COURSE OUTLINE

GIFT BUSINESS SCHOOL

ACC-612
Management Accounting Decision Making - M.Com/MSc AF
ACC-419
Advanced Cost and Management Accounting - B.Com(Hons)
ACC-410
Management Accounting-Decision Making - BS AF
Fall 2015 Semester
Faculty:
Credit hours:
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GIFT Business School

03
Graduate / Under graduation (Core)
GIFT University/On Campus/In Person
Mr. Naveed Ahmad Mughal
naveed.mughal@gift.edu.pk
Monday to Friday (as proposed by the instructor)
ACC-515 / ACC-306
As per university time table
October 23, 2015

BRIEF COURSE OBJECTIVES

This course is designed to focus on the identification and application of management accounting
techniques for decision-making in a specific area and to provide the students with an in-depth
knowledge of Management Accounting to enable them to:
Apply its methods and techniques for preparing and presenting information for management
decision-making and control purposes.
Formulate strategic plans for achieving efficiency and effectiveness of the operation of the
business.
By the end of the course, students will be able to understand theoretical framework and practical
application of:
Develop cost management information to facilitate the principal management function and strategic management,
Develop information for managerial planning and decision-making by using various techniques,
such as cost volume-profit analysis, sales volume analysis, gross profit analysis, key limiting
factors, make or buy decision, differential cost and comparative cost analysis, opportunity cost
and relevant cost
Generate information on the basis of pricing techniques, and decision making related to prices
of the products
Cost planning and competitive advantage
CONTENTS, ORGANIZATION AND TEACHING STRATEGIES
At the end of this course, students would be expected to understand the role of the Management
Accountant within an organisation. They will have a theoretical understanding decision making and
Performance evaluation tools and their application.
Expected cognitive outcomes include the development and demonstration of a high level of skills in:
Written communication
Problem solving
Analysis and critical evaluation
Information literacy
Ability to assume responsibility and make decisions.
ASSESSMENT
Assessment Summary
Item
1.
2.
3.
4.
5.

Assessment Task
Assignments
Quizzes
Mid-Semester Examination
Final Examination
Project

Length
Min 4 no.
Min 4 no.
1 hour 20 mins
Min 2 hours

Weighting
15%
15%
20%
40%
10%

Due Day and Time

During the semester
Various Sessions in Class
In formal examination period
During the semester

Students must complete each component of the assessment to the satisfaction of the Course
Convenor, and achieve an overall mark of 40% in order to pass the course.
COURSE COMMUNICATIONS
The instructor will communicate with students through announcements in lectures. Students requiring
an appointment should contact the instructor.

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CONTENT SUMMARY
SESSIONS

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TOPICS

READINGS

Cost Behavior: Analysis and Use:

Cost Concepts & Classifications, Cost behavior, Factors influencing
cost behavior. Types of cost behavior patterns, The analysis of
mixed costs.
Cost-Volume-Profit Analysis: Marginal and absorption
costing, break even analysis, breakeven charts,
breakeven for decision making, change in price and
volume and its effects, contribution/sales ratio, margin of
safety, multi products breakeven analysis. Break even
analysis in case of limiting factors.
Variable Costing: A Tool for Management: Absorption
Costing, Variable Costing, Selling and Administrative
Expense, Unit Cost Computations, Income Comparison
of Absorption and Variable
Costing.
Activity-Based Costing: A Tool to Aid Decision
Making: The role of cost accumulation system in
generating relevant cost information for decision
making. Types of cost systems. Comparison of
Traditional and ABC systems. Designing ABC Systems.
ABC profitability analysis. Cost versus benefit analysis.
MID TERM
Relevant Costs & Short term decisions:
Acceptance/rejection of contracts, minimum pricing,
extra shift decisions and over time, out sourcing and
make or buy decisions, adding or deleting products,
discontinuation decisions, choosing between options,
further processing decisions, product mix decisions
when capacity constraints exist.
Pricing decisions: Relationship between price and
demand, the role of cost information in pricing decisions,
Pricing decisions for profit maximizing, pricing policies,
cost based approaches to pricing, external pricing
strategies.

