Harambe University College

Department of Accounting and Finance

Robe Campus
Course Information:
Course Name: Cost and Management Accounting II
Course Number: AcFn 322
Credit Hours: 3
Instructor: Hussen A.

Course Objective:
This course is a continuation of and builds on the knowledge acquired from cost and Management
Accounting I, giving emphasis on the applications of cost accounting concepts, techniques, procedures,
and tools for decision making purposes. It helps to provide relevant and value-adding information useful
in the course of managerial (internal) decision making processes, i.e. in the analysis, planning, and control
of businesses.

Course Description:
Topics covered include: the budgeting process (master budgets, flexible budgets, and analysis of
variances); cost-volume profit analysis and its applications for managerial decisions, relevant information,
pricing, and managerial decision making;

Course Out line

Chapter One: Cost Volume Profit (CVP) Analysis
 The break event point
 Methods for break even analysis; equation and contribution margin method
 BEP and revenue mix
 Role of income tax
 Production yield variance
Chapter Two: Master Budget and Responsibility Accounting
 The budget concept
 The master budget
Chapter Three: Flexible Budget and Variance Analysis
 Static budget
 Flexible budget
 Variance Analysis
Chapter Four: Decision Making and Relevant Information
 Decision making
 Relevance
 Various applications
Chapter Five: Decentralization and Transfer Pricing
 Decentralization
 Profit centers
 Transfer pricing
Evaluation Scheme
 Attendance, Assignment, Class participation & Quiz……………30%
 Mid-term Examination………………………………………………..30%
 Final Examination……………………………………………………..40%
Total 100%
Text Book: Cost Accounting: A Managerial Emphasis- Horngreen, Foster and Datar, 9th, 10th, 11th 12th
editions.
Reference Books: Any Cost and Managerial Accounting Book