PGPM 2019

Blended Web Learning

SPJIMR
Subject: Management Accounting
Credit: 1.0 Faculty: Prof. Prem Chandrani Sessions: 8 Modules: 6

About the Course: This course is about developing and using measurement systems to
support decision-making and performance evaluation. Because we focus on the firm’s
internal decisions, we are not constrained by the rules and regulations that surround
financial accounting. Instead, we work towards developing a conceptual framework that
emphasizes the costs and the benefits associated with using a particular measurement
system. Our objective is not to teach you intricate details or to turn you into accountants.
The goal is to make you educated users of management accounting information within
the larger organizational context. Managerial Accounting is concerned with information
needed to effectively plan and control company operations and make good business
decisions. Two key ideas that this course will emphasize are: 1) decision making relies
on incremental analysis and 2) you get what you measure. This course also deals with
in-depth analysis of the management accounting principles and practices with the focus
of value creation by adopting modern costing practices. Cost management is a field in
transition, moving from a procedural focus on stewardship accounting to a strategic
focus on the use of accounting to facilitate the business success of both manufacturing
and service firms. The course is of interest to those who wish to be abreast of latest
practices in costing and management accounting for getting success in their consulting
and related career.

Course Objective :
To understand management accounting concepts and principles in terms of the theory
and practical applications in business context.

Intended Learning Outcome

This course will equip a student to:
1. Understand about basic cost terminology and how it can be used
2. Understand the basic characteristics of various costing systems, namely
traditional, activity base and marginal, and understand how they are used.
3. Relate revenue and cost management concepts and techniques to particular
types of organization structure.
4. Apply and calculate variances of elements of cost
5. Understand the concepts of transfer pricing, life cycle costing and target costing

Prescribed Text Book:

“Managerial Acct” By Sawyers/ Jackson/ Jenkins/ Arora

Pedagogy:
Web Learning, Class discussions, PowerPoint Presentations, Use of
Excel Worksheets, Class Exercises, Assignments and Group Work

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 PGPM 2019
Blended Web Learning
SPJIMR
Subject: Management Accounting
Credit: 1.0 Faculty: Prof. Prem Chandrani Sessions: 8 Modules: 6

Alignment of intended Program Goals & Course Learning outcomes:

Sr. Course Learning Teaching and Learning

Programme Learning Objectives
No (CL) objectives Activity

1.1 Social Sensitivity, particularly of the underprivileged - -

Recognition of leadership and administrative issues for - -

1.2
middle and senior management
Comparison of Indian and International social, economic - -
2.1
and business environment.
2.2 Recognition of cross cultural differences. - -
Online sessions, discussion
3.1 In-depth and specialized knowledge in the functional area. CLO 1, 2, 4
forums, lectures
Online sessions, discussion
3.2 Ability to apply and integrate cross-functional knowledge. CLO 3, 5
forums, lectures
Recognition of relevant issues leading to identification of
4.1 critical business problems, including unstructured - -
environment.
Problem identification, definition and selection of
4.2 appropriate models for decision making and problem - -
solving.

Assessment Plan:

Assignments/
Evaluation components
Quiz (online):

Quiz during

End-term
contact:
Group

Exam:
30%

30%

20%
Objective for Learning Goal
LG1: Value -based, socially sensitive leader of self and others
 LO1: Social Sensitivity, particularly of the underprivileged -
 LO2: Recognition of leadership and administrative issues for middle and
senior management
LG2: Appreciation for distinctiveness of business in India and their
interconnectedness with the global environment
 LO1: Comparison of Indian and International social, economic and -
business environment.
 LO2: Recognition of cross cultural differences.
LG3: Integrative and actionable knowledge of selected domain and functional
area
 LO1: In-depth and specialized knowledge in the functional area. xx xx xx
 LO2: Ability to apply and integrate cross-functional knowledge. x x x

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 PGPM 2019
Blended Web Learning
SPJIMR
Subject: Management Accounting
Credit: 1.0 Faculty: Prof. Prem Chandrani Sessions: 8 Modules: 6

LG4: Analytical and decision making skills in the context of the real world
 LO1: Recognition of relevant issues leading to identification of critical
business problems, including unstructured environment. -
 LO2: Problem identification, definition and selection of appropriate
models for decision making and problem solving.

