Javid Iqbal

Assistant Professor
Department of Management Sciences
COMSATS Institute of Information Technology,
Islamabad
 Education
• M.Sc in Accounting (Pass with Distinctions, August 2007-June 2009)
Graduate School, School of Business, Economics and Law,
Gothenburg University, Sweden
 
• Master of Business Administration in Finance (2004-2006)
Department of Business Administration
University of Sargodha, Pakistan
 
• Master of Commerce in Accounting (2001-2003)
Hailey College of Commerce
University of the Punjab, Pakistan

• Bachelor of Commerce (1999-2001)

Hailey College of Commerce
University of the Punjab, Pakistan
 DISTINCTIONS & AWARDS

• Rotary International Student House (RISH) has selected

one of the top five international students from Gothenburg
University, Sweden.

• Awarded distinction on master project (Thesis) presented to

fulfill the requirement of Master of Science in Accounting
degree.

• Awarded cash prize and certificate on project of European

financial crises
 EXPERIENCE

• Assistant Professor
– COMSATS Institute of Information Technology, Islamabad
– (2009 to till date)

• Research Fellowship
– School of Business, Economics and Law, Gothenburg University, Sweden
– 2009

• Lecturer
– University of Education, Lahore, Pakistan
– 2006 to 2007

• Lecturer
– Hi-Aims College of Commerce, Jauharabad
– 2004 to 2005
 RESEARCH INTERESTS

• Financial Disclosure,

• Financial Regulations,

• Financial Statements Analysis,

•
• Accounting Practices,

• Management Accounting
End of Profile
Managerial
Accounting
MGT
Managerial Accounting
MGT
Basic Course Outline
 Basis of Managerial Accounting
• Managerial accounting is concerned with the
use of accounting information to managers
within organizations to make business
decisions for better management control
functions on the resources of the
organizations.
 Introduction to Multinational Corporations
(MNC)
• Types of Businesses
• Types of Business Organizations
• Define MNCs
• Goals of MNCs
• Published financial statements
• Theories of International Business
• International Business Methods
Changing the Roles of Managerial Accounting
in Dynamic Business Environment

• Managerial Accounting and its role in management

process
• Objectives of Managerial Accounting
• Managerial Accounting vs Financial Accounting
• Organziational chart
• Major Themes in Managerial Accounting
• Concepts of Strategic cots managment and value
chain
 Basic Cost Managment Concepts
• Distinguish between cost, product cost, period cost and
expenses
• Types of manufacturing cost
• Cost of goods sold, and income statment for manufacturer
• Behavior of variable and fixed costs, in total and per-unit
basis
• Direct, indirect, controllable and uncontrollable costs
• Opportunity cost, an out-of-pocket, sunk cost, defferential
cost, marginal cost and average cost
• Practice Questions
Product costing and cost accumulation
• Product and service costing in manufacturing and
non manufacturing firms
• Distinguish between job order and process costing
• Predetermined overhead rate
• Enteries of record costs of direct material, direct
labor and FOH
• Two stage process used to compute departmental
overheads
• Practice Questions
Process Costing and Hybird Product Costing
systems
• Similarities and differences between process
costing and Job order costing
• Journal entries to record the process costing in
sequential manner
• Equivalent units uner weighted average process
costing
• Cost per equivalent units
• Departmental production report
• Practice Questions
 Activity Based Costing
• Product costs under a traditional, volume based
costing system
• How an activity based costing system operates
• Two stage procedure for cost assignment and
selection of cost drivers
• Product cost under activity based costing
• Three criteria for selecting cost drivers
• Activity based costing in service industry
• Practice Questions
 Cost volume Profit analysis
• Break Even point using contribution margin and
equation approach
• CM ratio and break even in sales
• CVP analysis to determine effect on profit change
in fixed, variable, sales price and sales volume
• Assumptions of CVP analysis
• Role of Cost Structure and operating leverage in
CVP relationships
• Practice Questions
 Budgeting
• Capital Expenditures budget
• Research and Development Budgets
• Cash Budgets
• Budgeted Balance sheet
• Zero-based Budgets
• Pert
 By-Product and Joint Product Costing

