Management Accounting

MC-318
Program M.Com
Credit Hours 3
Duration 15 Weeks / 30 sessions
Prerequisites Admission in M.Com
esource Person !a"ir Ma"mood #ACCA$%&' (CA-PA&)
Counse*ing !iming
Monda+ $ !"ursda+
11,00 a.m. $ 1-,30 ..m.
Contact
ta"ir/umt.edu..k
P"one 0 01--35-1-801-10 23t. 354

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Ca.su*e 5tatement
Management Accounting is the Process of identifying, measuring, accumulating,
analyzing, preparing, interpreting and communicating information to help the managers
to fulfil organizational objectives! "his course is designed to enable students to learn
the management accounting techni#ues to achieve a level of proficiency sufficient to
guide management for effective utilization of economic resources! "his course
capitalizes the accounting techni#ues and methods covered in the previous courses and
develop a conceptual foundation for establishing a result oriented mechanism of
administrative controls! "his course surveys the types of control systems that can be
instituted in different situations! $t e%amines the planning, recording, reporting,
analytical, and control processes, &hich generate information for management decisions
in business organizations! $t also discusses the role of management in the financial
reporting process, the impact of the accounting information system on management's
strategic decisions and e%plores the tools and concepts of cost management systems!
"he practices of accounting information systems are analyzed to determine their
management implications!
6earning 789ecti:es
After studying this course the participants should be able()
1. "o develop and utilize accounting information for strategic decision)ma*ing!
2. "o learn about the decision ma*ing process in the field of accounting and finance!
3. "o determine patterns of cost behavior including variable, fi%ed and semi +
variable costs!
4. "o analyze the effects of absorption costing and variable costing on various
business decisions!
5. "o ma*e and use budgets for control purposes!
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6earning Met"odo*og+
!"e Course
egu*arit+ and Punctua*it+
-egularity and punctuality &ill be very strictly observed! .ou have an allo&ance of only
si% absents /0ut of 10 sessions2! $t includes the leaves that you get approved from your
3atch Advisor! $n case you are absent in seven classes, you &ill get an 45A' grade in the
course i!e6 failure due to short attendance! -egarding punctuality, you &ill be mar*ed
present only if you arrive in the class on time! Any absent during the presentation
sessions &ill result in deduction of 1 mar* each from the class participation mar*s! "his
means that the class participation mar*s can go into the negative as &ell! $f you miss a
7uiz, you get zero in that 7uiz! .ou &ill lose 8 mar*s if you deliver your assignment /
report after the due date!
;ook eadings
.ou are supposed to read in advance the te%t chapters under discussion! 7uestions
ans&ered, relating to these te%t chapters, &ill contribute to the class participation mar*s!
C*ass Partici.ation
Positive, healthy and constructive class participation &ill be monitored in each class!
Particular emphasis &ill be given during the presentation sessions! "he manner in &hich
the #uestion is as*ed or ans&ered &ill also be noted! .our behaviour as professional
accountants in the class &ill contribute to the class participation mar*s!
Consu*tanc+ 5er:ice
9uring this program, consider me as your consultant! .ou are free to discuss the
progress of the course any time you &ant! :o&ever to avoid inconvenience, setting up
of appointment is recommended!
<n Case o= C"eating
$n real &orld outside the classroom, students do not often &or* individually! "hey
typically &or* in teams and help each other e%tensively! $ have no objection to you
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getting help from me or other students! $ encourage you to do so! 3ut do not do your
assignments / projects etc! by cheating!
-emember that if you cheat, +ou >i** *ose +our 10 marks out o= +our aggregate
sessiona* e:a*uation in addition to t"e cance**ation o= t"e re*e:ant qui? / assignment
/ .ro9ect etc. >"ate:er it >i** 8e! "here is no second chance! "he first time you are
caught cheating, you &ill be penalized!
Hope you will have great time learning Management Accounting.
