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INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA

COURSE OUTLINE
Kulliyyah / Institute Department / Centre Programme Name of Course / Mode Course Code Economics & Management Sciences Accounting ENM Management Accounting Fundamentals ACC 1511 1. Prof. Dr. Maliah Sulaiman Room No: A320 Tel No.: 6196 4676 Email: maliah@iium.edu.my 2. Dr. Hairul Azlan Annuar Room No. : A335 Tel No. : 6196 4661 Email : hazalan@iium.edu.my 3. Sr. Suaniza Mamat Room No. : A338 Tel No. : 6196 4656 Email : suaniza@iium.edu.my 4. Sr. Aznizai Mohamad Email: aznizai@yahoo.com Rationale for the inclusion of the course / module in the programme Semester and Year Offered Status Level This course is a foundation course for management accounting, one of the key areas in accounting. It also provides a good and strong foundation for business and economics. Semesters I, II & III Core 1

Name (s) of Academic staff / Instructor(s)

Proposed Start Date Batch of Student to be Affected

Semester I, 2007/2008 Intake of 2007/2008 onwards Face to Face

Assessments

Total Student Learning Time (SLT)

Lecture

Total Guided and Independent Learning

Total Guided = 52.5 Total Independent Learning = 77.5

42

10.5

Total hours

= 130

Credit Value (hours) Pre-requisites (if any) Co-requisites (if any)

3 ACC 1001 Financial Accounting Fundamentals Nil The objectives of this course are to: 1. To comprehend the basic concepts of costs and appreciate the different classification of costs for various purposes; 2. To understand the various management tools in making informed decisions; 3. To appreciate the contribution made by information technology to management accounting. On completion of this course, students should be able to:
1. Define managerial accounting and describe its role in a

Course Objectives

commercial environment
2. Discuss the major differences between managerial and 3.

Learning Outcomes

4. 5. 6. 7.

financial accounting; Describe the various cost classifications to analyse cost within the business organization and to explain the relationship between cost behavior, cost estimation and cost prediction; Compare and contrast variable/marginal costing; Describe the basic concept of CVP analysis and its application in business decision making; Prepare functional budgets, income statements, balance sheet and a cash budgets; Demonstrate and apply the concept of relevant cost and benefit in special order, outsourcing, add/drop product line/segment and limiting factors decision. 8. Compute prices using cost plus pricing, target costing, and time and material pricing.

Skills Transferable Skills: Team work Critical Thinking IT skills

How they are developed Groups formation Groups Formation Groups Formation

Assessment method Group Exercise Group Exercise IT Assignment

Type of Assessment Teaching-Learning / assessment strategy Lecture Assignments Quiz and Group Exercise

Description Oral reports and judge colleagues works Group assignments, report and presentation 6 quizzes and 5 group exercises

Course Synopsis

This course is designed to equip students with the analytical tools required to understand the underlying cost concepts, management planning and decision making. The course focuses on the management accounting methods and techniques that help managers make more informed decisions in analyzing cost, volume and profit relationship, budgeting practices and its process, pricing and other short term decision making issues. Lecture, Discussion

Mode of Delivery

Assessment Methods and Type/Course Assessement State weightage of each type of assessment.

Mapping of course / module to the Programme Learning Outcomes

Learning Outcome of the course

Define managerial accounting and describe its role in a commercial environment Discuss the major differences between managerial and financial accounting Describe the various cost classifications to analyze cost within the business organization and to explain the relationship between cost behavior, cost estimation and cost prediction Compare and contrast variable/marginal costing

Programme Outcomes
01 02 03 04 05 06 07 08 09

1.

2. 3.

4.

5.

Describe the basic concept of CVP analysis and its application in business decision making Prepare functional budgets, income statements, balance sheet and a cash budgets Demonstrate and apply the concept of relevant cost and benefit in special order, outsourcing, add/drop product line/segment and limiting factors decision. explain the relationship between cost behaviour, cost estimation and cost prediction Compute prices using cost plus pricing, target costing, and time and material pricing

6.

7.

8.

