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Faculty Name: Rabia Sharif

COURSE OUTLINE (Fall 2020)

Course Name Managerial Accounting Prepared July 2015

Course Code ACC-260 On
Credit Hours 3
Course Prereq. Cost Accounting Revised
Code On Sep 2021
Course Type ACC-210
Program □Core Course □Elective
Semester □BBA □MBA
Instructor: Rabia Umer
Course Description
Managerial Accounting is concerned with application of accounting principles and
methodologies to business decision problems. In this course students will increase their
understanding of accounting and learn a variety of techniques that will allow them to solve
business problems relating to costs, prices, revenues, profits, financial planning and competitive
strategies.
The over-riding goal of the course is to make students better decisions makers in a business or
institutional context but the principles and techniques are also applicable to personal financial
and economic decisions. A subsidiary purpose of the course is to sharpen analytical skills so that
students will be better able to recognize and solve financial problems in different contexts.
The course accordingly is concerned with both theory and practice: the theory serves to sharpen
analytical skills, and the practice will give experience in the application of the principles and
techniques to real world business problems.
Sr. No PG1 PG2 PG3 PG4 PG5

CLO1 Understand cost concepts,    

objectives, scope, cost flow and
classification and the importance of
CGS and how it impacts income
statement..
CLO2 Develop information for   
managerial planning and decision-
making by using technique such as
cost volume-profit analysis.
CLO3 Explain how standards are set or   
revised in manufacturing or service
industries, compute and interpret
material, labour, overhead and
sales variances.
CLO4 Explain why a company prepares   

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 master budget; describe the
components of master budget.
CLO5 Describe the causes for changes in  
Net income using varable and
absorption costing
CLO Develop information for   
6 managerial planning and decision-
making by using technique of
make or buy decision, differential
cost and relevant cost.
CLO7 Emergence of ABC systems,   
Comparison of Traditional and
Activity Based Costing systems

Teaching & Learning Methodology

1.Guest lectures
2. Industrial trip
3. Home Assignments
4. Class Activities
5. Case studies at the end of each chapter
6. Final Project where students will have to visit any manufacturing firm and get data for their
project.
7. Video based activities.
Textbook(s)

Text Book: Managerial Accounting, By Garrison and Noreen,13th edition

Web Resources
 Business Recorder
 The Wall Street Journal
 Pakistan & Gulf Economist
 Financial Times
 Business Week
 Google

Reference Book(s)

 Managerial Accounting; Creating Value in Dynamic Business Environment.

By Ronald W. Hilton.,9th edition
 Cost Accounting Planning and Control, By Matz and Usry.,9th edition

Research Journals /Papers

2
Magazine Articles/ Published Material

Grading Policy
Assessment Instruments Percentage
Quizzes 15%
Assignments + project 20%
Mid Term Exam 25%
Final Exam 40%

3
Week-wise Course Outline

Activities( Critical Thinking)

Case Studies, Roleplays, Movie Clips,
Contents Assignments, Research Papers, Learning
Presentations Objectives
Addressed

Managerial accounting intro and Flipped class activity No 1: cost Understand cost concepts,
COST Classifications, classification objectives, scope, cost flow
 Field of Accounting. and classification.
 Introduction to Cost &
Managerial Accounting
 Scope of managerial accounting
 Difference between managerial
and cost accounting
 Classification of Cost.

COST of Goods sold statement Case study: cost of goods sold statement Understanding the importance of
 Missing figures CGS correction and its impact on income CGS and how it impacts income
 Calculation of per unit cost statement statement
Correction of wrongly prepared Cost of
Goods sold statement and income
statement
COST VOLUME PROFIT Develop information for
ANALYSIS managerial planning and
 Introduction, The breakeven decision-making by using
Point, contribution margin technique, of cost volume-
Approach. profit analysis
 Contribution Margin Ratio

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  Equation Approach
 Preparation of contribution
margin based income statement
COST VOLUME PROFIT Flipped class activity 2: CVP analysis Develop information for
ANALYSIS seeing impact of changes in VC, FC on managerial planning and
 Changes in Fixed Expenses and profitability. decision-making by using
impact on CM based statement technique, of cost volume-
 Changes in Unit Contribution profit analysis
Margin
 Changes in sales volume and
impact on CM based statement
COST VOLUME PROFIT Quiz 1: CVP
ANALYSIS
 Target Profit, Target Sales
 Margin of safety
 Multiple product break even
analysis
 Operating Leverage
VARIABLE COSTING Group activity: Variable costing Describe the causes for
 Introduction changes in Net income using
 Overview of Absorption and varable and absorption costing
Variable Costing
 Preparation of income statements
under absorption and variable
costing
 Reconciliation of net operating
income
ACTIVITY BASED COSTING Case study: ABC Costing Autotech Emergence of ABC systems,
SYSTEM company Comparison of Traditional and
 Introduction to ABC system of Activity Based Costing
costing systems
 Difference between ABC with

