Lovely Professional University,Punjab

Format For Instruction Plan [for Courses with Lectures and Tutorials ]

Course No. MGT202 Course Title: COST & MANAGEMENT ACCOUNTING L: 4 T: 2 P: 0 Cr: 5

Course Planner :- 11551 :: Nitika Sehgal

TextBook

1. Arora M.N., Cost and Management Accounting, Himalaya Publishing House, New Delhi,2009

Other Specific Books

2. Pandey, IM, Management Accounting, Vikas Publishing House, New Delhi,2008
3. Khan & Jain, Management Accounting, Tata Mc Graw Hill, New Delhi,2008
4. Horngren,Dartar and Forter, Cost Accounting,Pearson Publications,Prentice Hall Publishing House,New Delhi,2008
5. Shah Paresh, Management Accounting, Oxford University Press, New Delhi,2009

Other Readings

Sr. No. Jouranls atricles as compulsary readings (specific articles, Complete reference)

6 Chauhan Mukesh and Gupta Shivani “ Target Costing an effective tool to target Business” The Management Accountant, April 2009pp.296-303

7 Chouhan vaneet “ Activity based costing: A Case Study” The Management Accountant, June 2009 pp.479-485 8

8 Chauhan Mukesh and Gupta Shivani “ Life cycle costing: Need for better Asset Management” The Management Accountant, May 2009pp.392-399

9 "Best Practices in Cash Flow Management and

Reporting",http://www.qfinance.com/cash-flow-management-best-practice/best-practices-in-cash-flow-management-and-reporting?page=1
10 " What's Important in an Annual
Report",http://proquest.umi.com/pqdweb?index=6&did=1039317421&SrchMode=1&sid=2&Fmt=6&VInst=PROD& VType=PQD&RQT=309&VName=PQD&TS=1
279687217&clientId=129893

Relevant Websites

Sr. No. Web adress (only if relevant to the courses) Salient Features

11 www.informationforaccountants.com/Ratio_Calculators.html Conceptual details of Ratio Analysis

12 www.informationforaccountants.com/Rate_of_Return_calculator.html Conceptual details of Ratio Analysis

13 www.informationforaccountants.com/Cost_Accounting.html Conceptual Details of Cost Accounting

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 14 www.informationforaccountants.com/Ratio_Analysis.html Conceptual details of Ratio Analysis

15 http://www.accountingcoach.com/online-accountingcourse/course/30Xpg01.html Conceptual details of Standard Costing

16 http://www.middlecity.com/ch20.shtml Conceptual details and Practical Problems of CVP

17 http://www.accountingcoach.com/online-accountingcourse/01Xpg01.html Conceptual details of Break even analysis

18 http://philholden.edublogs.org/video-lessons/ Video case on Opportunity cost

Detailed Plan For Lectures

Pedagogical tool
Chapters/Sections of
Homework to be Demonstration/case
Week No. Lecture No. Topic Textbook/other
Assigned to students study/images/anmation
reference
ctc. planned

Part 1
Week 1 Lecture 1 Introduction to Cost Accounting- Book :1,chapter 1
Meaning & definition, Scope, use of
cost accounting, Relationship between
Financial Accounting & Cost
Accounting and role of Cost accounting
in decision-Making
Lecture 2 Cost concepts, Element of cost, Book :1,chapter 1 video case: reference 18
classification of costs ->Reference :18,
Lecture 3 Preparation of cost sheet through Book :1,chapter 1 practical problems
practical problems.
Lecture 4 Treatment of stock in cost sheet- raw Book :1,chapter 1 HomeWork 1 Allocation practical problems
material, work-in-progress and finished
stock.

Week 2 Lecture 5 Unit or output costing- tenders or Book :1,chapter 1 practical problems
quotation filing through practical
problems.
Lecture 6 Treatment of scrap through practical Book :1,chapter 1 practical problems
problems.
Lecture 7 Practical Problems Book :1,chapter 1

Lecture 8 Accounting for material: Material Book :5,chapter 1 Practical problem

Control- stock levels, EOQ, ABC
techniques and material losses.

