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Managerial Accounting

MBA – III
DBA – 611

Recommended Books:

  1. Managerial Accounting by: Horngern – Prince Hall
  2. “Introduction to Managerial Accounting” 1996 Garison, Ronald Whatt

COURSE CONTENT:

1. MANAGERIAL ACCOUNTING AND THE BUSINESS ORGANIZATION:

  • Accounting and Decision Making
  • Management Accounting in Service and Nonprofit Organization
  • Cost-benefit and Behavioral Considerations
  • The Management process and Accounting
  • Planning and Control for Product Life Cycle and the Value Chain
  • Accounting’s Position in the Organization
  • Career Opportunities in Managerial Accounting

2.   INTRODUCTION TO COST BEHAVIOR AND COST VOLUME

RELATIONSHIP

  • Activities, Cost and Cost Drivers
  • Comparison of Variable and Fixed Costs
  • Cost Volume Profit Analysis
  • Additional Uses of Cost Volume Analysis
  • Lowering the Break-Even Point
  • Nonprofit Application

3.   MEASUREMENT OF COST BEHAVIOR

  • Cost Drivers and Cost Behavior
  • Management influence on Cost Behavior
  • Cost Functions
  • Methods of Measuring Cost Functions

4.   COST MANAGEMENT SYSTEMS AND ACTIVITY BASED COSTING

  • Classification of Costs
  • Cost Accounting for financial Reporting
  • Cost Behavior and Income Statements
  • Activity Based Costing
  • Contribution Approach and Activity Based Costing
  • Cost Management Systems

5.   RELEVANT INFORMATION AND DECISION MAKING MARKETING

DECISIONS

  • The concept of Relevance
  • The Special Sales Order
  • Deletion or Addition of Products, Services or Departments
  • Optimal use of Limited Resources
  • Pricing Decisions
  • General Influences on Pricing in Practice
  • Role of Costs in Pricing Strategy
  • Target Costing
  • Target Costing ABC and Service Companies

6.    RELEVANT INFORMATION AND DECISION MAKING

  • Production Decision
  • Opportunity, Outlay, and Differential Costs
  • Make-or-Buy Decision
  • Joint Product Costs
  • An example of Make-or-Buy Outsourcing
  • Irrelevance of Past Cost
  • Sunk Costs and Government Contracts
  • Irrelevance of Future Costs That Will Not Differ
  • Beware of Unit Costs
  • Conflicts Between Decision Making and Performance Evalation

7.   MASTER BUDGET

8. FEXIBLE BUDGET