a

1. 1
INDIAN INSTITUTE OF MANAGEMENT TIRUCHIRAPPALLI
PGP 2014-16
MANAGEMENT ACCOUNTING
Course outline
Term: III Faculty: Professor V.Gopal
Credits : 2.0 Email: vgopal@iimtrichy.ac.in
Objectives of the course:
This is one of the fundamental courses in any management programme. This course
shapes the thinking of the student by exposing her/him to a series of concepts in
decision making. While financial aspects do dominate the decision making, the
emphasis will be on problem solving and finding operational and structural
solutions.
At the end of the course, a student is expected to be in a position to do the following:
1. To be able to understand the basic concepts in break-even analysis
2. To be able to appreciate the role and relevance of overheads in decision
making
3. To be able to analyse a given situation and apply the concept of activity based
costing to improving productivity and profitability
4. To be able to understand, prepare and implement a budgetary control system
There are 4 major parts of the course:
a. Cost behavior
b. Costing systems and measurement of costs
c. Activity based costing
d. Budgetary control systems
Pedagogy:
Primary methodology will be by exercise and class discussions. While, some sessions
will be based on discussions, there will be sessions with small exercises. Other
sessions will be based on class discussions. Students are earnestly requested to come
to class prepared with the reading material to derive full benefit from the course.
Resource materials:
1. Jiambalvo, James. Managerial accounting, Wiley India edition, 5th ed.
2. Antony A. Atkinson, Kaplan, Robert S, Matsumura, Ella Mae and Kumar,
Arun G. “Management Accounting: Information for Decision-making and strategy
execution”, Pearson, Dorling Kindersley (India) Pvt. Ltd. 2014
3. Reading material given by the instructor

2. 2
Assessment:
Break up of student performance assessment is given below:
1. Quizzes (MCQ)(best 3 out of 4) 3 x 10 = 30%
2. Assignments and short projects 30%
3. Class participation 10%
4. End term examination (MCQ) 30%
Preparation, Assignments and Integrity
This being a basic courses, students are advised to take it very seriously. Working on
assigned material and projects on time will ensure ‘value for money’ to students.
IIM Trichy, believes in absolute ethical behavior from all its constituents. Any case of
malpractice will be dealt with severely. The penalty will vary from cancellation of
marks in the particular component to permanent failure in the course. In severe
cases, the penalty might extend to censure and other institute level disciplinary
action.
Direct or indirect copying from any source, including internet, book, material
without complete referencing (please check with any faculty member) will be treated
as ‘malpractice’. All forms of plagiarism whether from an external source or from an
internal source including other students will be treated as severe malpractice.
Attendance:
Since, the programme is residential and it is rigorous professional course, all
students are expected to attend every class. In case of unavoidable circumstance a
student may miss a class, with prior approval from the instructor. However, regular
restrictions regarding ‘number of classes can miss without penalty’ etc. will be
governed by the general students rules and regulations. Kindly note that there will
be no make up examination/ extension of deadline will be allowed for any student
who has missed any component. This may be relaxed by course instructor in
exceptional cases, with prior approval from Chairperson, PGP. All applicable
penalties in such cases will be imposed.
Cases and problems refer to the prescribed text, unless otherwise mentioned.
Students are expected to come prepared for the class. Class participation will be
based on case discussion.

3. 3
SESSION PLAN
In addition, depending on the need, there will be additional class room as well as
tutorial sessions. All students are required to attend the same too.
Instructions regarding various assignments, case writing will be given as and when
necessary in class.
Sl.no Session
no.
Topic Reading exercise
1 1 Introduction to cost
accounting,
Types of costs
Chapter 1& 4 Problem 4-12
page 163-164
2 2 &3 Concept of fixed and
variable costs. Break even
analysis, Hierarchy of costs
Chapter 4
Break even
analysis in
marketing
Break even
analysis
Basic
quantitative
analysis for
marketing
Hierarchy of
costs from
Horngren,
Charles T et al.
Cost Accounting
a Managerial
emphasis
Case 4-2
Mayfield
software ,
Customer
Training
Page 168-169
3 4 Concept of shut down costs Lecture Notes by
instructor
Will be
distributed in
class
4 Quiz 1
5 5 Costing systems Chapter 2 Problem 2- 13
Page 80
6 6 Concept of overhead : job
order costing cost sheets
Allocation of overheads
Chapter 2 Case 2-3
Dupage
powder
coating
Page 83 - 84

4. 4
7 7, 8 & 9 Problems with overhead
allocation: ABC costing
Chapter 6
Introduction to
activity based
costing
Activity based
costing and
capacity
Problems 6-12
and 6 -14
Pages 248 to
250
Case 6-1 east
side medical
testing
Pages 253 - 254
8 Quiz 2
9 10 &11 Cost plus pricing
Activity based pricing
Chapter 8 Problem 8-4,
Problem 8-3
Problem 8-11
Pages 323, 324
and 326
Case 8-1
preston
concrete
Page 327
10 Quiz 3
11 12 & 13 Budgetary control systems
Variance analysis
Chapters 10 and
11
Standard cost
and variance
analysis
Variance
analysis and
flexible
budgeting
Note on variance
analysis and
flexible
budgeting
Problem
Problem 10 -15
and 10-16
Pages 412 –
413
Case:
University Day
Care Centre
HBSP Product
No. TCG 229
12 Quiz 4
13 Guest lecture : will be scheduled as per availability of the expert

5. 5
INSTRUCTIONS FOR ASSIGNMENTS
1. Assignment Set 1: make groups as per your seating in rows. So, each section
will have about 11 or 12 groups and not more than six students. Before every
class, case analysis is to be submitted as per groups. There are 5 cases and
total weightage for case submission (not more than 2 sides) is 10% (2 x 5)
2. Assignment Set 2: Keep the same groups. Prepare a 5 minute YouTube type
movie on a cost concept or budgetary control system. 5% weightage. I am
aware of the views of many of you. But, it is also to train you on multi-media
preparation.
3. Assignment Set 3: Budgetary control system in a company: Choose any
company . you may take the help of your friends and relatives too. Prepare a
note on budgetary and variance analysis adopted by the organization. I do
not want exact figures, as organisations will not part with actual figures. Keep
the same group as you had for case analysis. Weightage : 10%
4. Assignment Set 4: Keep the same group. Register your concept/ Chapter from
the book “Management Accounting “ by Atkinson et al. Write a term paper
on the concept. Contact me in person for guidelines. Weightage 5%