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Part 1
Week 3 Lecture 9 Methods of Pricing of Material issues: Book :5,chapter 1 HomeWork 1 practical problem
Cost price methods- FIFO, LIFO, Submission
average cost inflated price, specific
price and HIFO. Market price methods replacement
price and realizable value.
Standard price method- current
standard price and base standard price.
Lecture 10 Labour: labour turnover- meaning, ->Reference :1,chapter 4 practical problem
measurement of labour turnover,
causes, effect of labour turnover and
control of excessive labour turnover.
Methods of wage payment- Time wage
system and piece wage system.
Lecture 11 Incentive plans: halsey plan, Rowan plan,TAylor's differential piecec ->Reference :1,chapter 4 practical problems
rate system, Merrick differential piece rate system, emerson's
efficiency system,gantt task and bonus system
Lecture 12 Overhead: classification, allocation and ->Reference :1,Chapter 5 practical problems
absorption of Overhead- under and
over absorption of Overhead.

Week 4 Lecture 13 Marginal costing & Absorption ->Reference :1,chapter 10 HomeWork 2 Allocation Practical problems
Costing- meaning and distinction.
CVP Analysis- P/V ratio- calculation
and uses of P/V ratio.
Part 2
Week 4 Lecture 14 Break even point- Algebraic Term Paper 1 Allocation practical problems
calculations, Graphic presentations
and effect of increase or decrease
over break-even point. Margin of
safety.
Lecture 15 Applications of marginal costing for ->Reference :1,chapter 10 practical problems,
decision making in organizations: Case: University of
Profit Planning, evaluation of bombay
performance, fixation of selling price
and maintaining a desired level of
profit.
Lecture 16 Applications of marginal costing for ->Reference :1,chapter 10 practical problems
decision making in organizations:
make or buy, accepting additional
orders and exploring additional
markets & exporting.

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Part 2
Week 5 Lecture 17 Applications of marginal costing for ->Reference :1,chapter 10 practical problems
decision making in organizations: Keyfactors
and fixing priority among
products.
Lecture 18 Applications of marginal costing for ->Reference :1,chapter 10 practical problems
decision making in organizations:
Suitable product mix, Discontinue of a
product line.
Lecture 19 Standard costing- as a control ->Reference :1,chapter 12
technique, setting of standards & their
revision and applicability of standard costing. Variance analysis-
meaning &
importance.
Lecture 20 Material Variance and its applications: ->Reference :1,chapter 12 practical problems
material cost variance, material price
variance and material usage variance.

Week 6 Lecture 21 Material Mix variance and material ->Reference :1,chapter 12 HomeWork 2 practical problems
yield variance. Submission

Lecture 22 Labour variance: labour cost variance, ->Reference :1,chapter 12 practical problems
labour rate variance and labour
efficiency variance..
Lecture 23 Labour mix variance, idle time variance practical problems
and labour yield variance.
Lecture 24 Overhead Variance: overhead cost ->Reference :1,chapter 12 practical problems
variance, types of overhead variance:
fixed and variable.
Variable overhead cost variance:
expenditure or budget variance and
efficiency variance.

Week 7 Lecture 25 Fixed overhead cost variance: Quiz 1 practical problems

expenditure or budget variance and
volume variance: efficiency variance,
capacity variance and calendar
variance.
Lecture 26 Budgetary control: meaning, ->Reference :1,chapter 11
objectives, installation of budgetary
control system and types of budgets.
Lecture 27 Preparation of cash budget, fixed and flexible budgets ->Reference :1,chapter 11 practical problems,
Case:Tab Comb Inc,

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Part 2
Week 7 Lecture 28 Revision

