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MANAGERIAL ACCOUNTING

BS (BBA) – VII
Course Title : MANAGERIAL ACCOUNTING
 Course Number : BA (BS) – 611
Credit Hours: 03

Objective

The objective of this course will be concerned with providing information for the more day–to– day functions of control and decision–making. This will involve budgeting, cost accounting, variance analysis, and evaluation of alternative uses of resources.

Course Contents

    1. Introduction: Managerial Accounting
      1.1. A Perspective
      1.2. Cost Terms
      1.3. Concepts and Classification
    2. Responsibility Accounting and Cost Allocation Concepts
      2.1. Responsibility Accounting Centers and Performance Reports
    3. Cost Flows and Accumulation
      3.1. The Basic Cost Flow Model
      3.2. Cost Accumulation
      3.3. Merchandizing Organizations
      3.4. Manufacturing Organizations
      3.5. Services Organizations
    4. Costing Systems
      4.1. Job Order Costing Systems
      4.2. Process Costing System
      4.3. Hybrid Product Costing System
      4.4. Cost Management Systems for New Manufacturing Environment
    5. Cost Behavior and Estimation
      5.1. Cost Behavior Patterns
      5.2. Cost Estimation Methods
    6. Cost–Volume–Profit Analysis
      6.1. The Break Even Point
      6.2. CVP Analysis
      6.3. CVP with Multiple Products
      6.4. Cost Structure and Leverage Analysis
    7. Standard Costing System
      7.1. Standard Costs and Control
      7.2. Setting Cost Standards
      7.3. Overhead Application in a Standard Costing System
      7.4. Analysis of Cost Variances
    8. Differential Cost Analysis
      8.1. Differential Costs versus Variable Costs
      8.2. Differential Costs versus Total Costs
      8.3. Cost Analysis for Pricing Decisions
      8.4. Make–or–Buy Decision
    9. Variable Costing
      9.1. Variable Costing versus Full Absorption Costing
      9.2. Appropriateness of Variable Costing and Full Absorption Costing Methods
    10. Flexible Budgeting
      10.1. Static Budget versus Flexible Budget
      10.2. Sales Activity (Volume) Variance
      10.3. Profit Variance Analysis
      10.4. Variable
      10.5. Manufacturing Costs Variance
    11. Budgeting and Monitoring
      11.1. Framework of Budgeting
      11.2. The Master Budget Development Process
      11.3. Budgeting in Merchandising Operations
      11.4. Service Enterprising and Non–Profit Organization
      11.5. Budget Under Uncertainty
      11.6. Report for Monitoring

Recommended Books

  1. Garrison, (1996). Managerial Accounting. New York: McGraw–Hill.
  2. Hilton, R. W. (1995). Managerial Accounting. New York: McGraw–Hill.
  3. Hongren, C. T. (1998). Introduction to Managerial Accounting. Singapore: Prentice Hall.
  4. Keller, (2002). Management Accounting for Profit Control. New York: McGraw–Hill.
  5. Cowe, R. Royal Handbook of Managing Accounting. New Delhi: Gower Publishing.
  6. The Institute of Bankers Pakistan, (2007). Management Accounting for the Financial Services. Karachi: IBP.