Basics of Managerial Accounting Syllabus - BBA (PU)

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Course Description

Course Objectives

This course aims to provide an understanding of cost and cost behavior and develop an ability to use cost information for planning and control decision. It also emphasizes the use of accounting information for internal planning and control purposes.

Course Description

Management accounting course aids to understand the concepts, tools and techniques of management   accounting functions; measuring income under different techniques for analyzing, decision-making, planning and controlling activities of an organization.  It covers cost behavior, cost-volume-profit analysis, decision regarding alternative choices, pricing products and services, planning profit through budgets, controlling direct material, direct labor and factory overhead, and responsibility accounting.

Course Outcomes

By the end of this course, students will be able to:

  • describe management accounting system and uses of accounting information;
  • illustrate the cost –benefit and behavioral issues involved in designing an accounting system;
  • construct an income statement using variable and absorption costing approach;
  • demonstrate the function of budgets and performance reports in planning and control;
  • apply the decision process to make business decisions;

describe the relationship of management control systems to organizational goals.

Unit Contents

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.

Text and Reference Books

Basic Text

  1. Horngren. Charles T. Gary I. Sundem, and William O. Stratton: Introduction to Management Accountancy, Prentice- Hall of India.


  1. Hilton, Ronald W: Managerial Accounting. Tata McGraw- Hill.
  2. Jiambalvo, James: Managerial Accounting, Wiley Publication, Sareen Printing Press, Delhi.
Download Syllabus
  • Short Name MA
  • Course code ACC 221
  • Semester Fifth Semester
  • Full Marks 100
  • Pass Marks 45
  • Credit 3 hrs
  • Elective/Compulsary Compulsary