• Difficulties in costing By-Products and joint

products
• By-Products and joint products defined
• Nature of By-Products
• Nature of joint products
• Methods of Costing By-Products
• Methods of joint products
• Practice Questions
 Variance analysis
• FOH over applied
• FOH under Applied
• Idle capacity Variance
• Spending Variance
• Practice Questions
 Recommended Book
Core texts:
• Managerial Accounting; Creating Value in a Dynamic Business Environment.
Latest edition; Ronald W.Hilton
• Managerial Accounting 14th edition; Ray Garrison
• Cost Accounting: 9th Edition Matz Usry

Online library
•  
• http://www.questia.com/Index.jsp
• http://www.managementhelp.org/
• http://www.businessbookmall.com
• http://search.bnet.com
 Chapter

1
Introduction to Managerial
Accounting and Cost
Concepts
 Types of Businesses
• Manufacturing
• Merchandizing
• Services business.
 Types of Businesses
Manufacturing Business

Product
Toyota Motors Cars, vans
Intel Computer chips
Nishat Textile
Nike Athletic shoes
Coca-Cola Beverages
Sony Stereos and television
 Types of Businesses
Merchandizing Business

Product
Metro Cash & Carry General merchandise
D.Watson Medicine
United Mobiles Mobile Phones
Amazon.com Internet books, music,
 Types of Businesses
Services Business

Product
PIA Transportation
Marriott Hotels Hospitality and lodging
HBL Financial Services
PTCL Telecommunication
There are three types of business
organizations

 Proprietorship
 Partnership
 Corporation
A proprietorship Advantages
is owned by one • Ease in organizing
individual. • Low cost of organizing

Disadvantage
• Limited source of
financial resources
• Unlimited liability
 A partnership is owned by two or more
individuals.

Advantages
• More financial resources than a proprietorship.
• Additional management skills.

Disadvantage
• Unlimited liability.
A corporation is organized under state or federal
statutes as a separate legal entity.

Advantage
• The ability to obtain large amounts of
resources by issuing stocks.
• Limited liability
Disadvantage
• Double taxation.
• Difficult process to establish
 Formation of Corporations
• Promotion Stage
• Incorporation Stage
• Raising of Capital Stage
• Commencement of Business Stage
 What is MNC
• A multinational corporation (MNC) or
enterprise (MNE), is a corporation or an
enterprise that manages production or delivers
services in more than one country. It can also be
referred to as an international corporation.
• an MNC as a corporation that has its
management headquarters in one country,
known as the home country, and operates in
several other countries, known as host countries.
 Goals of MNC
• Commonly accepted goals of an MNC is to
maximize shareholders wealth.
• “ most common form of ownership of US.
Based MNCs, and it enables financial
managers throughout the MNC to have single
goal of maximizing the value of the entire
MNC instead of maximizing the value of any
particular foreign subsidiary.”
Constraints interfering with the MNC’s Goal

• Environmental Constraints
– Building Codes, Disposal of production waste materials and
pollution control
• Regulatory Constraints
– Taxes, currency convertibility, earnings remittance, employee
rights, and other policies that affect cash flows of a
subsidiary established there
• Ethical Constraints
– There is not consensus on standard of business conduct that
applies to all countries. A business practice is perceived to be
unethical in one country may be totally ethical in another.
 Managing within the constraints
• Using the world wide code whatever the cost
companies have to bear just to enhance their
credibility in the markets.
 Overview of Lecture 01
• Course Outline
• Types of Businesses
• Types of Business Organizations
• Formation of Corporations
• What is MNC and Goals of MNC
• Constraints interfering with the MNC’s Goal
• Managing within the constraints
• End of Lecture 01