin: Management and cost accounting (Fifth Edition 2000); Business Press Thomson Learning (CD)

Ronald W. Hilton: Managerial Accounting: Creating Value in a Dynamic Business Environment; TATA McGraw-Hill Publishing Company Limited, New Delhi;

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