Management Accounting_Syllabus

ACC 103 (Credit hours 3)

Management Accounting
BBA, Second Year, Third Semester

Course Objectives:
This course aims to provide an understanding of cost and cost behavior and an ability to use cost information for planning and control decision.

Course Contents:
1. Introduction 4 hours
Concept, scope and objectives of managerial accounting, changing role of management process in a dynamic business environment; managerial versus financial accounting, managerial accountant in an organization, controllership accounting responsibility and limitation, managerial accounting as a career.

2. Basic Cost Management, Allocation and Product Cost Determination 9 hours
Cost concepts, manufacturing costs flows, products costs in service industry, firms and non-profit organization
Cost behavior patterns, variable cost and fixed costs, direct, controllable and uncontrollable costs, opportunity costs sunk costs, differential costs marginal and average costs; cost estimation; product cost definition for manufacturing , service and retail industries; need for accurate determination of product costs, target analysis; analyzing cost to activities.

3. Income Recognition, Measurement and Reporting 3 hours
Absorption and variable costing, reconciliation under absorption and variable costing

4. Cost-Volume-Profit Analysis 10 hours
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, introduction to activity-based costing.

5. Planning and Control Systems 10 hours
Budgeting and profit planning, master budgeting, cash budgeting, flexible budgeting, concept of responsibility accounting.

6. Alternative Decision Making 6 hours
Make or buy, drop or continue, accept or reject a special offer, replacement of assets

7. Capital Expenditure Decisions 6 hours
Concept of present value, discounted, cash-flow analysis, methods for making investment decisions.

Text Books:
1. Hilton, Ronald W: Managerial Accounting. Tata McGraw-Hill

Reference Books:
1. Horngreen, Charles T., Gary L. Sundem, and William O. Stratton: Introduction to Management Accountancy, Prentice-Hall of India.
2. Bajracharya, Ojha, Goet, Sharma: Management Accounting in Nepal, Asmita Publishers, Kathmandu, 2005.