INDIAN INSTITUTE OF MANAGEMENT, LUCKNOW

Post Graduate Programme in Management

MANAGEMENT ACCOUNTING
TERM - II: 2013 - 2014 (PGP - I)

Instructors:

Instructor Section(s)
Prof. A.K. Mishra 4 (Pre mid-term)

Prof. Jipul 4(Post mid-term)

Prof. Seshadev Sahoo 1 (Full course)

Prof. Alok Dixit 2 (Full Course)



Credit: Full

Session Duration: One Hour


1.0 OB1ECTIVES AND SCOPE

The course is designed
a) To provide an understanding oI the basic elements, concepts and systems oI cost
accounting.
b) To develop the ability to understand, analyse and use cost inIormation in managerial
decision making.

2.0 TEXT BOOK

The prescribed texts Ior the course are as Iollows:
a) Principle & Practice oI Cost Accounting (Text) (ReIerred to as TB) A.K.
Bhattacharya
b) Bound Volume oI Reading Material (ReIerred to as BV)

Additional Readings
a) Management Accounting Texts & Cases Robert Anthony
b) Management Accounting Horngren

3.0 EVALUATION COMPONENTS

a) Quizzes 20
b) Mid Term Examination 35
c) End Term Examination 45
SESSION DETAILS

PRE MID TERM
S
No
TOPICS READINGS EXERCISE/CASE
1 Overview of Management
Accounting & Cost Concepts
Ch. 1 (TB) (pp. 1-13);
Ch. 1 (BV) (pp. 1-20)
Cost Classification (BV)
2 Costing & Control of Materials
and Labour
Ch. 2 (BV) (pp. 25 -44)
Ch. 3 (BV) (pp. 45 - 55)
Exercises (BV)
Dixon Co. (BV)
3 Operating and Cash Budgets
Ch. 19 (TB) (Sections 19.1 to 4, 19.8,
19.11, 12); Ch. 4 (BV) (58-62)
Hypothetical Ltd.
4 Factory Overheads :
Distribution
Ch. 5 (BV) (pp. 65 - 79) Star Engineering
Company (BV)
5 Absorption of Factory
Overheads
-do - (BV) (pp. 80-88; 95-99) Exercises (BV)
6 Activity Based Costing Ch. 6 Activity Based Costing (BV) (pp.
101-119)
Destin Brass Product
(BV)
7 Job & Unit Costing Ch. 14 TB (pp. 489-501)
Ch. 7 (BV) (pp. 129-133)
Exercises (BV)
8 Process Costing (A/cg for
abnormal loss/gain)
Ch. 8 (BV) (pp. 135-149) Chemical Engineering
Factory (BV)
9 Process Costing (WIP, Joint
Product, By Product)
Ch. 9 (BV) (pp. 151-173) R.P. Ltd., Beta Ltd. (BV)
10 Service Costing Ch. 16 (TB) (pp. 657-676)
Ch. 10 (BV) (pp. 175-176)
Exercises (BV)
11 Cost Book Keeping Ch. 13 (TB) (pp. 429-458)
Ch. 11 (BV) (pp. 178-180)
Exercises (BV)
12 Cost Volume Profit Analysis
TB (p.702-716); TB (pp.766-767; pp.
78)
Problems at the end of Ch.
17 (TB)
13
Applications of CVP Analysis:
Throughput Accounting and
Flexible Budgets
Ch. 12 (BV) (pp. 182-185 ) Fixed and
Flexible Budgeting
Sulphuric Acid Plant
(BV)
14 Contemporary Cost
Management Practices
Ch. 13 (BV) (pp. 191-203) Exercises (BV)
15 Mid Term Review

MID TERM EXAMINATION

SESSION No. TOPICS READINGS EXERCISE/CASE
16 Profit Planning Roysentien Breweries (BV)
17 Make or Buy
Relevant Costs and Special
Decisions - Part One & Two (BV)
Liquid Chemicals
Company(BV)
18 Trial Orders and Pricing Indian Electricals Ltd. (BV)
19 -- do --
Cost Analysis for Pricing Decisions
(BV)
Indian Electricals Ltd.
(Contd.)
20-21 Joint Costs
Rajnigandha Perfumeries
(BV)
22
Standard Costing
- Standards
- Material Variance
1. Ch. 20 (TB) (pp. 868 - 75)
2. Variance Analysis (BV)
Sections 1 - 2
Problems at the end of Ch. 20
(TB)
23
Standard Costing
- Labour & Overhead
Variance
Variance Analysis (BV)
Sections 3 - 4
Problems at the end of Ch. 20
(TB)
24
Standard Costing
- Sales Variance
- Reporting Variances
Variance Analysis (BV)
Sections 5 - 6
Problems at the end of Ch. 20
(TB)
Problems on Sales Variance (BV)
25
Standard and Back-flush
Costing Systems
TB (pp. 501-505) Black Meter Company (BV)
26-28 Time Value of Money
Time Value of Money
(BV) (133-164)
Exercises (BV)
29-30 Comprehensive Case
Same as those for Service &
Activity-based Costing Sessions
American Bank (BV)

END TERM EXAMINATION