COURSE TITLE: Managerial Accounting

II. COURSE CODE: FAC203

III. COURSE CREDITS (L:T:P): 2:0:0

IV. TOTAL CONTACT HOURS/ WEEK (L:T:P): 2:0:0

V. COURSE TYPE (MAJOR/UWE/CCC): Major / UWE

VI. PREREQUISITE/S (IF ANY): None

VII. COURSE COORDINATOR(S)/INSTRUCTOR(S): Dr.Ragupathy M B

VIII. SCHOOL/ DEPARTMENT: School of Management and Entrepreneurship

IX. DISCIPLINES TO WHICH THE COURSE MAY BE OF INTEREST: All

X. Course Description & Objective

Three major components completes this course, viz, (a) Understanding and analyzing financial statements (b)
earnings quality issues associated with interpreting financial statements and (c) assembling and analyzing
cost data for pricing, control and planning. It provides a foundation in analyzing firm performance and its
operational efficiency; additionally, it also works as a necessary base for getting deeper into the world of
corporate finance. The pedagogy will consist of class exercises and short cases.

XI. TEXT BOOK:

Anthony, R.N., D.F. Hawkins and K.A. Merchant (2007) Accounting: Text and Cases, 12th Edition,
Tata McGraw Hill, New Delhi.

XII. RECOMMENDED BOOK(S):

1. Accounting and Finance for manager (2012) by Ghosh, T.P.

2. Taxmans fundamentals of financial accounting (2012) by Deepak Sehgal

XIII. ASSESSMENT SCHEME:

Group Assignment 30%

Mid term 30%
End Term 40%
 Module 3: Broad contours of cost accounting for managerial purposes
Module objective: transforming financial account data into cost accounting purposes that may be used for
product pricing and control purposes.
Session 16 Cost sheet and common cost concepts
Session objective: Transforming accounting statements into cost statement
Readings: Chapter 17: Full costs and their uses [Pages: 590 506]
Exercise: Problems 17-1, 17-2 and 17-4
Session 17 Cost allocation and Product pricing
Session objective: Commonly used methods of allocating costs to various departments / divisions and to their
respective products / services
Readings: Chapter 18: Additional aspects of product costing systems [Pages: 527 to 539]
Exercise: Problems: 18-2, 18-3
Session 18 Job costing: Allocating costs for customized products
Session objective: Allocation of costs to the customized products in the presence of common costs
Readings: Chapter 18: Additional aspects of product costing systems [Pages: 519 to 527]
Exercise: Problems / case study to be distributed in class
Session 19 Joint product and by product costing
Session objective: Product pricing when common facility is used for more than one product before its being
sent for further processing
Readings: Chapter 19: Standard costs, variable costing systems, quality costs and joint costs [Pages:
585 to 588)
Exercise: Problems 19-2,

Module 3: Cost behavior, relevant costs and decision making

Module objective: to understand the behavior of cost and apply it to various decisional situations like, pricing,
sales targeting, profit planning, make-or-buy, special orders, etc,
Session 20 Variable costing and Product pricing
Session objective: classifies cost into fixed and variable; importance of marginal cost
Readings: Chapter 16: Behavior of costs [Pages: 456 477]
Exercise: Problems 16-2 and 16-3
Session 21 Breakeven point and the cost-volume-profit analysis
Session objective: examining the relationship among cost, volume and profit for pricing and profitability
related decisions
Readings: Chapter 16: Behavior of costs [Pages: 456 477]
Exercise: Problems: Case 16-1 Hospital supply, Inc.
Session 22 Decision-support and the relevant cost analysis Pricing, product mix and Make-or-
Buy decisions
Session objective: discusses an integrative case study that demonstrates the use of BEP analysis for various
managerial decisions
Readings: Chapter 16: Behavior of costs [Pages: 456 477]
Exercise: Case 16-3: Bill French (few more problems to practice)
Module 3: planning and control
Module objective: to discuss the applications of cost accounting data for planning, control and evaluation of
results.
Session 23 Establishing cost standards and analysis of variances
Session objective: discusses the first step in planning, i.e. establishing cost standards, scientifically
Readings: Chapter 19: Standard costs, variable costing systems, quality costs and joint costs [Pages:
571 to 578]
Exercise: Problem 19-4

Session 24 Analysis of cost variances

Session objective: Post-performance, evaluation of actual results with the cost standards; helps identify areas
of weak performance
Readings: Chapter 20: Production cost variance analyses [Pages: 606 619]
Exercise: Problems 20-1, 20-3 and 20-4

Session 25 Strategic planning and budgets

Session objective: discusses the types of budgets for various levels in the organization; process of budget
preparation
Readings: Chapter 24: Strategic planning and budgeting [Pages: 711 720; 728 730]
Exercise: Problems 24-2 and 24-3

Session 26 & 27 Flexible budgets

Session objective: Process of changing budget figures to reflect actual performance; evaluating actual
performance with the flexed budget targets
Readings: Chapter 24: Strategic planning and budgeting [Pages: 711 720; 728 730]
Exercise: Problem 24-1

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