Management Accounting

TRIBHUVAN UNIVERSITY SCHOOL OF MANAGEMENT

MBA Program

Management Accounting

Work Plan Fall 2013

Semester: MBA II Intake: Fall 2013 Credit: Three (3) Class days: Tuesday and Wednesday (11 AM 1 PM) Course facilitator: Rewan Dahal Email: [email protected] Cell no: 98511-36950

Course Information

Overview Any organizations long-term competitive success is critically dependent on

1. Its ability to appropriately organize and analyze high-quality information about its products, services, processes, organizationalunits, suppliers, and customers that fits its decision needs,

2. Its ability to act [rationally] on that information, and 3. Its ability to control its performance consistent with that

information. The term management accounting refers to the set of information concepts, models and systems that provide thisinformation and control for managers. This course will introduceyou to the modern concepts of management accounting.

The main objectives are to:

Understand how to analyze cost information to support decisionsthat are essential for long-term success in a companys competitive environment.

Comprehend the conceptual bases for long-run and short-run managerial decisions and determine what information is relevant to those decisions.

Consider the traditional tools and modern methods ofmanagement control and the use and analysis of managementaccounting information to support control.

Topics The following key topics will be emphasized: Management accounting: Information that creates value Cost management concepts and cost behavior Traditional cost management systems Activity-based cost systems Management accounting information for activity and process

decisions Cost information for pricing and product planning Management accounting and control systems: Assessing

performance over the value chain Motivating behavior in management accounting and control

systems The balanced scorecard Using budgets to achieve organization objectives

Teaching Materials

Teaching materials include a mix of case studies and a textbook.

Textbook: Atkinson, A. A., Kaplan, R. S., Matsumura, E.M., Young, S.M & Kumar, G. A. (2009). Management Accounting/5e. New Delhi: PearsonEducation Pvt. Ltd. Additional teaching materials, slides, cases, home assignments etc will bedistributed primarily via loose sheets (photocopies) prior to the relevantclass session.

Class Organization

We will follow a modified case-method style, which relies heavily on class participation, but with more guidance through specific questionsthan the pure case method. Students will be active participants in case discussions, providingsummaries of issues, analyses, and recommendations. To prepare forclass, they must read the assigned readings carefully and understand thetechniques described in them. They also need to carefully read casesassigned for class discussion.

Responsibilities The School of Management (SoM) has no tolerance for acts of scholasticdishonesty. The responsibilities of both students and faculty with regardto honor the system of SoM. Students have embarked on a first-class MBA experience and an MBA degree will be awarded individually uponcompletion. One of the facultys responsibilities is to assess the achievements of each member of the class and ensure that all who receivecredit for a course; a particular grade and/or the degree itself haveaccomplished what such recognition implies. These standards areessential not only to the maintenance of the academic integrity of the program but also its brand equity, an important part of its value to allgraduates.

Project Work Each student shall work on a research paper/work on the topic of theoryon their choice. The project must be submitted by the end of third month.

Qualifying Examination

The qualifying examination shall be organized after twelve weeks from the start of semester. The duration of the examination will be four hours. Students need to solve cases and answer them critically in their own words.

End Semester Examination

The end semester examination will be organized by the Office of Dean asprescribed format in the curriculum.

Course Outline The course largely follows the plan of the text book and cases. Howeverthe facilitator may include outside materials and examples designed toenrich the course.

Learning Activities

Lectures Discussions Homework assignments Class assignments Project and case works Library work Internet based learning Students presentation

Marking Scheme

Internal and external exam will carry the equal weights as follows:

Internal marking: Project work 20 % Qualifying examination 15 % Homework assignments 5 % Class work and library work 5 % Participation presentation 5 % 50 % External marking: End semester examination 50 %

Class Protocol

Please arrive on time. However, if you are running late, quietlyenter class and take a seat. I do not want for you to miss an entireclass because you were late.

If you need to leave a class early, please let me know prior to thebeginning of class.

Please remember to turn off your cell phones when you enterclass. The use of cell phones, PDAs, laptop computers, etc.,during class is prohibited as this is likely to be a distraction to others.

