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MADM Course Outline 2020 - 21 - v2

This document outlines a course on Management Accounting for Decision Making. The course is intended to help students understand different approaches to managing costs and creating value to enhance business performance, with a focus on the banking and financial services sector. Over the course, students will learn to distinguish between various cost types, apply relevant and incremental cost analysis to managerial decision making, analyze cost behavior and prepare budgets. Assessment will include assignments, quizzes, class participation, and an end-term exam. The course will use lectures, problems, and case discussions to teach these concepts.

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111 views

MADM Course Outline 2020 - 21 - v2

This document outlines a course on Management Accounting for Decision Making. The course is intended to help students understand different approaches to managing costs and creating value to enhance business performance, with a focus on the banking and financial services sector. Over the course, students will learn to distinguish between various cost types, apply relevant and incremental cost analysis to managerial decision making, analyze cost behavior and prepare budgets. Assessment will include assignments, quizzes, class participation, and an end-term exam. The course will use lectures, problems, and case discussions to teach these concepts.

Uploaded by

Karan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Course Outline: Management Accounting for Decision Making

Credit: 1.5 , Core Course


Area: Finance

Program: PGDM-B&FS
Term II Academic Year 2020-21
_______________________________________________________________________
Instructor(s) Name Rupish Saldi
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Email [email protected] Click or tap here to
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Phone (Extn no.) Click or tap here to Click or tap here to
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Meeting Hours With Prior Click or tap here to
Appointment enter text.
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1. COURSE DESCRIPTION
Business environment has changed dramatically in the past few decades. Companies of all sizes
have to compete now in the dynamic environment through technologies. Organisations face a
challenging environment in terms of slowdown of growth, increasing costs and volatility in input
costs, emergence of new competitors with fundamentally different cost positions, and customers’
increasing value consciousness. All of these changes are exerting pressures on organizations’
margins. Effective Cost Management enhances the competitiveness of the organisation and
makes it leaner and more flexible. Organisations need to launch cost reduction initiatives with
the potential to derive long-term sustainable benefits of cost savings and value creation. This
course introduces different ways of deciding about managing cost and creating value with the
aim of enhancing business performance.

2. COURSE OUTCOMES (COs)

After going through the course, the students would be able to:

Course Outcome 1 (CO1): To explain and distinguish between various types of costs.

Course Outcome 2 (CO2): Identify the difference between relevant and irrelevant cost and its
application in managerial decision making using incremental analysis especially with focus
on BFSI sector.
Course Outcome 3 (CO3): Analyze cost behavior and its application in preparation of various
types of budgets and in profit planning.  
Course Outcome 4 (CO4): Demonstrate the ability to calculate the cost of various products
and services with special reference to BFSI. 

3. MAPPING OF THE PROGRAM OUTCOMES (POs) AND COURSE OUTCOME (COs)

Course Outcomes (COs)

Program Outcomes (POs) CO CO CO CO


1 2 3 4

PO1: Student should be able to write well organized and grammatically


correct business reports and letters.

PO2: Student should be able to make effective oral presentations.

PO3: Student should be able to demonstrate critical thinking skills by 2 3 2 3


understanding the issues with a strong focus on banking and financial
services, evaluating alternatives on the basis of multiple perspectives and
presenting a solution including conclusions and implications

PO4: Student should be to demonstrate problem solving skills by 3 2 3


understanding and defining the problem related particularly to banking
and financial services, analyzing it and solving it by applying appropriate
theories, tools and techniques.

PO5: Student should be able to illustrate the role of responsible


leadership in management.

PO6: Student should be able to identify social concerns and ethical


issues in management.

PO7: Students should be able to identify challenges faced by banks and


financial institutions in the global business environment.

PO8: Student should be able to take decisions in the global business


environment with special focus on banking and financial institutions.

4. PEDAGOGY

The pedagogy for this course will be a judicious mix of lectures, numerical problems, case
discussions and analysis. Active participation by students is an important feature of the course.
To apply the learning during this course, the student will be doing a group project as well.
5. COURSE EVALUATION COMPONENTS (CECs)

Practical exercises-based assignment/case study analysis/Project (35%): For effective


learning, it is extremely important to have interactive classes especially when participants have
work experience. Interaction is possible when you come prepared for classes in terms of going
through the reading material, solving the home assignments and preparing the case studies. I
expect you to be well prepared for the classes to achieve this objective.

Quizzes (20%): The quizzes will be based on the course covered in the previous classes.
Therefore, keeping pace with the course covered will be important. The request for a makeup
quiz will not be entertained.

End-term Examination (40%): End term exam will include all the topics of the course. The
exam will assess subject understanding through application of concepts to analyze real life
business situations.

Class Participation (5%): Class participation will be assessed basis the participation of the
student in various class discussions and overall understanding of concept.

6. MAPPING BETWEEN COs, POs and CECs

Course Evaluation Components (CECs)


COs POs Quiz Project Class End Term
Participation
CO1 PO3 ✓
CO2 PO3 ✓ ✓
PO4
CO3 PO3 ✓
PO4
CO4 PO3 ✓ ✓
PO4

7. RESOURCES

7.1 Textbook

 Sawyers, