SOUTHEAST UNIVERSITY

Southeast Business School(SBS)

MBA Program
Course Title: Managerial Accounting
Course Code:
ACT5113/ACT513 Semester: Summer 2021 Section: 1

Instructor: Afroza Sultana

Lecturer
School of Business Studies (SBS), Southeast University.
e-mail: afroza4ar@yahoo.com/afroza.sultana@seu.edu.bd

Course Description:
This course examines the principles, techniques, and uses of accounting in the planning and
control of business organizations from a management perspective. Identified are the budgetary
process and related performance evaluation techniques, cost-volume-profit relationship, product
costing methods, Just-In-Time (JIT) manufacturing, and Activity Based Costing (ABC). Related
theory and application will also be reviewed.

Course Objectives:
The objective of this course is to develop students’ understanding of basic concepts of
managerial accounting as a major source of relevant information for decision making. Specific
objectives of this course are:
a) To describe what managers do and why they need accounting information;
b) To apply management accounting techniques in Planning, control, and Decision making;
c) To give ideas about cost terms, concepts and classifications;
d) To explain the importance of cost behavior and their relationship with managerial decision
making;
e) To give elementary idea about budgets and budgetary control;
f) To discuss various methods of segment performance measurement; and
g) To introduce techniques of generating relevant information for decision making.

Teaching Method:
The traditional one way lecture deliberation method of teaching will be discouraged. Prior
study of reading assignments will be a must. Students in a group should distribute discussion
topics and reading materials among them to present those in the class. Discussion, reasonable
arguments and counter arguments will be encouraged. The teacher will play a supervisory role.
English will be the medium of communication in the class.

Required Texts:
1. Ray H. Garrison, Eric W. Noreen, and Peter C. Brewer. Managerial Accounting (McGraw-
Hill Irwin) 15th edition
2. L. G. Rayburn. Cost Accounting: Using a Cost Management Approach (IRWIN).
Reference Texts:
1. C. T. Horngren, G. Sundem and W. O. Stratton. Introduction to Management Accounting
(Prentice Hall).

Class Schedule:
Lecture Details Chapter Title)
No.
Managerial accounting: an overview Chapter 1
Introduction to the course; Structure of the course; Definition of
management accounting; Evolution of management accounting,
01
Financial vs. management accounting; Cost vs. management
accounting; Role of management accounting; Management
accounting in service organization.
Cost Classification and Cost Behavior Analysis: Chapter 2
Classification of costs into different categories, Analysis and
2,3
measurement of cost behavior; Methods of segregating costs into
fixed and variable costs, related Mathematical Problem.
Cost-Volume-Profit Analysis: Chapter 5
Assumption and uses of cost-volume-profit (CVP) Analysis;
Graphical approach to CVP analysis; Breakeven analysis;
4,5 Computations of breakeven point, Margin of safety; Target profit;
Tax implications; Degree of operating leverage (DOL); Effects of
changes in various aspects, CVP analysis under multi-product
situations; Limitations of CVP analysis.
6 Basic discussion on job order costing. Chapter 3
Job-order costing: introduction, main features, advantage and
disadvantages; Job costing procedure; Determination of overhead
rate, Preparation of job cost sheet; Determination of over.
Midterm Exam
7
8,9 Activity-Based Costing: A Tool to Aid Decision Making : Chapter 7
 Nonmanufacturing Costs and Activity-Based Costing, Manufacturing
Costs and Activity-Based Costing ,Cost Pools, Allocation Bases, and
Activity-Based Costing , Designing an Activity-Based Costing (ABC)
System, Steps for Implementing Activity-Based Costing , Define
Activities, Activity Cost Pools, and Activity Measures , The Mechanics
of Activity-Based Costing
Budgeting Chapter 8
Budget, forecast and budgeting; Purposes of budgeting; Benefits
of budgeting; Budgeting process; Types of budgets and their
10
interrelationship, Preparation of functional budgets: cash budget,
Preparation of functional budgets: master budget; Budgeted
income statement; Budgeted balance sheet.
Flexible Budgeting Chapter 9
Flexible budgeting; Flexible budget vs. static budget;
11 Characteristics of flexible budget; Advantages of flexible budget;
Preparation of flexible budget, Flexible budget and variance
analysis.
Variable Costing: Chapter 6
Concept of variable costing; Importance of variable costing;
Difference between variable and absorption costing; Determining
cost under variable costing, Inventory valuation under absorption
12 and variable costing; Preparation of income statement under
absorption and variable costing; Reconciliation of profit,
Comparison of inventory and profit under variable and
absorption costing with multiple-year data; Effects in budgeted
fixed cost for over-/under production.
Review
Final exam

COURSE GRADING COMPONENTS

Students participated in this course will be assessed for grading based on class participation,
assignment, term paper and exams including three quizzes, two mid terms, and final exams. It is
highly expected that students will participate in all components of assessment with due care, and
will maintain regularity, consistency and integrity in all cases. Proper guideline and instruction
for assignments and term paper will be delivered in class time to time. Any late submission of
assignments and term papers will obviously be RECEIVED with proportionate PENALTY.

The Final Grade will be based on the following scheme.

 Marks Distribution

Distribution Marks

Class Participation 5%

Quiz 10%

Term Paper/ Assignment 15%

Midterm 30%

Final Exam 40%

Total 100%

Grades will be assigned based on the policy of Southeast University.

Best of luck