MID-TERM
Part 3
Week 8 Lecture 29 Introduction to management ->Reference :1,chapter 1
accounting- meaning, nature, scope
and limitations.
Lecture 30 Relationship of financial, cost and ->Reference :1,chapter 1
management accounting
Lecture 31 Analysis of financial statements meaning ->Reference :1,chapter 13 HomeWork 3 Allocation
and significance of financial
statement analysis.
Lecture 32 Tools of financial statement analysis - ->Reference :1,chapter 13 practical problems,
Comparative statements and common analysing the annual
size statements. report of the company

Week 9 Lecture 33 Tools of financial statement analysis - practical problems

trend analysis.
Lecture 34 Ratio Analysis: meaning, interpretation ->Reference :9,
and classification of ratios. ->Reference :12,
->Reference :10,
->Reference :1,chapter 14
Lecture 35 Liquidity ratios ->Reference :1,chapter 14 practical problems

Lecture 36 Activity ratios ->Reference :1,Chapter 14 practical problems

Week 10 Lecture 37 Solvency ratios ->Reference :1,Chapter 14 practical problems

Lecture 38 Profitability ratios ->Reference :1,Chapter 14 practical problems

Lecture 39 Limitations of ratio analysis. ->Reference :1,Chapter 14 Analysing through

annual report of company
by using excel
applications
Part 4
Week 10 Lecture 40 Fund Flow Analysis: meaning, sources ->Reference :1,Chapter 15 HomeWork 3
and applications of fund. Submission

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Part 4
Week 11 Lecture 41 Preparation of statement of changes in ->Reference :1,Chapter 15 practical problems
working
Lecture 42 Preparation of Fund Flow statement ->Reference :1,Chapter 15 HomeWork 4 Allocation practical problems

Lecture 43 Treatment of provisions for taxation, ->Reference :1,Chapter 15 Term Paper 1 practical problems
proposed dividend and interim Submission
dividend.
Lecture 44 Practical problems ->Reference :1,Chapter 15 practical problems,
Analysis through annual
report of any company

Week 12 Lecture 45 Cash Flow analysis (as per AS-3): ->Reference :1,Chapter 16 practical problems
meaning, difference between cash
flow & fund flow statement and
classification of cash flows.
Lecture 46 Calculation of cash from operating ->Reference :1,Chapter 16 practical problems
and investing activities.
Lecture 47 Calculation of cash from financing ->Reference :1,Chapter 16 practical problems
activities. Preparation of cash flow
statement.
Lecture 48 Objectives and uses of cash flow ->Reference :1,Chapter 16 practical problems
statement. ->Reference :9,

Week 13 Lecture 49 Practical problems ->Reference :1,Chapter 16 HomeWork 4 practical problems,

Submission analysing through annual
report of any company.
Lecture 50 Introduction to recent development in ->Reference :1,Chapter 17 Quiz 2
cost management: Target costing. ->Reference :6,
Lecture 51 Introduction to recent development in ->Reference :1,Chapter 17
cost management: Kaizen Costing, activity based costing ->Reference :7,
Lecture 52 Revision ->Reference :7,

Spill Over
Week 14 Lecture 53 Reporting to Management. ->Reference :1,chapter 17

Lecture 54 Responsibility Accounting ->Reference :1,chapter 17

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 Spill Over
Week 14 Lecture 55 Zero Base Budgeting. ->Reference :1,chapter 11

Lecture 56 Life Cycle Costing ->Reference :8,

Details of homework and case studies plan

Nature of homework
Homework No. Topic of the Homework (group/individuals/field work

Homework 1 practical problems on Statement of cost and estimated cost sheet. Individual

Homework 2 Practical problems on breakeven analusis and Cost Volume Profit Analysis Individual

Homework 3 practical problems on Financial statement Analaysis( comparative statements,commonsize Individual

statement, trend analysis) and Ratio analysis

Homework 4 practical problem on Fund flow statement and cash flow statement Individual

