Apeejay School of Management

Post Graduate Diploma in Management (PGDM)

Trimester II (Batch 2009-11)
(November 2009- January 2010)

MANAGEMENT ACCOUNTING

TEACHING PLAN

Objective: The objective of this course is to develop an understanding of how to use

accounting information for profit planning, cost control, and managerial decision-
making.
(Priya Gupta)
S. No. TOPIC Reference
1. Management Accounting- An Overview Ch.1-Hilton
 Meaning, Definitions, Objectives, Functions, Ch.1-Horngren
Scope, Utility, Limitations Ch.1-Khan&Jain
 Installation of Management Accounting System Ch.1-
 Tools and Techniques Ravi.M.Kishore
 Financial and Management Accounting- A
Comparison
2. Basic Cost Concepts Ch.2-Hilton
 Cost Concepts Ch.5-Khan&Jain
 Elements of Cost Ch.1-
 Cost Classification Ravi.M.Kishore
 Cost estimation and Cost ascertainment
 Cost allocation and Cost apportionment
 Cost reduction and Cost control
3. Single or Output Costing Ch.11-Khan&Jain
 Costing Procedure
 Cost Sheet
 Items excluded from cost sheet
 Treatment of Scrap
4. Cost Analysis for Managerial Decisions Ch.8&15-Hilton
 Cost-Volume-Profit Analysis Ch.2-Horngren
 Break-Even Analysis Ch.15-Khan&Jain
 Margin Of Safety Ch.3-
 Decisions involving alternative choices Ravi.M.Kishore
 Approaches to decision making including
pricing and product-mix decisions
5. Cost Analysis For Control Ch.10-Hilton
 Standard Costing-Meaning, Suitability and Ch.18&19-
Limitations Khan&Jain
Ch.5-
  Variance Analysis Ravi.M.Kishore
 Direct Material Variance
 Direct Labour Variance
 Overhead Variance
6. Budgeting and Budgetary Control Ch.11-Hilton
 Meaning of Budget and Budgetary Control Ch.8-Horngren
 Budgeting and Forecasting Ch.16-Khan&Jain
 Installation of Budgetary Control System Ch.4-
 Classification of Budgets-Preparation Ravi.M.Kishore
 Fixed and Flexible Budgeting
 Control Ratios
 Zero Base Budgeting
7. Activity Based Costing Ch.5-Hilton
 Traditional Costing System Ch.4-Horngren
 Activity Based Costing System Ch.16-
 Steps in Overheads Allocation Ravi.M.Kishore
8. Target Costing Ch.15-Hilton
 Pricing Decision Ch.5-Horngren
 General Influence on Pricing in practice
 Key principles of target costing
 Cost plus Pricing
9. Responsibility Accounting Ch.12-Hilton
 Meaning and Objectives Ch.21-Khan&Jain
 Assumptions and Steps Ch.9-
 Types of Responsibility Centres Ravi.M.Kishore
 Cost, Profit and Investment Centres
10. Transfer Pricing Ch.13-Hilton
 Meaning of Transfer Pricing Ch.10-Horngren
 Methods of Transfer Pricing Ch.10-
 Indian position Ravi.M.Kishore

Suggested Readings: -

1. Horngren, Sundem, Stratton, Introduction to Management Accounting,

Prentice-Hall.
2. Ronald W Hilton, G Ramesh, M Jayadev, Managerial Accounting, Tata
McGraw Hill.
3. M Y Khan, P K Jain, Management Accounting, Tata McGraw Hill.
4. Ravi.M.Kishore, Advanced Management Accounting, Taxmann.

Internal Assessment: -

Mid term Exam 15 Marks

Assignment 20 Marks
Attendance 05 Marks

TOTAL 40 Marks