JAIPURIA INSTITUTE OF MANAGEMENT

PGDM; TRIMESTER II; ACADEMIC YEAR 2019-20

Course Code and title FIN201: Management Accounting

Credits 1.5

Term and Year II Term, 2019 -20

Course Pre-requisite(s) Accounting Fundamentals

Course Requirement(s)

Course Schedule (day and time of class) As per time table

Classroom # (Location) MA (307), MB (306), SM (104)

Course Instructor Prof Ravi Agarwal

Email [email protected]

Telephone Number (for office Ext. 356

appointments)

Student Consultation Hours Wednesday (1:00pm – 4:00pm)

Office location Faculty offices, #2, 1st floor

1. Course Overview
Management Accounting and Control seeks to create value by providing effective tools for
planning, analysis and control, which furnish information that is useful for decision making at all
levels in the organization. The course introduces a number of cost and management accounting
tools and quantitative techniques that can be used to analyze how business processes consume
resources, create value for a firm and its customers, and how this value may be enhanced through
activity and process improvement. Major topics include cost behavior, cost analysis, profit
planning and control measures.

Financial accounting provides information of firm’s financial condition and results of its
activities through three standard financial statements, i.e., the Balance Sheet, Income Statement
and Statement of Cash Flows. Management Accounting and Control is the next phase in
accounting which deals with evaluating the information not provided by financial accounting and
is essentially meant for internal use of management. It incorporates cost accounting with an aim
to ascertain costs, control costs and in the long run reduce costs. This course focuses on decision
facilitating information for improvement in specific decisions such as to set better prices, to cut
costs productively, to plan product mix, or to make better allocation of resources and has crucial
managerial uses for planning, implementing and controlling the firm’s activities. This course,
thus, incorporates the analysis and effect of all relevant information for improvement in specific
managerial decisions.
The course is divided into three modules. Module 1 provides the students the concept and
applications of cost and management accounting. Module 2 deals with the cost-volume-profit
(CVP) analysis and its application in managerial decision making. Module 3 is accounting for
planning and control of organization and essentially covers budgetary control. This course
includes cases to analyze and apply the concepts in practical business problems involving
costing tools followed by class discussion. The case analyses help students to take a position, to
understand and appraise the arguments of fellow students and to reach to optimum decision.

2. Course Learning Outcomes

On successful completion of the course you should be able to:

1. Estimate relevant cost components for business decisions.

2. Apply relevant cost information for decision making.
3. Prepare financial budgets for efficient planning and effective control.

3. Mapping of CLOs with PLOs

PLO*/CLO** CLO1 CLO2 CLO3
Classify Cost Interpret relevant cost Apply management accounting
information for decision techniques for planning &
making control
PLO-1
Communicate effectively
and display inter-personnel
skills
PLO-2
Demonstrate Leadership and
Teamwork towards
achievement of
organizational goals
PLO-3 √(Moderate) √(Low)
Apply relevant conceptual
frameworks for effective
decision-making
PLO-4
Develop an entrepreneurial
mindset for optimal business
solutions
PLO-5
Evaluate the relationship
between business
environment and
organizations
PLO 6
Appreciate sustainable and
ethical business practices
PLO-7
Leverage technologies for
business decisions
PLO-8
Demonstrate capability as an
Independent learner
 Linkage of * Program level Outcome (PLO) with **Course Learning Outcome (LO)

Mapping CLOs to GAs

GA 1 GA 2 GA 3 GA4 GA5 GA6 GA7 GA8

CLO 1
CLO 2 X
CLO 3

4. Text Book

James, J. (2012). Managerial Accounting (5th Edition), Wiley India Pvt Ltd, New Delhi

5. Assessment Criteria

Component Description Weight

Quizzes There will be two Moodle quizzes (10 marks each), 20%
one before the end of sixth session and the second
before the end of twelfth session.
Quiz 1- CLO1
Quiz 2- CLO2
Case Analysis Group assignment of submission of case analysis 20%

(CLO1 & CLO2)

Project/Assignment A group project assignment would be given to help 20%

the students to develop a business plan (Including
preparation of cost sheet, pricing of the product and
performing the CVP Analysis of the product) (viva-
voce also conducted for all groups related to their
submitted project).

(CLO1 & CLO2)

Sit-in Examination It will cover sessions 1-12 (CLO1 & CLO2 & CLO3) 40%

Total 100%

Assessment Task Description

1. Quiz 1:
Weightage: 10% (refer detailed Rubrics for evaluation at the end).
Description: There will be two quizzes administered through Moodle with sequential
layout and individual performance will be assessed. Question bank of minimum 30
questions to be created for a quiz of 10 questions. Quiz questions: 20% basic, 50%
intermediate and 30% advanced level.
Expectation from students:
 Quiz 1: To be able to estimate relevant cost components for business decisions
Quiz 2: To be able to apply relevant cost information for short term decision, CVP
analysis, and pricing decision.
Suggested time to devote to this task: 2.5 weeks for 1st Quiz
5 Weeks for 2nd Quiz
Submission details: Moodle based quiz
Feedback and return of work: Marks will be announced immediately after quiz
completion. Qualitative Feedback will be given in the succeeding session.
Pre/In/beyond class: In Class

2. Case Analysis
Weightage: 20% (refer Rubrics for evaluation at the end)
Description: This would be a spreadsheet and word document (500 words, single spaced,
12 font) with supporting Excel data file.
Expectation from the students: Estimation of relevant cost components and applying
cost information for business decisions.
Academic Integrity: Every group has the option to “fire” from the group the members
who chose to engage in social loafing and contribute marginally towards the project work.
Such students will be required to take a separate project from the instructor to do on their
own and their evaluation will be done out of 10 marks only as the remaining 10 marks
would be deducted from their overall marks at the end of the term. The marks of the group
will be applicable to all its members.