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 traditional costing system
 Traditional volume based product
costing system
 Activity based costing system,
two-stage procedure
 Assignments of costs to activity
cost pools
ACTIVITY BASED COSTING Quiz 2: ABC costing Emergence of ABC systems,
SYSTEM Comparison of Traditional and
 Identification of cost drivers for Activity Based Costing
activity cost pools systems
 Computation of activity rate for
activity cost pools
 Interpreting the ABC product
costs
 Comparison of product cost from
alternative product costing
systems
 Mid Term Exam

DECISION MAKING Develop information for

 Introduction to decision making
 Identifying relevant costs, sunk
costs, differential costs
 Opportunity costs
DECISION MAKING
 Addition or deletion of a product
or service or department
 Make or Buy decision
(outsourcing decision)
DECISION MAKING
 Acceptance or rejection of a
Flipped class activity: relevant costing
Quiz 3
managerial planning and
decision-making by using
relevant costing
Develop information for
managerial planning and
decision-making by using
relevant costing
Develop information for
managerial planning and

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 special order decision-making by using
Joint products, sell or process relevant costing
further decision
STANDARD COSTING Explain how standards are set
 Introduction to standard costing or revised in manufacturing or
 Setting standards costs, Ideal vs. service industries, compute
Practical Standards and interpret material, labour,
 Setting direct material, direct overhead and sales variances.
labour, variable overhead
standards
 Material Variances, direct
material price variance, direct
material quantity variance,
Responsibility for the variance

STANDARD COSTING Group activity: Standard costing Explain how standards are set
 Labour Variances, direct labour comprehensive question or revised in manufacturing or
rate variance, direct labour service industries, compute
efficiency variance, and interpret material, labour,
Responsibility for the variance overhead and sales variances.
 FOH variances
 Variable overhead spending
variance, Variable overhead
efficiency variance
 Fixed overhead budget variance,
Fixed overhead volume variance
BUDGETING Quiz 4 Explain why a company
 Introduction to budget and its prepares master budget;
objectives ,Advantages describe the components of
 Purposes of budgeting system, master budget.
types of budgets, capital budget,
financial budget

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 Fixed and Flexible budgets,
Incremental and Zero based
budget
 Operating and Continuous
Budgets
 Budget Committee
BUDGETING Group activity: Budgeting Explain why a company
 The Master Budget, Operational prepares master budget;
Budgets, Sales Budget, describe the components of
Production Budget master budget.
 Material, Labor and FOH Budget,
Selling Expenses Budget, General
and Admin Expenses Budget
 Cash Budget
BUDGETING Group activity: Cash budgets Explain why a company
 Budgeted cost of goods prepares master budget;
manufactured and sold statement describe the components of
 Budgeted income statement, master budget.
budgeted balance sheet
FINAL EXAMS
Guidelines – Final Group Projects

BBA Program Goals

PG1 – Ethical consideration and behavior

PLO 1: Inculcating ethical values and prosocial behavior among students through community support programs and other related activities.

PLO 2: Ensuring ethical considerations while making effective business decisions.

PG2- Analytical skills

PLO 3: Developing analytical skills by evaluating current and emerging business problems to enhance critical thinking of students.

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PG3 – Communication and interpersonal skills

PLO 4: Enhancing business communication skills for self and professional development through class room teaching, co-curricular and extra-
curricular activities.

PLO 5: Developing interpersonal skills by preparing students to work in teams in diverse professional environment to better understand and
respect the opinion of others.

PG4-Core business knowledge

PLO 6: Providing core knowledge in the field of management, marketing, finance, human resource, information technology, statistical analysis,
and research.

PLO 7: Imparting industry specific knowledge while bridging the gap between academia and industry.

PG5 – Technological skills

PLO 8: Depict knowledge and problem solving through technology based instructional design.

PLO 9: Instill among students the use of current technology through application of relevant and latest software across broad business domains.