Evaluation

Component Weightage
Quiz (Online) – Best 3 30%
Group Assignments/ Quiz During Class Contact 30%
End Term Exam 40%
Total 100%

Evaluation Schedule:

Evaluation Component Date of Evaluation

Quizzes Start date End date
Lesson 2: Quiz 1 3-11 9-11
Lesson 3: Quiz 2 17-11 23-11
Lesson 4: Quiz 3 8-12 14-12
Lesson 4: Quiz 4 15-12 21-12
Lesson 5: Quiz 5 22-12 28-12
Lesson 6: Quiz 6 29-12 4-01

1. Session Details: Web Learning

Session & Web Learning
Theme Topic/Application Exercises
Dates Module Reference
WL-W1
12/10/2018 - Cost Management Pre Course Assessment WL-Lesson 1
21/10/2018
Accounting Information Uses
Financial Accounting v/s Cost Accounting
WL- W2 Introduction to Cost Need For Cost Management WL-Lesson 2
22/10/2018 - Management Functions Of Cost Management
04/11/2018
Strategic Decisions & Management
Accounting
Concept of Cost
WL- W3 & W4 Cost Terms & Cost Cost Object WL-Lesson 3
05/11/2018 - Objects Classification of Cost
18/11/2018
Cost Ascertainment

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 PGPM 2019
Blended Web Learning
SPJIMR
Subject: Management Accounting
Credit: 1.0 Faculty: Prof. Prem Chandrani Sessions: 8 Modules: 6

Cost for Decision Making

Depiction of Period & Product Cost
Cost Sheet
Introduction
Evaluating Cost Structure
WL- W5 & W6 Cost Volume Profit Breakeven Analysis
19/11/2018 - Operating Income & Contribution Margin WL-Lesson 4
Analysis
09/12/2018 Approach
Target Income & Profit
Application of CVP Analysis
Sunk Cost
Opportunity Cost
Relevant & Irrelevant Cost
Controllable & Uncontrollable
WL- W8 & W9 Cost For Decision
Cost WL-Lesson 5
10/12/2018 -
Making Cash flow Based Cost
23/12/2018
Classification
Transaction Cost
Cost From Customer’s Point of
View
WL- W10
23/12/2018 - Post Assessment Post Web Learning Assessment WL-Lesson 6
30/12/2018

2. Session Details: On Campus Contact

Text Book Chapter

Session Theme Topic/Application Exercises
Reference
 Understand how costs are traced to the
1&2 Allocation and Ch. 8
final product.
Absorption of
Overheads and Activity  Understand the Purpose and methods of
Based Costing Cost Allocations
 Enhancing Accuracy in Overhead tracing to
cost objects
 Broad Averaging and its consequences
 Activity based costing vs Departmental
costing System
3&4 Cost Information for  Dealing with capacity constraints Ch. 13 & 14
Decision Making
 Decision making- Retain or replace,
purchase or lease, Explain the relevance of
book value, sunk cost, trade in value of
equipment
5&6 Variance Analysis &  Understand static budgets and static Ch. 10 & 11
Flexible Budgeting budget variances

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PGPM 2019
Blended Web Learning
SPJIMR
Subject: Management Accounting
Credit: 1.0 Faculty: Prof. Prem Chandrani Sessions: 8 Modules: 6

 Learn what is a flexible Budget?

7 Management Control
in a Decentralized
Organization
8 Transfer Pricing
 Calculate flexible Budget Variance and
price variances
 Learn how do managers use variances?
 Understand the Role of bench marking
 Understand and explain planning of
Variable and fixed Overhead Costs
 Understand and define Standard Costing
Understand the concepts of Responsibility Ch. 12
Centers and methods of Performance
Evaluation
 Understand the concept of Transfer Pricing Ch. 12

****

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