ICFAI BUSINESS SCHOOL (IBS), IFHE, HYDERABAD.

BBA SEMESTER-IV
MA ACCOUNTING
Course Handout (AY 2023-2024)

Course Management Accounting Total Credits 3

Name of the Faculty Member Dr. N.S. Sudesh Room No. F114
Email id [email protected] Mobile No
Consultation Hours Monday 3.30pm to 4.30pm

Course Description
Management accounting equips the students with knowledge in fundamental principle of management accounting and skill in their application in a
business organization. It provides both theoretical and practical approach towards various management accounting tools and techniques. It covers
techniques of
costing used in ascertaining cost per unit and management accounting techniques used in managerial decision making.

Course Objectives The course is designed to ………………

1) To comprehend the basic principles, concepts and terms of Management Accounting

2) To apply the methods and procedures used to ascertain cost and extract cost information for decision making

3) To evaluate the basic tools and techniques for the interpretation of information for decision making under different situations
4) To understand the basic principles and contemporary practices of Management Accounting from a user perspective
Learning Outcomes At the end of the program, the student shall be able to ……………………………..
1) Develop required skills for ascertaining the cost per unit with different methods of costing
2) Demonstrate analytical skills in Managerial decision making through the application of marginal costing and CVP analysis.
3) Evaluate the Budgetary Control System
4) Implementation of cost control system in an Organization

Recommended Text Book Editi Auth Publisher

on or
Cost Accounting – Principles and Practice Twenty Sixth S.P Jain, KL Kalyani Publishers
Revised Edition, Narang, Simmi
2019 Agrawal and
Monika Sehgal,
Suggested Reference Books
Thirteenth Edition 2014 Gupta & Sharma KALYANI Publishers
Management Accounting, Principles and Practice
Cost accounting Fifth Edition 2015 Tulsian & Tulsian S. Chand & Company
PVT. LTD
A text book of Cost and Management Accounting Tenth edition 2015 Arora Vikas Publishing House
PVT LTD
 Detailed Course
Curriculum
Sessi Chapter Swayam/NPTEL/
Topic Key Concepts Session Learning Outcomes
on Reading Yo
No. utube Video
Links
1) Comprehend the meaning Introduction to
● Meaning and Definitions of and definitions Management
of management accounting Accounting
Management Accounting
2) Understand nature, scope https://www.youtu
● Nature, Scope and and objectives of be. com/watch?
Objectives of Management management accounting v=bS1eE
Accounting 3) Enumerate Functions of 88gepk&list=PLLy
Introduction Management Accountant _2
to ● Functions of Management 4) Compare the management Part-V/ iUCG87D6w12QC
1-3
Managemen Accountant accounting with other Chapter- 1 X
t branches of accounting DGfaEa-
Accounting ● Management Accounting 5) Understand the limitations r_eVY33&index
Vs other branches of of Management =1
accounting Accounting
● Tools and Techniques used 6) Comprehend the
Installation process of the
in Management Accounting
management Accounting
● Limitations of Management system
Accounting
● Installation Process of
Management Accounting
System
https://nptel.ac.in/
● Relevant Costs cour
1) Enumerate v ok I’m ses/110/101/1101011
● Sunk Costs arious types of Costs 32/
2) Appreciate
● Shut-down Costs Characteristics of
 Cost Information
● Out of Pocket Cost
4 Cost Part-I/ Chapter-
● Opportunity Costs
Classification 2
● Imputed Costs

● Differential Costs

● Marginal Cost

● Replacement Cost
 ● Conversion Cost

● Committed Costs

● Discretionary Costs
http://digimat.in/
● Meaning of Cost Sheet nptel/
and Unit Costing courses/video/110107
1) Comprehend Cost Sheet
127/L09.html
● Applications of 2) Understand the
Part-I/
Unit Costing Meaning and
Cost Sheet & Chapter-2 &
5-8 Application of Unit
Unit costing ● Components of Cost sheet Part-
Costing
IV/
3) Preparation of a
Chapte
● Historical Cost Sheet statement showing
r-2
Vs Estimatked Cost Cost and Profit per
sheet unit
● Items to be excluded
from Cost Sheet
● Cost Centre

