Executive MBA

Management Accounting
(FNI-713A)

Sensitivity: Internal
 The Code (online classes)
Come join session on time (if you’re late, kindly inform me about the reason)

Complete the reading material or assignment in a timely manner

Ask questions that are relevant to the topic being discussed

Participate actively in class discussions (using hand raise feature)

Keep calculators handy

Being absent minded when you don’t understand the concept in discussion

Trying to prove your colleagues wrong about their point of view

Leaving MS Teams session till I have announced the class as ended

Cause disturbance to others (keeping your mic open or DM class mates)

Wasting time in merely copying the slides

Sensitivity: Internal Management Accounting
 Knowledge carried forward

Sensitivity: Internal Management Accounting

Knowledge carried forward

Past Accounting Knowledge

• O&A Levels / M.Com / ACCA / CA / ICMA

Professional Experience
• Job Description (current or past)

Interaction with Management

• As part of your job or informally

Business Accounting
• 1st Semester

Sensitivity: Internal Management Accounting

 Course Outline

Sensitivity: Internal Management Accounting

Course Outline

Reporting

Budgeting Costing

Performance
Measurement

Sensitivity: Internal Management Accounting

 Capabilities expected from You
1. Control systems required for materials, labor and overheads
2. Classify and analyze cost data for job & process accounting
3. Costs for short-term decision-making
4. Difference between marginal and absorption costing
5. Budgetary control including working capital management
6. Purpose of standard costing and variance analysis
7. Know how to appraise investment projects.

Sensitivity: Internal Management Accounting

 Grade Breakup

Sensitivity: Internal Management Accounting

Grade Breakup

Weightage

Final Exam 30%

Class Assignments 20%

Class Participation 5%

Quizzes 25%

Project / Group Activity 20%

Sensitivity: Internal Management Accounting

 Basics of Management Accounting

Sensitivity: Internal Management Accounting

Management Accounting vs Financial Accounting

Sensitivity: Internal Management Accounting

Role of management accounting in an organization
The management information system of an organization is likely to be able to
prepare the following:

• annual statutory accounts (ref. Business Accounting)

• budgets and forecasts
• product profitability reports
• cash flow reports
• capital investment appraisal reports (ref. Financial Management)
• standard cost and variance analysis reports
• returns to government departments, e.g. Sales Tax returns.

Sensitivity: Internal Management Accounting

Attributes of good information

A. Accurate
C. Complete
C. Cost effective
U. Understandable
R. Relevant
A. Accessible
T. Timely
E. Easy to use!

The main functions that management are involved with are:

• Planning
• Decision Making
• Control

Sensitivity: Internal Management Accounting

Strategic, tactical and operational planning

Sensitivity: Internal Management Accounting

Responsibility accounting
A cost center is a production or service location, function, activity or item of equipment
whose costs are identified and recorded.

A revenue center is a part of the organization that earns sales revenue. It is similar to a
cost center, but only accountable for revenues, and not costs.

A profit center is a part of the business for which both the costs incurred and the revenues
earned are identified.

Managers of investment centers are responsible for investment decisions as well as

decisions affecting costs and revenues.

Sensitivity: Internal Management Accounting

 Do keep in touch!

0345 8506336 amd.aff@gmail.com

Ahmed Jawad Syed Ahmed Jawad Hussaini

ahmedjawad23 Ahmed Hussaini

Sensitivity: Internal Management Accounting