Management Accounting MC-318

Program

M.Com

Credit Hours

Duration

15 Weeks / 30 sessions

Prerequisites

For M.Com: Admission in M.Com

Resource Person

Tahir Mahmood (FCCA-UK, FCA-PAK)

Counseling Timing

Monday, Tuesday & Thursday 11:00 a.m. 12:00 p.m. 03:00 p.m. 04:00 p.m. Wednesday 1:30 p.m. 04:00 p.m.

tahir@umt.edu.pk Contact Phone # 042-35212801-10 Ext. 356

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Capsule Statement
Management Accounting is the Process of identifying, measuring, accumulating, analyzing, preparing, interpreting and communicating information to help the managers to fulfil organizational objectives. This course is designed to enable students to learn the management accounting techniques to achieve a level of proficiency sufficient to guide management for effective utilization of economic resources. This course capitalizes the accounting techniques and methods covered in the previous courses and develop a conceptual foundation for establishing a result oriented mechanism of administrative controls. This course surveys the types of control systems that can be instituted in different situations. It examines the planning, recording, reporting, analytical, and control processes, which generate information for management decisions in business organizations. It also discusses the role of management in the financial reporting process, the impact of the accounting information system on managements strategic decisions and explores the tools and concepts of cost management systems. The practices of accounting information systems are analyzed to determine their management implications.

Learning Objectives
After studying this course the participants should be able:1. 2. 3. 4. 5.

To develop and utilize accounting information for strategic decision-making. To learn about the decision making process in the field of accounting and finance. To determine patterns of cost behavior including variable, fixed and semi variable costs. To analyze the effects of absorption costing and variable costing on various business decisions. To make and use budgets for control purposes.

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Learning Methodology The Course

Regularity and Punctuality Regularity and punctuality will be very strictly observed. You have an allowance of only six absents (Out of 30 sessions). It includes the leaves that you get approved from your Batch Advisor. In case you are absent in seven classes, you will get an SA grade in the course i.e; failure due to short attendance. Regarding punctuality, you will be marked present only if you arrive in the class on time. Any absent during the presentation sessions will result in deduction of 1 mark each from the class participation marks. This means that the class participation marks can go into the negative as well. If you miss a Quiz, you get zero in that Quiz. You will lose 5 marks if you deliver your assignment / report after the due date. Book Readings You are supposed to read in advance the text chapters under discussion. Questions answered, relating to these text chapters, will contribute to the class participation marks. Class Participation Positive, healthy and constructive class participation will be monitored in each class. Particular emphasis will be given during the presentation sessions. The manner in which the question is asked or answered will also be noted. Your behaviour as professional accountants in the class will contribute to the class participation marks. Consultancy Service During this program, consider me as your consultant. You are free to discuss the progress of the course any time you want. However to avoid inconvenience, setting up of appointment is recommended. In Case of Cheating In real world outside the classroom, students do not often work individually. They typically work in teams and help each other extensively. I have no objection to you
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getting help from me or other students. I encourage you to do so. But do not do your assignments / projects etc. by cheating. Remember that if you cheat, you will lose your 10 marks out of your aggregate sessional evaluation in addition to the cancellation of the relevant quiz / assignment / project etc. whatever it will be. There is no second chance. The first time you are caught cheating, you will be penalized. Hope you will have great time learning Management Accounting.

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Assessments
All of the activities held during the session will be evaluated; the final grades for the course will be as follows: Quizzes Assignments Mid-Term Attendance & Class Participation Project Presentations Final exam Total Recommended Text Books

15% 10% 20% 5% 10% 10% 30% 100%

Management Accounting Practice Manual (3rd Edition) By M. Tahir Mahmood (FCCAUK, FCA-PAK) Management Accounting (7th Edition) By Ronald W. Hilton Reference Books

Management Accounting By Hansen / Mowen (6th Edition) Cost Accounting Planning and Control By Matz & Usry (7th Edition)
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Calendar of Activities Management Accounting Spring 2013

Session Activity Basic Cost Terms and Concepts Cost, expense and loss Opportunity cost, differential cost, sunk cost Out of pocket cost, imputed cost, relevant and irrelevant cost Period cost and product cost Practice Questions: 1,2,3,4,5,6,7,8,9,10,11,12,13,14,15 Managerial Accounting: An Overview 3 Management process Role of managerial accounting Importance of managerial accounting Cost Behaviour and Estimation Fixed, variable and semi variable costs. Using cost behaviour pattern to predict costs. High low method Account classification method Practice Questions: 1,2,3,4,5,6,7,8,9 Quiz # 1 Activity Based Costing 6-7-8 Pool rate Applied overheads Practice Questions: 1,2,3,4,5 Assignment # 1
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Chapter Reading

1-2

4-5

Marginal Vs Absorption Costing Direct costing defined Facets of direct costing Concept of contribution margin Direct costing VS Absorption costing Practice Questions: 1,2,3,4 Quiz # 2 Cost, Volume and Profit Analysis Contribution income statement Break even in units and dollars Contribution margin ratio Target net profit Safety margin Practice Questions: 1,2,3,4,6,7,8,9,11 Assignment # 2 Budgeting: Profit Planning and Control Systems Production budget Purchase budget Sale budget Labour budget Practice Questions: 2,5,7,10,11,14 Quiz # 3 Budgeting: Profit Planning and Control Systems 15-16 Cash budget Projected income statement Master budget Practice Questions: 1,3,8,9,12,13 Mid Term
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9-10

11-12

13-14

Standard Costing Direct material price variance Direct material quantity variance Direct labour rate variance Direct labour efficiency variance Practice Questions: 1,2,3,4,5,6,7,8,9 Standard Costing 19 Planning variance Operational variance Practice Questions: 10,11,12,13 Quiz # 4 Responsibility Accounting 20 Responsibility centres Total Quality Management Practice Questions: 3,4 Project Responsibility Accounting 21 Performance reports Segmented reporting Practice Questions: 1,2,5 Assignment # 3 22 Decision-Making Relevant costs and benefits Accept / reject a special order
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17-18

12

12

15

15

13

Practice Questions: 3,6,7 Decision-Making 23-24 Add or drop a product Make or buy a product Qualitative vs. quantitative analysis Practice Questions: 1,2,4,5,8 Quiz # 5 Pricing Methods 25 Profit maximizing pricing Cost plus pricing Practice Questions: 1,2 Assignment # 4 26-27 Presentations Emerging Issues 28-29 Target costing Value analysis Cost reduction schemes Revision 16 14 13

30

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