● Cost Unit /Cost Object

1) Understand the Job Costing -NPTEL
● Meaning, Definitions https://www.youtube.
Meaning, Advantages
and Features of Job c om/watch?
and Procedure of Job
Costing v=GNm2M JA-
costing, oGg&feature=emb_
● Applications of Job Costing 2) Discussing How i mp_woyt
Job Costing Part-
9 - 12 Material costs, Labour
& Batch IV/
● Advantages of Job Costing costs and overheads Batch Costing - ICAI
Costing Chapte
are accounted in Job https://www.youtube.c
r-1
● Job Cost Sheet Costing om/watch?v=Lu15sU
3) Understand the OV8BQ
meaning and features
● Meaning and features of Batch Costing
 of Batch Costing 4) Application of E.B.Q
● Applications of batch costing

● Optimum Batch size (E.B.Q)

● Set up Cost Vs Carrying Cost

13 in TEST-1
 Contract Costing
● Meaning and Features - ICAI
of Contract Costing https://
1) Comprehend the
www.youtube.c
● Applications of meaning of Contract om/watch?v=5gJwslZ
Contract Costing Costing 7xUw
Part-
14 - Contract Costing 2) Analyze the difference
● Job Costing Vs IV/
17 between Job Costing
Chapte
Contract Costing and Contract Costing,
r-1
3) Discuss the Procedure
● Work Certified Vs for Contract Costing
Work Uncertified
● Retention Money

● Notional Profit
Process Costing:
https://www.youtu
be. com/watch?
● Meaning and Features v=GNm2 MJA-
oGg (NPTEL)
of process costing
● Appreciate the Meaning
● Applications of https://
of process costing
Process Costing www.youtube.
● Enumerate the Procedure Part- com/watch?
18 - Process Costing
● Difference between Job of Process Costing IV/ v=7x1Y2 apUx-I
21
costing & Process Chapte
Costing ● Analyse the impact of r-4 Difference between
Normal Loss, Abnormal Job costing &
● Normal Loss, Abnormal
Loss and Abnormal Gain Process Costing:
Loss and Abnormal Gain in the ascertaining cost https://www.youtu
(or Abnormal per unit be. com/watch?
effectiveness)
v=yhvXf
● Normal Loss Vs AC8AtA&t=1325s
Abnormal Loss (NPTEL)
 https://
● Meaning, applicability www.youtube.c
and basic Features of om/watch?
Service Costing ● Understand the v=EVQ_w2R 2Tso –
meaning, applicability Costing a Transport
● Cost units used in
and basic features of Service
Service service costing.
https://
● Costing ● Learn the Costing www.youtube.c
● Features of Transport method applied by om/watch?
Transportation industry Part-IV/ v=EjyLcwUy NtE –
22 – Service Costing Costing, Hospital Chapter Costing a Hotel
26 Costing , Hotel Costing ● Learn the costing method -3 Room
● Cost Classification in applied by Hospital
Industry https://
Transport Costing, www.youtube.c
Hospital Costing , Hotel ● Learn the costing om/watch?
Costing method applied by v=jNAKx9T9 otQ –
● Cost units used in Hospitality Industry Pricing a Hotel Room
Transport Costing, ● Learn the costing method https://
Hospital Costing , Hotel applied by I-T based www.youtube.c
Costing service Industry(like om/watch?v=Sqa-m-
online cab services, food AcYHE- costing in
● Cost Sheet of Transport
delivery services) Hospitals
Costing, Hospital
Costing , Hotel Costing
● Costing for IT-based
service companies
27 MID
TERM
https://www.youtube.c
● Meaning, ● Comprehend the meaning, om/watch?v=6QlVvL
objectives, assumptions of features and applicability COzww
CVP analysis of CVP analysis
Cost – https://www.youtube.c
● Profit-volume Graph ● Appreciate Cost- Part-V/ om/watch?v=fdqVhq
28 - Volume –
Volume- Profit Chapter- 4&5 OcrmI
30 Profit (CVP) Analysis
Analysis ● Marginal costing Vs https://
Absorption costing ● Comprehend the www.youtube.c
Marginal costing om/watch?v=SeWdfq
● Fixed Cost Vs Variable q-YBg
Income Statement
Cost
● Understand the
● Marginal Costing Income applications of CVP
Statement Analysis –
● Contribution Margin ● Analyze Profit-Volume
 Graph t https://nptel.ac.in/
● Profit/Volume Ratio cour
ses/110/101/1101011
● Break-Even Analysis 32/

