Department of Finance, ICFAI University, Hyderabad

Management Accounting – BBA LLB

Course Handout

Course Name :Management Accounting Semester: 4

Instructor : Raveesh K E.Mail: raveesh@ibsindia.org. Mobile: 7095624373

Course Objective: This course is designed to provide the student with an understanding of:

 The basic principles, concepts and terms of management accounting

 The methods and procedures used to ascertain cost and extract cost information for decision making
 Basic tools and techniques for the interpretation of information for decision making under different situations
 The basic principles and contemporary practices of management accounting from a user perspective

TEACHING PLAN
Sec. No. Topic / Area Covered Detailed curriculum Chapter Reading
1 Nature and role and scope of Chapter 1- Management
Meaning and Emergence of Management Accounting – Characteristics and Accounting by Gupta and
management accounting.
Nature of Management Accounting – Scope of Management Accounting – Sharma
Objectives of Management Accounting – Management Accounting and
Financial Accounting – Management Accounting and Cost Accounting –
2 Introduction to Management Chapter 1- Management
Tools and Techniques of Management Accounting – Limitations of Accounting by Gupta and
Accounting terms and concepts.
Management Accounting – Installation of Management Accounting System Sharma
– Functions of Management Accountant.
3 Cost classification. Chapter 1. Cost Accounting -
Types of Costs – Cost Units – Cost Centers – Characteristics of Cos,t Tulsian.
Information – Costs for Financial Reporting Purposes – Methods of Costing
– Techniques of Costing – Statement of Cost or Cost Sheet.
4 -6 Statement of Cost Sheet and its Cost sheet, fixed, variable, semi-variable cost Chapter 7- Management Acct.
construction by Gupta and Sharma
7-9 Job Costing Meaning Advantages, Procedure of Job costing, how are material costs, Chapter 6. Cost Accounting -
labour costs and overhead accounted for in job costing? Tulsian.
10-11 Batch Costing Meaning, features, application, E.B.Q. Chapter 6. Cost Accounting -
Tulsian.
12-15 Unit or Output Costing Meaning, Application, Cost sheet, production statement. Preparation of a Chapter 5. Cost Accounting -
statement showing cost and profit per unit. Tulsian.
 16-18 Contract Costing Meaning, difference between job costing and contract costing, procedure Chapter 6. Cost Accounting -
for contract costing Tulsian.
19 PREMID TERM
20-22 Operating Costing or Service Meaning, transport costing, canteen costing, hotel costing, hospital costing Chapter 10. Cost Accounting -
Costing. Tulsian.
23-24 Process Costing Meaning, procedure of process costing, normal loss in process and Chapter 7. Cost Accounting -
abnormal loss in the process Tulsian.
MIDTERM
25-28 Joint Products and By-products Meaning of joint products, co-products and By-products Chapter 9. Cost Accounting -
Costing Tulsian.
29-33 Cost-volume-profit analysis Chapter 8- Management
Concept of Absorption Costing – Marginal Costing – Cost-Volume-Profit Accounting by Gupta and
Analysis – Applications of CVP Analysis – Profit-Volume Graph. Sharma

34-38 Application of Marginal Costing, Steps in Decision-making Process – Concept of Relevant Cost and Irrelevant Chapter 9- Management
absorption costing, and Cost – Costs for Decision-making – Differential Cost Analysis – Decision- Accounting by Gupta and
differential costing techniques making under Different Business Situations Sharma
for decision making.

39 POST MID TERM

40-43 Budgets and budgetary control. Budgets – Budgetary Control – Classification of Budgets and their Chapter 10- Management
Preparation – Zero-Based Budgeting – Performance Budgeting – Budget Accounting by Gupta and
Control Ratios – Forecasting and Theory of Constraints. Sharma
44-48 Standard Costing and variance Meaning of Standard Cost and Standard Costing – Need of Standards and Chapter 12- Management
analysis Various Types of Standards – Determination of Standard Cost for Different Accounting by Gupta and
Elements of Costs – Computation and Analysis of Variances – Control of Sharma
Variances – Accounting Procedure for Disposition of Variances
Recommended Text Book:

 Management Accounting: Principles and Practice by Gupta & Sharma, KALYANI Publishers, Thirteenth Edition 2014.
 Cost accounting by Tulsian & Tulsian, S. Chand & Company PVT. LTD, Fifth Edition 2015.

Suggested:
 Management Accounting by AnthonyA.Atkinson, Robert S.Kaplan, Ella Mae Mat sumura, Mark Young.S. andArun Kumar G.- Fifth
Edition –Pearson Publications.
 A text book of Cost and Management Accounting by Arora, Vikar Publishing House PVT LTD, Tenth edition 2015
 Management Accounting by Anantharayanan, Oxfort University Press, First edition 2015
Teaching Pedagogy:

Classroom lectures
Learner centered practice sessions involving solving problems
Continuous assessment through assignments, class tests, and projects.

Assessments and Evaluations:

 Pre-mid term assessments 20%
 Mid-term examination 20% (1.5 hour examination)
 Post-mid term assessments 20%
 End Semester Comprehensive Examinations 40% (3 hour examination)

Performance till Midterm will be announced by end of session No. 18 in each course which means each student will know his / her performance in one CP and
two NCPs. The final result will be declared after the end examinations. Before the student takes the end examination he / she will be aware of the progress in
each course up to an extent of 60 marks. Students not taking the evaluation according to the timelines mentioned above will not be given another opportunity
excepting in rare circumstances of extreme illness or hospitalization.

Expectations from Students

a. Students must report to the respective sessions well before the announced time. Latecomers will not be permitted to join the class after the scheduled
time. If late, the attendance for that session will be marked as absent.
b. Read the Case Study / material well prior to the class discussion. He/she is also expected to read the chapter indicated in the course plan as the faculty
directs.
c. In the class discussion student is expected to participate actively and contribute to individual and group learning. Evaluation is based on active
participation.
d. Evaluation is a continuous process at IBS. Every student needs to be aware of the timelines given in the section below. Absence from these evaluations
will mean non awarding of marks in that particular component
e. Wherever applicable, group assignments require each student to contribute to the group effort. This enhances group effectiveness and leads to greater
appreciation of working in groups.
f. Formal dressing is suggested for all students. Do not roam in the academic area/ attend classes in chappals / shorts / informal t shirts
g. Students are expected to show high regard and appreciation for in class discipline and desist from using mobile phones. This disturbs the class ambience
and unnecessarily diverts attention of other students as well as the faculty member.
h. Each faculty has been given a scheduled consultation hour. Utilize this time to meet the faculty and clarify doubts if any, seek explanations and get
mentored if needed.
i. Attendance is compulsory in all sessions. However refer to guidelines in your academic handbook for exceptions.