Late submissions: will not be accepted. The onus of confirming submissions lies with the
groups. Only one assignment per group will be accepted. Multiple assignments will be
seen as failure to comprehend the submission guidelines and will have a reflection in
marks awarded to the group. The last date to submit the project is 5th December 2019.
Suggested time to devote to this task: 5 Weeks
Submission details: Soft copy upload on LMS
Feedback and return of work: Feedback will be given within 1 week after
assessment.
Pre/In/beyond class: Beyond class

3. Group Project
Weightage: 20% (refer Rubrics for evaluation at the end)
Description: This would be a word document (1000 words, single spaced, 12 font) with
supporting Excel data file.
Expectation from the students: Estimation of relevant cost components and applying
cost information for business decisions.
Academic Integrity: Submissions without a turnitin report on similarity index will not be
accepted. The similarity index should not be more than 20%. Every group has the option
to “fire” from the group the members who chose to engage in social loafing and contribute
marginally towards the project work. Such students will be required to take a separate
project from the instructor to do on their own and their evaluation will be done out of 10
marks only as the remaining 10 marks would be deducted from their overall marks at the
end of the term. The marks of the group will be applicable to all its members.

Late submissions: will not be accepted. The onus of confirming submissions lies with the
groups. Only one assignment per group will be accepted. Multiple assignments will be
seen as failure to comprehend the submission guidelines and will have a reflection in
marks awarded to the group. The last date to submit the project is 6th December 2019.
Suggested time to devote to this task: 5 Weeks
 Submission details: Soft copy upload on LMS
Feedback and return of work: Feedback will be given within 1 week after
assessment.
Pre/In/beyond class: Beyond class

3. End Term Examination

Weightage: 40%
Level of questions: 20% basic, 50% intermediate and 30% advanced level
Description: Will be based on full course and will consist of estimation of relevant cost,
take business decision by applying relevant cost information and prepare budget.
Expectation from the students: Student should be able to apply relevant cost
components for taking business decisions.
Suggested time to devote to this task: 5-6 Week (1.5 hours daily)
Submission details: End Term Examination (Scheduled by Exam Office)
Feedback and return of work: Feedback will be given within 2 weeks of the exam

List of Topics/ Modules

Topic/ Module Contents/ Concepts

Module 1: Introduction to Costing Goals of cost and managerial accounting; Cost

classification for manufacturing and services; cost
sheet and ABC system.

Module 2: Managerial Decision Making Cost-volume profit analysis; Use of cost

information in decision making; Incremental
analysis; Pricing decisions.

Module 3: Tools for Cost Planning and

Control Budgetary Planning and Control

7. Session Plan

Session Topic/ Sub Topic Reading Pedagogy Session Learning CLO

Reference Outcomes

I. Introduction to Costing

1 Goals of Cost and Text Book Ch.1 *Discussion Understanding of CLO1

Managerial primary goals of
Accounting pp.3-11 managerial
accounting and
knowledge of cost
terms used in
planning, control and
decision making
2 Cost Classification Text Book Ch.2 *Numerical Ability to understand CLO2
for Manufacturing pp.37-46 Exercise and distinguish
and Service between product and
Companies *Discussion period costs, direct
costs and overheads
and types of costing
system

3 Cost Sheet Text Book Ch.2 Understanding of how CLO1

pp.47-51, 55-57 direct costs and
*Numerical overheads are applied
Exercise to jobs

*Discussion

4 Activity Based Text Book Ch.6 *Numerical Ability to distinguish

Costing & its Exercise between Traditional
Application pp. 218-227 and ABC methods.

Understand how
*Discussion overhead costs are
applied to
jobs/products

5 Activity Based Text Book Ch.6 *Numerical Ability to distinguish CLO1

Costing & its Exercises between Traditional
Application pp. 218-227 and ABC methods.