Content outline of the course / module and the SLT per topic Weeks 1 Topics Chapter 1: Introduction The role of management and the need for managerial accounting information Managerial vs Financial accounting Managerial accounting in different types of organizations Chapter 2: Cost Behaviour And Estimation Basic cost management concepts Costs classification Cost behaviour patterns Using costs behaviour patterns to predict costs Cost estimation Learning Task/Reading (author/page) Hours 9 HiltonChapter 1 Quiz #1

HiltonChapter 2, 6 Quiz #2 GE #1

3&4

Chapter 3: Absorption And Variable Costing Theory of absorption costing and variable costing External and internal reporting Absorption costing vs variable costing and its impact on profit Chapter 4: Cost-Volume-Profit Analysis The basics of CVP analysis Break even analysis Target profit analysis Applying CVP analysis (safety margin, change in fixed expenses, change in the unit contribution margin) CVP analysis with multiple products Cost structure and operating leverage Assumptions underlying CVP analysis MID-TERM EXAMINATION Monday, 19/03/12 8:00 10.00 pm. MID-TERM BREAK: 27/03/12-01/04/12

18

HiltonChapter 8 Quiz #3 GE#2

5, 6&7

25

HiltonChapter 7 Quiz #4 GE#3

Coverage: until Chapter 4

8&9

Chapter 5: Profit Planning Budget Purposes of budgeting systems The master budget (sales budget, production budget, direct material budget, direct labour budget, manufacturing overhead budget, budgeted schedule of cost of goods manufactured and sold, budgeted income statement, budgeted balance sheet) The introduction of flexible budgets and performance report

27

HiltonChapter 9, 11 Quiz #5 GE#4

10 & 11

Chapter 6: Relevant Costs And Benefits Steps in decision making process Quantitative vs qualitative analysis Relevant costs and benefits Analysis of special decisions accept or reject special offer outsource a product or service adding or dropping product lines and other segments utilization of a constrained resource The Islamic perspectives on decision making Chapter 7: Cost Analysis For Pricing Decisions Major influences on pricing decisions Economic profit-maximizing pricing Cost plus pricing Absorption-cost pricing formula Variable cost pricing formula Strategic pricing of new products Target costing Pricing for service industry: Time and material pricing Competitive bidding Chapter 8: Islam and Management Accounting

18

HiltonChapter 14 Quiz #6 GE#5

12 & 13

18

HiltonChapter 15 Quiz #6

14

PowerPoint

Required references supporting the course 1. Hilton, R.W. (2011). Managerial Accounting: Creating Value in a Global Business Environment. (9th Ed). New York: McGraw-Hill. 2. Sulaiman, M. and Nik Ahmad, N.N. (2008).Management Accounting Fundamentals Questions (for internal circulation only). Recommended references supporting the course 1. Brewer, P.C., Garisson, R.H., & Noreen, E.W. (2008). Introduction to Managerial Accounting. (4th ed.). New York: McGraw-Hill. 2. Horngren, C.T. et al. (2009). Cost Accounting: A Managerial Emphasis. (13th ed.). New Jersey: Pearson Education. 3. Horngren, C.T. et al. (2008). Introduction to Management Accounting. (14th ed.). New Jersey: Pearson Education.

Prepared by: _______________________ Dr Hairul Azlan Annuar Assistant Professor Course Coordinator

Checked by: _______________________ Assoc. Prof. Dr Hafiz Majdi Abdul Rashid Head , Department of Accounting

Approved by: _______________________ Prof. Dr Khaliq Ahmad Dean, KENMS

1.

At the end of the programme, students are able to: Identify, classify, record, summarize and report economic events which affect organizations. Define and explain basic concepts in financial and managerial accounting as well as taxation, finance and audit, whilst incorporating the Islamic perspective where relevant. Prepare financial statements in accordance with nationally and internationally accepted financial reporting standards for organizations and groups of organizations. Perform simple and complex audits, apply essential finance concept, prepare tax returns and advise on tax matters in compliance with regulation and standards. Provide services to the community based on learned knowledge, and cooperate with different stakeholders for the benefit of the society (ummah). Behave in accordance with professional ethics and Islamic values. Communicate effectively with various stakeholders, whether verbally or in written form. Process and evaluate financial data and non-financial information, as well as suggest solutions to accounting issues taking into consideration professional ethics and Islamic values. Use, evaluate and manage information technologies and systems for the efficient attainment of organizational objectives; and demonstrate an ability to learn continuously and develop professionally in tandem with the changes in the business world. Analyze financial and non-financial information to make optimal managerial decisions, which are ethical, at the operational, tactical and strategic levels. Work collaboratively in a management team as well as demonstrate leadership qualities.

Knowledge

2.

Practical Skills

3.

Social skills and Responsibilities Value, Attitudes and Professionalism Communication Problem Solving and Scientific Skills Information Management and Lifelong Learning Skills Managerial and Entrepreneurial Skills Leadership and Team Skills

4. 5. 6.

7.

8.

9.