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Assessments
All of the activities held during the session &ill be evaluated6 the final grades for the
course &ill be as follo&s(
7uizzes ,0<
Assignments 10<
Mid)"erm 18<
Attendance = >lass Participation 8<
Project 8<
Presentations 10<
?inal e%am 18<
!ota* 100@
ecommended !e3t ;ooks
Management Accounting Practice Manual /,nd @dition2
3y M! "ahir Mahmood /A>>A+AB, ?>A)PAB2
Management Accounting /Cth @dition2
3y -onald D! :ilton
e=erence ;ooks
Management Accounting
3y :ansen / Mo&en /Eth @dition2
>ost Accounting + Planning and >ontrol
3y Matz = Asry /Fth @dition2
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Ca*endar o= Acti:ities
Management Accounting $ (a** -010
5ession Acti:it+ C"a.ter eading
1),
;asic Cost !erms and Conce.ts
>ost, e%pense and loss
0pportunity cost, differential cost, sun* cost
0ut of poc*et cost, imputed cost, relevant and
irrelevant cost
Period cost and product cost
Practice 7uestions( 1,,,1,;,8,E,C,G,F,10,11,1,,11,1;,18
,
1
Manageria* Accounting, An 7:er:ie>
Management process
-ole of managerial accounting
$mportance of managerial accounting
Assignment 0 1
1
;)8
Cost ;e"a:iour and 2stimation
?i%ed, variable and semi variable costs!
Asing cost behaviour pattern to predict costs!
:igh lo& method
Account classification method
Practice 7uestions( 1,,,1,;,8,E,C,G,F
Aui? 0 1
E
E)C)G
Acti:it+ ;ased Costing
Pool rate
Applied overheads
8
E/10
Practice 7uestions( 1,,,1,;,8
Assignment 0 -
F)10
Margina* Bs A8sor.tion Costing
9irect costing defined
?acets of direct costing
>oncept of contribution margin
9irect costing H5 Absorption costing
Practice 7uestions( 1,,,1,;
Aui? 0 -
C
11)1,
Cost' Bo*ume and Pro=it Ana*+sis
>ontribution income statement
3rea* even in units and dollars
>ontribution margin ratio
"arget net profit
5afety margin
Practice 7uestions( 1,,,1,;,E,C,G,F,11
Assignment 0 3
G
11)1;
;udgeting, Pro=it P*anning and Contro* 5+stems
Production budget
Purchase budget
5ale budget
Iabour budget
Practice 7uestions( ,,8,C,10,11,1;
Aui? 0 3
F
C/10
18)1E
;udgeting, Pro=it P*anning and Contro* 5+stems
>ash budget
Projected income statement
Master budget
Practice 7uestions( 1,1,G,F,1,,11
Mid !erm
F
1C)1G
5tandard Costing
9irect material price variance
9irect material #uantity variance
9irect labour rate variance
9irect labour efficiency variance
Practice 7uestions( 1,,,1,;,8,E,C,G,F
Assignment 0 1
1,
1F
5tandard Costing
Planning variance
0perational variance
Practice 7uestions( 10,11,1,,11
Aui? 0 1
1,
,0
es.onsi8i*it+ Accounting
-esponsibility centres
"otal 7uality Management
Practice 7uestions( 1,;
Pro9ect
18
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,1
es.onsi8i*it+ Accounting
Performance reports
5egmented reporting
Practice 7uestions( 1,,,8
Assignment 0 5
18
,,
Decision-Making
-elevant costs and benefits
Accept / reject a special order
Practice 7uestions( 1,E,C
Aui? 0 5
11
,1),;
Decision-Making
Add or drop a product
Ma*e or buy a product
7ualitative vs! #uantitative analysis
Practice 7uestions( 1,,,;,8,G
Assignment 0 4
11
,8
Pricing Met"ods
Profit ma%imizing pricing
>ost plus pricing
Practice 7uestions( 1,,
Aui? 0 4
1;
,E),C Presentations
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,G),F
2merging <ssues
"arget costing
Halue analysis
>ost reduction schemes
1E
10 e:ision
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