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ADM-MB16
MBA 2016-18: Term-II
Accounting for Decision-making
Credits
1.5
Faculty Name
Dr. Ranjan Dasgupta
Program
BM-(2016-18)(Sec-E & F)
Academic Year and Term
2016-17, Term-II
1. Course Description:
The course deals with cost information system. The cost information system is concerned with preparation of reports for internal users. This information system provides information for finding the cost of a product, services and other objects. It also helps in planning and control. Finally, it provides vital information for many managerial decisions. This course will help the students in understanding various cost concepts and will explain the principles involved in cost accounting information system.
2. Student Learning Outcomes:
·
Be able to understand the need for setting up a cost information system.
·
Be able to understand cost concepts and principles.
·
Be able to appreciate the usefulness of cost information in the decision-making process.
3. Required Text Books and Reading Materials:
Text Book:
1. Cost Accounting- A Managerial Emphasis by Horngreen, Datar and Rajan (14th Ed. [or 15th Ed.]) (Pearson).
References:
1. Cost Accounting by Bhabatosh Banerjee (12th Ed.) (PHI).
2. Handouts.
4. Tentative Session Plan:
Session 1:
Introduction to Cost & Management Accounting; A comparison between Financial, Cost & Management Accounting; Value chain analysis; Introduction to Cost terms & Cost-determination terms; Classification of costs; Direct & indirect costs; Cost behaviour patterns; Cost nature-behaviour relationships; Other cost concepts.
Readings:
Chapter 1 & 2 of Horngren, Datar and Rajan (P 2-17 & P 24-34) [14th Ed.]; Chapter 1 & 2 of B.Banerjee (P 1-21 & 22-42).
Session 2:
Business sectors & types of inventory; Product vs. Period costs; Cost flows; Prime costs & Conversion costs and calculation; Costs for application & management.
Readings:
Chapter 2 of Horngren, Datar and Rajan (P 34-46) [14th Ed.]; Chapter 2 of B.Banerjee (P 22-42).
Session 3:
Inventory management introduction; Costs associated; Managing and controlling inventory costs; EOQ; Discount model; JIT and MRP.
Readings:
Chapter 20 of Horngren, Datar and Rajan (P 838-852) [14th Ed.]; Chapter 3 of B.Banerjee (P 57-70).
Session 4:
Introduction to overheads; Allocation of overheads; Methods of allocation; Allocation of multiple support departments costs; Allocation of common costs; Over- and under-absorption.
Readings:
Chapter 15 of Horngren, Datar and Rajan (P 632-648) [14th Ed.]; Chapter 5 of B.Banerjee (P 200-273).
Session 5:
Activity-based costing (ABC) – Introduction; Method; ABC vs. Traditional method; ABM; ABC in managerial decision-making – A Case Study Example.
Readings:
Chapter 5 of Horngren, Datar and Rajan (P 154-176) [14th Ed.]; Chapter 6 of B.Banerjee (P 295-392).
Session 6:
Introduction to CVP Analysis; Contribution Margin & its Ratio; CVP & BEP Relationships; CVP Analysis applications under different situations/conditions; BEP & Target net income calculations.
Readings:
Chapter 3 of Horngren, Datar and Rajan (P 64-84) [14th Ed.]; Chapter 14 of B.Banerjee (P 534-629).
Session 7-8:
Budgetary control – Introduction to its process, Steps; Budgets – Introduction, Importance and Challenges, Role of budgets in management cycle, Types of budgets, Operational vs. Financial budgets, Static vs. Flexible budgets; Master Budget; Preparation of different types of budgets – practical examples.
Readings:
Chapter 6 of Horngren, Datar and Rajan (P 206-226) [14th Ed.]; Chapter 16 of B.Banerjee (P 656-724).
Session 9:
Standard Costing – Introduction, Differences with budgetary control, standard costs and its role in management cycle; Variance Analysis – Introduction, Use of variances in controlling costs; Understanding variance analysis through budgets – Static and Flexible Budget Variances; Types of variances – Direct materials, Direct manufacturing labour, Fixed and Variable overhead variances; Production-Volume Variance; Sales variances.
Readings:
Chapter 7 & 8 of Horngren, Datar and Rajan (P 254-267 & P 296-308 and 311-312) [14th Ed.]; Chapter 17 of B.Banerjee (P 725-795).
Session 10:
Case studies group discussions; Overall recap.
5. Evaluation:
1. Quiz: 15 marks
2. Assignments/Project: 20 marks
3. Class Performance: 10 marks
4. Group Discussions/Presentations: 15 marks
5. End-term Exam.: 40 marks
Total 100 marks
6. Academic Integrity:
As per Institute’s Norms
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Created By:
Alora Kar
on
09/12/2016
at
12:28 PM
Category
:
BM-I 2016-18 T-II
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