● Margin of Safety
https://www.youtube.c
om/watch?v=6QlVvL
● Relevant costs Vs Irrelevant ● Enumerate the Steps in COzww
Applicatio Decision-making
Costs https://www.youtube.c
n of process –
Marginal ● Differential costing om/watch?v=fdqVhq
● Comprehend and compare OcrmI
Costing,
the Concept of Relevant Part-V/
31 – Absorptio ● Key factor https://
Cost and Irrelevant Cost Chapter- 5
34 n Costing www.youtube.c
and ● Sales Mix Decisions ● Appreciate the Costs om/watch?v=SeWdfq
Differential q-YBg
costing for Decision making
● Make or buy decisions
techniques ● Comprehend https://nptel.ac.in/
for Decision cour
● Accept or Reject Decisions Differential Cost
making ses/110/101/1101011
Analysis 32/
● Sell or Process Decisions ● Discuss how the
Decision making is make
● Purchasing or under different business
Leasing Decisions situations
Standard Costing -
● Understand the Meaning https://www.youtub
● Standard Cost of Standard Cost and e.c om/watch?
Standard Costing – v=CBfYhmy GofY
and Standard
Costing ● Discuss the Need of https://www.youtub
Standard e.c om/watch?
Standards and Various Part-V/
35 - Costing and ● Installation of v=_nWoH7C
types of Standards – Chapter- 3
37 Variance Standard Variance Analysis -
Analysis Costing system ● Determination of Standard https://www.youtub
e.c om/watch?
Cost for different elements
 of Costs v=gcwAxkTh PhE
● Advantages of wi2U
Standard ● Computation and Analysis
Costing system of Variances
● Variance Analysis

● Material Variance Analysis

● Labour Variance Analysis

 https://
● Budget, Budgeting www.youtube.c
and Budgetary om/watch?
Control v=0OJ2PIGi wJE
● Objectives of ● Comprehend the concept of
Budgetary Control Budgets & Budgetary
system Control
Budgets and
● Advantages and ● Enumerate Classification Part-V/
38 – Budgetary
Limitations of Budgetary of Budgets Chapter- 2
43 Control System
Control system ● Appreciate the preparation
● Fixed Budget Vs of Budgets
Flexible Budget
● Understand the
● Functional Budgets emerging concepts
like Zero-based
● Sales Budget Budgeting,
Performance
● Production Budget Budgeting etc.,

● Direct material
Purchase Budget
● Manpower Budget and
Direct Labour Cost Budget
● Cash Budget

44 TEST-2
Activity Based
● Differentiate between Costing
● Cost reduction Vs https://www.youtub
cost reduction and cost
e.c om/watch?
cost control control
v=KOr9fNN6 G7E
Emerging ● Comprehend the meaning Part- Target costing :
45 – Concepts in VII/ https://www.youtub
48 Cost and purpose of various Chapte e.c om/watch?
● Activity based costing
Management Advanced Cost Concepts rs- v=_AS7n- 1wyvk
2,3,4,8, Kaizen Costing:
● Target costing ● Understand Objectives https://www.youtub
10
and main features of e.c om/watch?
● Kaizen Costing various Advanced Cost v=3ErIKOnv dCk
Concepts
● Life cycle costing ● Appreciate Benefits
and Limitations of
● Black Flush costing various Advanced
Cost Concepts
● Throughput –based
costing
 Life Cycle Costing:
https://www.youtub
e.c om/watch?
v=IepIoo_Kv 84
Black-flush costing:
https://www.youtub
e.c om/watch?
v=FXZgCzjv6 Fg

Throughput –based
costing:
https://www.youtub
e.c om/watch?
v=uZeFaYCe
TaM

Assessments and Evaluations:

Sl. Compone Weighta
No. nt ge
1 Class Participation – I (Pre-mid CP) 5%

2 Pre-mid Test (Test – I) Conceptual and Numerical (AOL) 15%

3 Mid-Term Exam (Test – II) (1.5 hour Examination) 20%
4 Class Participation – II (Post-mid CP) 5%
5 Pre-mid Test (Test – 2) Conceptual and Numerical (AOL) 15%
7 End Term Exam (3 hour Examination) 40%
8 Total 100%
Expectations from Students
a. Students must report to the respective sessions well before the announced time. Latecomers will not be permitted to join the class after
the scheduled time. If late, the attendance for that session will be marked as absent.
b. Read the case study/ material well prior to the class discussion. He/she is also expected to read the chapter indicated in the course plan as
the faculty directs.
c. In the class discussion, student is expected to participate actively and contribute to individual and group learning. Evaluation is based on
active participation.
d. Evaluation is a continuous process at IBS. Every student needs to be aware of the timelines given in the section below. Absence from
these evaluations will mean non awarding of marks in that particular component
e. Each faculty has been given a scheduled consultation hour. Utilize this time to meet the faculty and clarify doubts if any, seek
explanations and get mentored, if needed.