Garrison Ch 5
Horngren Ch 2 & 10
Drury Ch 2 & 24
CIMA Ch 1

Decision - making under conditions of risk and

uncertainty: Probabilities, Probability distributor and
expected value , Measuring the amount o f uncertainty,
Decision Tree Analysis, Maximin, Maximas and regret
criteria
The application of linear programming to
management accounting: Use of Linear programming
to manage constraint resources, Graphical method

Garrison Ch 6
Horngren Ch 3
Drury Ch 8
Matz Ch 24
CIMA Ch 3
Garrison Ch 7
Horngren Ch 9
Drury Ch 8
Matz Ch 24
CIMA Ch 2
Garrison Ch 8
Horngren Ch 5
Drury Ch 10
CIMA Ch 2

Garrison Ch 13
Horngren Ch 11
Drury Ch 9
CIMA Ch 4
Garrison Appendix A
Horngren Ch 12
Drury Ch 11
CIMA Ch 6

Drury Ch 9
CIMA Ch 7

Drury Ch 9
CIMA Ch 5

TEXT AND SUPPORTING MATERIAL

Prescribed Text:

Managerial Accounting By Garrison Noreen 13th edition

Management accounting Decision making by CIMA Publisher 2009 edition
Cost Accounting A managerial Emphasis by Charles T. Horngren 14th edition

Reference Text:

Cost Accounting, Planning and Control by Matz and Usery, 7th Edition.
Cost & Management accounting By Colin Drury 7th edition

GENERAL RULES FOR THE COURSE

Attendance requirement
A candidate with less than 80% attendance in class lectures, laboratory / field work, seminars, etc. will
not be allowed to take the Final Examination in a course. A student cannot withdraw due to shortage of
attendance.
A student not taking the examinations due to shortage of attendance will be graded F.
It is the responsibility of the students to keep a record of their attendance profile, and to ensure the
correction of their attendance record. Any omission of attendance due to late arrival or other reasons
must be sorted out by the student with the teacher concerned within 24 hours of the lecture. No excuse
in this regard will be accepted at the time of issuance of examination slips.
General requirement
Enrolment in this course is undertaken on the basis that prior assumed knowledge has been gained by
the attainment of a grade of pass or above in the prerequisite course/s (if applicable). Failure to
adhere to this recommendation may result in you having difficulty with the course and not being able to
successfully complete it. Any additional support or special assistance cannot be expected or requested
if you have not completed the recommended prerequisite course/s.
1. To be eligible to pass GBS courses, students must demonstrate a reasonable degree of
competence in the required course objectives as examined in each form of assessment.
2. Non-submission of a piece of assessment will incur a fail grade for the GBS courses.
3. Students are expected to spend time outside of supervised class periods developing skills and
knowledge.
4. Any dishonest assignment will be penalised.
"Dishonest assignment" includes:
Deliberate copying or attempting to copy the work of other students;
Use of or attempting to use information prohibited from use in that form of assessment;
Submitting the work of another person as your own;
Plagiarism (i.e. taking and using the thoughts and writings of another person with the intent
to claim the work as your own);
Any student found knowingly to have helped another student to produce an assignment
dishonestly will incur the same penalty as awarded to that student.
Full and detailed acknowledgement (e.g. notation, and/or bibliography) must be provided if
contributions are drawn from the literature in preparation of reports and assignments.
ACADEMIC MISCONDUCT
Students must conduct their studies at the University honestly, ethically and in accordance with
accepted standards of academic conduct. Any form of academic conduct that is contrary to these
standards is academic misconduct, for which the University may penalise a student. Specifically it is
academic misconduct for a student to:
Present copied, falsified or improperly obtained data as if it were the result of laboratory work,
field trips or other investigatory work;
Include in the student's individual work material that is the result of significant assistance from
another person if that assistance was unacceptable according to the instructions or guidelines
for that work;

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 Assist another student in the presentation of that student's individual work in a way that is
unacceptable according to the instructions or guidelines for that work;
Cheat; (Cheating is dishonest conduct in assessment);
Plagiarise (Plagiarism is knowingly presenting the work or property of another person as if it
were one's own.)
UNIVERSITY SUPPORT RESOURCES
Computing Laboratories - The University provides access to computing facilities for educational
purposes.
Student Services - facilitate student access to and success at their academic studies. Student
Services include: Careers Development Office; Study Rooms; English Language Program, Resource
Centre and the University Library.See digital library Ebsco Host and Springer Link at
http://digitallibrary.edu.pk/giftunigujranwala.html

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