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Management Accounting (in English)

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About Course

Acc. 254003: Management Accounting (in English)
Course Objectives:
This course is planned for the graduate students of the department so that they realize the
importance of Management Accounting as a major source of relevant information for
decision making. Specific objectives of this course are:
(i) to describe what managers do and why they need accounting information;
(ii) to give ideas about cost terms, concepts and classifications;
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making;
(iii) to explain the importance of cost behaviour and their relationship with managerial
decision
(iv) to give elementary idea about budgets and budgetary control;
(v) to discuss various methods of segment performance measurement; and
(vi) to introduce techniques of generating relevant information for decision making.

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Course Content

Chapter-1 Introduction
Definition of Management Accounting; Scope and Functions of Management Accounting; Evolution of Management Accounting; Financial Accounting vs. Management Accounting; Cost Accounting vs. Management Accounting; the Management Accountant: the Controller Function; the Treasurer Function; Expanding Role of Management Accountants; Comparison between Traditional and Contemporary Role of Management Accountants; Management Accounting in Service and Non-Profit Organizations; the Management Accounting Profession; Standard of Ethical Conduct for Management Accountants.

Chapter-2 Cost Classification and Cost Behavior Analysis
Cost Classification for Decision Making; Cost Behavior; Analysis and Measurement of Cost Behavior; Methods of Segregating Costs into Fixed and Variable Costs (High-Low Method; Inspection of Accounts/Accounts Classification Method; Engineering Method; Ordinary Least Square Method); Contribution Format of Income Statement.

Chapter-3 Cost-Volume-Profit Analysis:
Assumption and Uses of Cost-Volume-Profit (CVP) Analysis; Breakeven Analysis; Computations of Breakeven Point and Shutdown Point; Graphical Approach to CVP Analysis; Margin of Safety; Degree of Operating Leverage (DOL); CVP Analysis Under Multi-Product Situations; Limitations of CVP Analysis.

Chapter-4 Activity Based Costing
Traditional Costing System; Application and Limitation; Definition of ABC; Treatment of Cost under Activity Based Costing; Designing an Activity Based Costing System; Identifying Activities that Use Resources; Cost Drivers and Choosing Cost Drivers; Assigning Cost using Activity Based Costing; Benefits of ABC; Comparison of Traditional and ABC Product Costs; Criticism of ABC.

Chapter-5 Budgeting and Budgetary Control
Budget, Forecast and Budgeting; Purposes of Budgeting; Benefits; Applicability of Budgeting and Budgetary Control; ¬Budgeting Process; Types of Budgets and their Interrelationship; Preparation of Functional Budgets; Cash Budget; Master Budget; Budgeted Income Statement; Budgeted Balance Sheet; Role of Budgeting in Service and Not-for -Profit Organizations; Behavioral aspects of Budgeting.

Chapter-6 Flexible Budgeting
Flexible Budget vs. Static Budget; Limitation of Static Budget; Characteristics of a Flexible Budget; Advantages of Flexible Budget; Preparation of Flexible Budget; Flexible Budget and Variance Analysis.

Chapter-7 Relevant Information for Decision Making
The Concept of Relevant Cost; Using Relevant Cost Information in Decision Making; Make or Buy Decisions; Limiting Factor Analysis; Addition or Deletion of Products or Departments; Special Sales Orders; Sell or Process Further Decision; Replacement of Asset Decision etc.

Chapter-10 Performance Measurement:
Measuring and Managing Performance: Financial Performance Measurement and Non-Financial Performance Measurement; Assessing Performance over the Value Chain; the Balanced Scorecard; Motivating Behavior in Management Accounting and Control Systems.

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