JAIPURIA INSTITUTE OF MANAGEMENT, LUCKNOW Post Graduate Diploma in Management Post Graduate Diploma in Management - RM TERM II (ACADEMIC YEAR

2011-12), SEC A, B Course Title: Accounting for Decision Making II (Course Code: 202) Course Instructor: Prof. Rashmi Chaudhary Number of Sessions: 24 Course Overview The course Accounting for Decision Making II deals with the Cost Accounting aspect. Cost accounting is one approach to managerial accounting that involves cost, budget and profitability. It helps the management in planning, controlling and decision making. It is generally concerned with internal reporting for management requirement. This branch of accounting has gained a lot of significance due to heavy industrialization and the overall cut throat competition that has been taking place in the market. It helps the management to have a clear indication of their economic performance, and the direction in which they must move in order to improve their economic efficiencies, and be helpful in solution of complex management problems, such as determination of most profitable mix, make or buy decisions, replacement of equipments, introduction of new products and discontinuance of non profitable products. The course will provide the student with a basic understanding of cost accounting so as to enable the student to take informed business decisions. It develops an insight into basic cost concepts; techniques and methods. It inculcate in students the skills which are required to apply the information generated by cost accounting and financial accounting for the purpose of management decision making both in the areas of profit planning and cost control. Learning Outcomes After undergoing this course, the participants will be able to: Calculate cost of a product / service. Do break even analysis Prepare various budgets Take various management decision for profit planning and cost control Pedagogy Lectures Case-lets Class room discussions Text Book Principles and Practice of Cost Accounting- Ashish K. Bhattacharyya (PHI) References Cost Accounting: A Managerial Emphasis Horngren (Pearson Education) 1 Course Credit: 3 Office Ext No: 276

Cost and Management Accounting - M.N. Arora Management and Cost accounting - Colin Drury Cost Accounting - I.M. Pandey Cost Accounting Jawahar Lal & Seema Srivastava, Tata McGraw Hill Cost Accounting M.Y Khan & P.K Jain Components Mid Term Examination End Term Examination Quizzes Project/Assignment Others Total Weightage % 20 40 20 20 100

Assessment Sl. 01 02 03 04 05

Description of Each Component: 1. Exercises: There shall be four exercises, equally distributed before and after mid-term examination. Each quiz will carry 5 marks. 2. Project/Assignment: It will be on group (group of 4 students) basis. Project/assignment will involve application of course content. 3. Mid-term Examination: It will be based on the syllabus covered till date. 4. End-term Examination: It will be based on entire syllabus.

Session Plan
Session Topic Methods / Case (With suggested questions) Text Book & Readings Chapter No.

Module 1: Fundamentals of Costing

1 2

Introductory Session Cost Accounting Terms

Discussion Discussion Principles and Ch. 1&2 Practice of Cost AccountingAshish K. Bhattacharyya (PHI)
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3-4 5-6

Cost Element, Preparation and Use of Cost Sheet Activity Based Costing

Mini Cases How to ascertain the cost per unit? Mini Cases How to use ABC system to allocate and ascertain cost?

Ch 3 Ch 11

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Module 2: Profit Planning

7-10

CVP Analysis Cost behaviour and cost drivers, cost functions, Relevant range Break even point computation and application

Mini Cases How to use cost volume profit analysis to ensure desirable results?

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Ch 17

Module 3:Decision Making

Relevant Costing/ Marginal Costing and Tactical DecisionsProduct Mix Make or buy decision Decisions on the method of Manufacturing Shutting down decisions Outsourcing Decision To Sell or further Process To Accept or Reject a Special Order To Continue or Abandon a Project Module 4: Cost Control 15-18 Budgeting different types of budgets and its utility 19-22 Standard Costing and Variance Analysis Cost, Revenue and Profit Variances: meaning , various types , factors responsible for unfavorable variances and measures to control them Management Control System Review Session

11-15

Mini Cases How to make a managerial decision using variable and absorption costing methods?

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Ch 18

Mini Cases How to prepare different types of budgets in order to control cost and ensure profits? Mini Cases How to use variance analysis to control cost?

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Ch 19

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Ch 20

23 24

Discussion

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Hand Outs