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Reading and understanding cost accounting is one of the best investments a management student can make. This is so, because the success of any business organization depends on how cost accounting concepts and practices are put to use. The input from this subject will immensely help managers in planning and control. Knowledge of cost accounting always goes to help make better decisions. The decision making emphasis of this subject can be evident from the popular expression: different costs for different purpose. In a sense, cost accounting is a managerial tool for strategy formulation and implementation.

The focus will be on concepts, analysis, uses and procedures. Application of the concepts and procedures will be demonstrated through case based discussion to simulate real would situations. The objectives of this course would be

1. Use of cost information for decision making
2. Use of costing tools for managerial control
Session Details

Session	Topic	Issues to be Discussed	Minicase/Case	Reading Material	Assignment
1	Introduction	Systems perspective of accounting, financial accounting, cost accounting and management accounting, limitations of financial accounting, Decision making process, Cost Management-a strategic perspective, value chain overview, Factors affecting cost management, Roles of Management Accountant, Functions, use of cost information, ethical dimensions, basic terms	Regal Marine Case, B &L Case	Chapter 1 of the text book
2 & 3	Cost Terms and Concepts	Cost, Types of cost, Cost driver, Cost Unit and Cost Center, Cost flow through accounts, use of cost concepts for decisions and control	Three dog bakery	Chapter 2 of the text book
4 & 5	Marginal Costing	Fixed cost and variable cost-separation, CVP relationship, Marginal costing vs. Absorption costing, BEP, Contribution margin approach, CVP analysis, Multi-product case, Application of CVP analysis in decision making, Assumptions and limitations of CVP analysis	Bohemia Industries	Chapter 3 of the text book
7 & 8	Cost Accounting	Cost Accumulation, Assignment-tracing and allocation, Cost Driver, Inventoriable cost and Period cost, Prime cost, Overheads- Allocation, Departmentalization and absorption, Under and Over-absorption, Cost Sheet	Seligram Inc.	Chapter-15 of the text book and handout	Assignemtn-1: Case to be given in the class before two days
9 & 10	Decision making and relevant information, Pricing	Relevant cost/irrelevance, Opportunity cost, Differential cost and decision making, Make or Buy, Accepting orders, Product line, Equipment replacement, Sell or further process Short run and long run pricing, cost and non-cost factors for pricing		Chapter 11 & 12 of the text book and Handout

Portion for Mid-Term : Till session 5

Portion for End-Term : All the sessions

Course Evaluation (Total 100 Marks)

It shall be done through term examinations and quizzes. All examinations will be open book system. The students can carry the prescribed text book only to the examination hall.

Weightage for different components is as under:

Evaluation Component	Weightage
A. (Surprise) Quizzes	40 %
B. Mid-Term	30 %
C. End-Term	30 %

QUIZZES

The quizzes will be objective in nature. Marks secured by the student in all quizzes will be added and converted to 40 % weigtage mark on a scale of 100.

MID-TERM

This will be conducted after the 5th session. The duration shall be for about 2 hours. The questions will be a mix of numerical problems and case-let/case. This will be for 30 points.

END-TERM

Mix and duration are at par with the Mid-Term.

Assignment: Will be case discussions. Students (at random) will lead the discussion.

Compulsory readings:

Cost Accounting – A Managerial Emphasis by Horngren, Dattar and Foster

Handout to be given from time to time

Reference books:

1. Advanced Management Accounting by Kaplan & Attinson (PHI)
2. Cost Management – A Strategic emphasis by Blocher, Chen and Lin (McGraw Hill)
3. Readings in Management Accounting by S Mark Young – Prentice Hall
4. Cost Accounting by Vashist and Saxena
Created By: Hemanta Ranjan Deo on 09/06/2011 at 11:12 AM
Category: PGPRM-I Doctype: Document