Understand how
*Discussion overhead costs are
applied to
jobs/products

II. Managerial Decision Making

6 Cost-Volume-Profit Text Book *Numerical Understand common CLO2

Analysis Ch.4 Exercises cost behavior patterns

pp.121-126 Understand the

concept of breakeven
pp.134-146 analysis, implications
*Discussion of operating leverage
from financial
decision making
perspective and What
if analysis for
decision making
7 Cost-Volume-Profit Text Book *Numerical Understand the
Analysis Ch.4 Exercises concept of breakeven
analysis, implications CLO2
pp.134-146 of operating leverage
*Case from financial
Analysis decision making
perspective and What
if analysis for
decision making
*Discussion

8 Use of Cost Text Book *Numerical Analyze decisions like

Information in Ch.7 Exercise additional processing,
Management Decision make or buy and CLO2
pp.258-268, dropping a product
Making
273-274 line using cost
*Discussion
concepts and
qualitative
considerations

9 Incremental Analysis Text Book *Numerical Using incremental

Ch.7 Exercise costing and
understanding CLO2
pp.258-268 qualitative
*Case considerations for
Analysis decision making

*Discussion

10 Pricing Decision Text Book *Numerical Understanding the

Ch.8 Exercise profit-maximizing
price, fixation of CLO2
pp.297-309 prices for special
*Case orders and analyzing
Analysis customer profitability

*Discussion

III. Tools for Cost Planning and Control

11 Budgetary Text Book *Numerical Making master and

Planning-Budgets Ch.10 Exercise functional budgets and CLO3
for Financial pp.371-384 using Excel use them as a tool for
Planning; Types of planning
Budgets *Discussion
 12 Budgetary Control Text Book *Numerical Explaining why and how CLO3
Static vs Flexible Ch.10 Exercise flexible budgets help in
Budgets pp.384-389 using Excel performance evaluation
and planning
*Discussion

Time budgeting in course planning:

Please note that while assigning activities and planning teaching schedules following table may
be of help. The weightage of items in the table is prescriptive and may vary according to course
requirement. Yet it is indicative of how student time per course can be budgeted:

Time
Activity Description
Budgeted
2-3 hours per week for 12 weeks (as
Classes 15 hours
per schedule of programme office)
Reading Prescribed readings and making notes 7.5 hours
Preparation of set questions,
Including shared and group exercises 15 hours
exercises and problems
Preparation of assignment Reading and writing 7.5 hours
Study and revision for test and end
Self-preparations 7.5 hours
of Trimester examination
TOTAL 52.5 hours

Additional Readings / References

 Hansen, D.R. and Mowen M.M. (2013). Management Accounting (8th Edition) Delhi:
Cengage Learning.
 Atkinson, A. A., Kaplan, R. S., Matsumura, E. M., Young, S. M., & Kumar, G. A. (2014).
Management Accounting: Information for Decision Making and Strategy Execution (6th
Edition) Delhi: Pearson Education.
 Horngren, C. T., et al (2018). Cost Accounting: A Managerial Emphasis (16th Edition).
Delhi: Pearson Education.
 Drury, C. (2017). Management and Cost Accounting (10th Edition). New Delhi: Cengage
Learning India Pvt Ltd.

Internet Resources

 www.accountingcoach.com/
This website has details on all accounting topics. It has an exhaustive glossary of
accounting terms. Apart from explaining various accounting concepts, this website has
host of other interactive tools like Quizzes, Questions & Answers, Crosswords, and
templates to practice the concepts.

 www.aaahq.org
This is the website of American Accounting Association. The American Accounting
Association promotes worldwide excellence in accounting education, research and
 practice. This website contains a digital library which has exhaustive archive of
accounting publications. It also has latest accounting news and research articles.

 www.accountingtoday.com
AccountingToday.com is a leading provider of online business news for the tax and
accounting community, offering breaking news, in-depth features, insightful editorial
analysis, and a host of Web-related resources and services. This website would help
students to keep abreast with the latest in the field of accounting.

 www.icmai.in
This is the website of Institute of Cost Accountants of India (ICMAI). It provides updated
information on the Act, Rules and Guidelines to be followed by cost accountants in India.
It also publishes Management accounting guidelines and guidance notes. The website
should be referred to keep abreast with the latest in management and cost accounting in
India.

Students are also advised to read leading business dailies such as The Economic Times, Business
Standard, and Hindu Business Line regularly for getting the latest updates.

Institute’s Policy Statements

It is the responsibility of every student to be aware of the requirements for this course, and
understand the specific details included in this document. It is emphasized that this course
requires a significant commitment outside of formal class contact. The learning tasks in this
course may include classes (lectures or seminars), required reading, the preparation of answers
to set questions, exercises and problems, and self-study. In addition, students may be required
to complete an assignment, test or examination.

LMS-Moodle/Impartus

LMS-Moodle/Impartus is used to host course resources for all courses. Students can download
lecture, additional reading materials, and tutorial notes to support class participation.

Late Submission

Assessment tasks submitted after the due date, without prior approval/arrangement, will be not
be accepted. Requests for extension of time must be made with the faculty member concerned
and based on Special Consideration guidelines.

Plagiarism

Plagiarism is looked at as the presentation of the expressed thought or work of another person
as though it is one's own without properly acknowledging that person.

Cases of plagiarism will be dealt with according to Plagiarism Policy of the institute. It is
advisable that students should read the relevant section of Student Handbook for detailed
guidelines. It is also advisable that students must not allow other students to copy their work
and must take care to safeguard against this happening. In cases of copying, normally all
students involved will be penalised equally; an exception will be if the student can demonstrate
the work is their own and they took reasonable care to safeguard against copying.