Management Accounting MC-318

Program

M.Com

Credit Hours

3

Duration

15 Weeks / 30 sessions

Prerequisites

For M.Com: Admission in M.Com

Resource Person

Tahir Mahmood (FCCA-UK, FCA-PAK)

Counseling Timing

Monday, Tuesday & Thursday 11:00 a.m. – 12:00 p.m. 03:00 p.m. – 04:00 p.m. Wednesday 1:30 p.m. – 04:00 p.m.

tahir@umt.edu.pk Contact Phone # 042-35212801-10 Ext. 356

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3. accumulating. 2/9 . 5. analytical. the impact of the accounting information system on management’s strategic decisions and explores the tools and concepts of cost management systems. analyzing. fixed and semi – variable costs. To make and use budgets for control purposes. To develop and utilize accounting information for strategic decision-making. This course is designed to enable students to learn the management accounting techniques to achieve a level of proficiency sufficient to guide management for effective utilization of economic resources. and control processes. reporting. preparing. To determine patterns of cost behavior including variable. Learning Objectives After studying this course the participants should be able:1. recording. which generate information for management decisions in business organizations. This course surveys the types of control systems that can be instituted in different situations. 2. interpreting and communicating information to help the managers to fulfil organizational objectives”. measuring.Capsule Statement Management Accounting is the “Process of identifying. The practices of accounting information systems are analyzed to determine their management implications. To analyze the effects of absorption costing and variable costing on various business decisions. This course capitalizes the accounting techniques and methods covered in the previous courses and develop a conceptual foundation for establishing a result oriented mechanism of administrative controls. It examines the planning. 4. To learn about the decision making process in the field of accounting and finance. It also discusses the role of management in the financial reporting process.

This means that the class participation marks can go into the negative as well. Consultancy Service During this program. Book Readings You are supposed to read in advance the text chapters under discussion. They typically work in teams and help each other extensively. relating to these text chapters. If you miss a Quiz. Regarding punctuality. You have an allowance of only six absents (Out of 30 sessions). However to avoid inconvenience. I have no objection to you 3/9 . students do not often work individually. setting up of appointment is recommended. It includes the leaves that you get approved from your Batch Advisor. failure due to short attendance. you get zero in that Quiz. In case you are absent in seven classes. The manner in which the question is asked or answered will also be noted. you will get an ‘SA’ grade in the course i. Your behaviour as professional accountants in the class will contribute to the class participation marks. consider me as your consultant. You are free to discuss the progress of the course any time you want.Learning Methodology The Course Regularity and Punctuality Regularity and punctuality will be very strictly observed.e. Any absent during the presentation sessions will result in deduction of 1 mark each from the class participation marks. healthy and constructive class participation will be monitored in each class. Questions answered. will contribute to the class participation marks. Particular emphasis will be given during the presentation sessions. In Case of Cheating In real world outside the classroom. Class Participation Positive. you will be marked present only if you arrive in the class on time. You will lose 5 marks if you deliver your assignment / report after the due date.

Hope you will have great time learning Management Accounting. I encourage you to do so. But do not do your assignments / projects etc. 4/9 . whatever it will be. Remember that if you cheat. you will be penalized. you will lose your 10 marks out of your aggregate sessional evaluation in addition to the cancellation of the relevant quiz / assignment / project etc. The first time you are caught cheating. There is no second chance. by cheating.getting help from me or other students.

FCA-PAK) Management Accounting (7th Edition) By Ronald W. the final grades for the course will be as follows: Quizzes Assignments Mid-Term Attendance & Class Participation Project Presentations Final exam Total Recommended Text Books  15% 10% 20% 5% 10% 10% 30% 100% Management Accounting Practice Manual (3rd Edition) By M. Hilton Reference Books   Management Accounting By Hansen / Mowen (6th Edition) Cost Accounting – Planning and Control By Matz & Usry (7th Edition) 5/9  .Assessments All of the activities held during the session will be evaluated. Tahir Mahmood (FCCA–UK.

10.12. expense and loss Opportunity cost. Using cost behaviour pattern to predict costs.4.3.3.2. imputed cost.3.6.4.2.6. sunk cost Out of pocket cost.13.9.2.7.15 Managerial Accounting: An Overview 3 Management process Role of managerial accounting Importance of managerial accounting Cost Behaviour and Estimation Fixed.11.8.14.7. High low method Account classification method Practice Questions: 1.Calendar of Activities Management Accounting – Spring 2013 Session Activity Basic Cost Terms and Concepts Cost.5.5. variable and semi variable costs. relevant and irrelevant cost Period cost and product cost Practice Questions: 1.8.4.9 Quiz # 1 Activity Based Costing 6-7-8 Pool rate Applied overheads Practice Questions: 1. differential cost.5 Assignment # 1 6/9 Chapter Reading 1-2 2 1 4-5 6 5 .

8.7.4 Quiz # 2 Cost.3.5.2.13 Mid Term 7/9 9-10 7 11-12 8 13-14 9 9 .3.6. Volume and Profit Analysis Contribution income statement Break even in units and dollars Contribution margin ratio Target net profit Safety margin Practice Questions: 1.9.12.8.2.11 Assignment # 2 Budgeting: Profit Planning and Control Systems Production budget Purchase budget Sale budget Labour budget Practice Questions: 2.Marginal Vs Absorption Costing Direct costing defined Facets of direct costing Concept of contribution margin Direct costing VS Absorption costing Practice Questions: 1.4.14 Quiz # 3 Budgeting: Profit Planning and Control Systems 15-16 Cash budget Projected income statement Master budget Practice Questions: 1.3.10.7.11.9.

7.4 Project Responsibility Accounting 21 Performance reports Segmented reporting Practice Questions: 1.5.12.8.2.9 Standard Costing 19 Planning variance Operational variance Practice Questions: 10.3.2.6.13 Quiz # 4 Responsibility Accounting 20 Responsibility centres Total Quality Management Practice Questions: 3.11.4.5 Assignment # 3 22 Decision-Making Relevant costs and benefits Accept / reject a special order 8/9 17-18 12 12 15 15 13 .Standard Costing Direct material price variance Direct material quantity variance Direct labour rate variance Direct labour efficiency variance Practice Questions: 1.

Practice Questions: 3.6.2 Assignment # 4 26-27 Presentations Emerging Issues 28-29 Target costing Value analysis Cost reduction schemes Revision 16 14 13 30 9/9 . quantitative analysis Practice Questions: 1.8 Quiz # 5 Pricing Methods 25 Profit maximizing pricing Cost plus pricing Practice Questions: 1.5.7 Decision-Making 23-24 Add or drop a product Make or buy a product Qualitative vs.4.2.