*Normally all the homeworks shall be submitted online but in special courses where homeworks cannot be submited online , the insructor can edit the mode of submission while
entering the IP Details

Scheme for CA:out of 100*

Component Frequency Out of (If any) Marks for each Total Marks

Homework 3 4 15 45

Quiz 2 15 30

Term Paper 1 25 25

Total :- 100

* In ENG courses wherever the total exceeds 100, consider x best out of y components of CA, as explained in teacher's guide available on the UMS

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 List of suggested topics for term paper[at least 15] (Student to spend about 15 hrs on any one specified term paper)
Sr. No. Topic
1 Case Study on Marginal Costing and its application ( Details Attached)
Suppose you are running an organization manufacturing an article. Assume total units produced and sold, per
unit material cost, per unit labor cost, per unit other variable expenses for the
product and total fixed expenses incurred.
---Units are to be manufactured as per your roll no. (Roll no. × 1,000 units)
Suppose there is Roll number 1, he would manufacture 1× 1,000 = 1,000 units.
---You are required to produce multiple products.
If your Roll no is even then you are supposed to produce 3 products.
If your Roll no is odd then you are supposed to produce 4 products.
(ii) Compute contribution, sales ratio, break-even point and margin of safety
(iii) Show the changes in contribution, sales ratio, Break even point and Margin of Safety when (a)
Unit selling price of the product increases by 5%
(b) Unit variable cost increases by 20%
(c) Total Fixed cost increases by 20%
(d) No. of units sold increases by 5%
(iv) There is recession in the country which is considered to be of temporary nature and your
company does not want to retrench personnel. An order is available for your product at a selling
price which evidently is below the cost of production. What would be your decision and why.
Support your answer with numerical illustration taking the figures assumed above
(v) CVP analysis is used by your company in guiding the decisions yet to be made. Numerically
enumerate the following areas where managerial problems are simplified by the use of CVP
analysis.
(a) Fixation of selling price
(b) Make or buy decision
(c) Maintaining desired level of profit
(d) Selection of suitable product mix

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 Plan for Tutorial: (Please do not use these time slots for syllabus coverage)

Tutorial No. Topic Type of pedagogical tool(s) planned

(case analysis,problem solving test,role play,business game etc)

Tutorial 1 Cost Sheet. Problem solving

Tutorial 2 Study of various companies’ Annual Report for preparing cost

sheet

Tutorial 3 One Unit Costing Problem solving

Tutorial 4 One Unit Costing Problem solving

Tutorial 5 Material and methods of issue of material Problem solving

Tutorial 6 Labour- wage payment and incentive plan. Problem solving

Tutorial 7 Overheads- allocation and absorption Problem solving

Tutorial 8 Marginal Costing and its applications Problem solving

Tutorial 9 Marginal Costing and its applications Problem solving

Tutorial 10 Marginal Costing and its applications Problem solving

Tutorial 11 standard costing Problem solving

Tutorial 12 Standard Costing Problem solving

Material cost, labour Cost, overheads and Standard costing

Tutorial 13 Budgetary Control Problem solving

Tutorial 14 term paper review I status of term paper

After Mid-Term

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 Tutorial 15 Cost Management in Competitive Environment: A Case Case analysis
Study of Air Deccan.

Tutorial 16 Tools of Financial Statement Analysis Problem solving

Tutorial 17 Tools of Financial Statement Analysis- ratio analysis Problem solving

Tutorial 18 Ratio analysis Problem solving

Tutorial 19 ratio analysis

Tutorial 20 ratio analysis through annual report of a company Case analysis

Tutorial 21 term paper review II Problem solving,status of term paper

Tutorial 22 fund flow statement Problem solving

Tutorial 23 Cash flow statement Problem solving

Tutorial 24 cash flow statement Problem solving

Tutorial 25 cash flow analysis of any company through its annual report Case analysis

Tutorial 26 Revision on marginal costing,ratio analysis, fund flow Test

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