Course Contents
Unit I: Management Accounting and Its Environment : 4 hours
Concept, scope and objectives of management accounting; Changing role of management accounting in a dynamic business environment; The management process and accounting; Managerial versus financial accounting; Role of management accountant in an organization; Management accounting as a career; Ethical codes of conduct for management accountants.
Unit II: Basic Cost Management and Cost Behavior : 6 hours
Concept of cost; Product and period costs; Manufacturing costs and flows; Product costing in nonmanufacturing organizations; Controllable and uncontrollable costs; Opportunity costs; Differential costs; Cost drivers and cost behavior patterns, Variable cost and fixed costs; Segregation of semi-variable cost into variable and fixed cost using high low and least square method; Cost functions; Concept of cost allocation; Introduction to activity-based costing.
Unit III: Cost-Volume Relationship : 9 hours
The relationship among cost, volume and profit; Break-even-point; Assumptions behind breakeven analysis; Breakeven formula derivation and significance, Profit volume graph and its usefulness, contribution margin and its interpretations; Goal setting and breakeven analysis; Multiple products and breakeven rules, cost structure and operating leverage; Use of break-even analysis in decision making.
Unit IV: Income Recognition, Measurement and Reporting : 5 hours
Inventorial cost under variable and absorption-costing method; Income measurement under two costing methods; Reconciliation of income under absorption and variable costing.
Unit V: Accounting for Planning and Control : 12 hours
Budget and organization; Potential problems in implementation of budgets; Types of budget; Preparing the master budget; Flexible budgeting; Concept of material, labor and overhead variances.
Unit VI: Alternative Decision Making Process and Pricing : 9 hours
The concept of relevant information; Make or buy, drop or continue, accept or reject a special offer and replacement of assets decision; The concept of pricing; Basic principles for pricing decision; General influences on pricing in practices; Cost plus pricing and target costing.
Unit VII: Management Control Systems and Responsibility Accounting : 3 hours
Management control systems and organizational goals; Responsibility accounting and centers; Developing performance measures and monitoring and reporting results.
