Cost & Management Accounting 2

Course Code:  AcFn 2092

Course Description:  The course builds on the knowledge acquired from the course entitled cost and Management Accounting and introduces some new concepts and uses of accounting tools and techniques in the analysis, planning and control of business operations and management decision making processes. Topics covered include: intensive review of the management decision making processes and nature of management information, examination of concepts and rationale underlying managerial accounting managerial methods, the budgeting process and standard costing, the investment decision and quantitative methods of evaluation.

Course Objective:  After successfully completing this course, the students should be  able to:

• Explain the importance of cost- volume- profit analysis;
• Describe the benefit of budgeting and its application;
• Prepare a master budget;
• Prepare a flexible budget;
• Compute and interpret variances;
• Apply relevant costing to different decisions;
• Explain the methods of pricing;
• Explain the costs and benefits of decentralization.

Course Content: 

1. Cost-Volume-Profit Relationships
2. The Master Budget
3. Flexible Budgets and Standards
4. Measuring Mix and Yield Variances
5. Decision-Making and Relevant Information
6. Pricing Decisions and Cost Management
7. Decentralization and Transfer Pricing

Text Book:

• Horngren, Foster, &Datar. Cost Accounting: A Managerial Emphasis. 9th Ed. 1997
• Horngren, Sunden& Stratton. Introduction to Management Accounting. 11th Ed. 1999

Reference Books

• C.T Homgren, Introduction to Management Accounting 4th to 8 th editions, 1999 USA
• C.T.  Homgren, Cost Accounting: A Managerial Emphasis 5th to 8th ecitionsprentice Hall Inc. 1982 to 1994