The keys to success in this class are to keep up with the readings,to complete all the assigned homework problems before class, andto ask me about items that remain unclear.

Please ask questions if you are confused about items discussed or if concepts remain unclear.

Detailed Work Plan

The following section provides detailed course structure and work plan.

Contents Course details Readings Problems and Cases

LH

1. Management Accounting: Information That Creates Value Management Accounting Information

Financial Vs Management Accounting Diversity of Management Accounting

Information Use of Management Accounting in Service

Organizations Management Accounting in the

Competitive Environment Behavioral Implication of Management

Accounting Information Ethics and the Management Accountant

Chapter - 1: Pages: 1 - 26

Problems: 1-18 to 1-22 Cases: 1-23 to 1-25

4 hrs.

2. Cost Concepts and Classification: Cost: Definition and Implications

Uses and Benefits of Product Cost Information

How Organization Create Costs: An Example

Cost Structure Today

Chapter 2: Pages: 27-83

Problems: 2-33 to 2-49 (optional: 2-39; 2-40 & 2-45) Cases: 2-50 to 2-52

5 hrs.

3. Traditional Cost Management Systems Kinds of Cost Information System

Job Order and Process Costing Systems Job Costing Multistage Process Costing Equivalent Units of Production


Problems: 3-35 to 3-49 (optional: 3-38 & 3-45)

Case: 3-50

5 hrs.

4. Activity-Based Cost Systems Costing in Manufacturing Industry

Activity-Based Costing Identifying Costs in Marketing: Selling and

Distribution Expenses Managing Customer Profitability Implementation Issues



Cases: 4-44 to 4-46

4 hrs.

5. Management Accounting Information for Activity and Process Decisions: Decision Making Using Cost Data

Make-or-Buy Decisions Production Layout Systems Inventory Cost Management Cost of Nonconformance and Quality

Issues Toyota System of Manufacturing


Problems: 5-41to 5-62 (optional: 5-51 & 5-61)

Cases: 5-63 to 5-66

6 hrs.

6. Cost Information for Pricing and Product Planning: Effect of Product Cost in Pricing and

Product Mix Decisions Short-Term Product Mix and Pricing

Decisions Long-Term Product Mix and Pricing

Decisions


Problems: 6-32to 6-52 (optional: 6-35 & 6-38)

Case: 6-53

6 hrs.

7. Management Accounting and Control: Assessing Performance over the Value Chain: Need for Management Accounting and

Control Features of Management Accounting and

Control System Target Costing Traditional Costing Vs Target Costing Kaizen Costing Environmental Costing Benchmarking



Case: 7-63 (optional: 7-64)

4 hrs.

8. Motivating Behavior in Management Accounting and Control System: Management Accounting and Control

Achieving Motivation Through Human Resources Model

MACS Design Using a Mix of Performance Measures Empowering Employees to be Involved in

MACS Design Rewarding Performance Through

Incentive System


Problems: 8-53 to 8 -76 Cases: 8 -77 to 8-79

4 hrs.

9. The Balanced Scorecard: The Balanced Scorecard

Vision, Mission and Strategy Objectives, Measures and Targets The Strategy Map and Balanced Scorecard Key Performance Indicators Scorecards Applying the Balanced Scorecard to

Nonprofits and Government Organizations Pitfalls of the Balanced Scorecard


Problems: 9-35 to 9-41 Cases: 9-42 to 9-47

4 hrs.

10. Using Budgets to Achieve Organizational Objectives: Capacity Planning with Flexible Resources

The Budgeting Process Illustrated Standard Costing Variance Analysis for Material and Labour Sales Variance Budgeting for Non-profit Organization Flexible Budgeting Process Behavioral Aspects of Budgeting


Problems: 10-55 to 10-87 (optional: 10-56; 10-70 & 10-81)

Cases: 10-88 to 10-93 (optional)

6 hrs.

Course Facilitator: Rewan Dahal Email: [email protected] Cell no: 98511-36950

Documents

Management Accounting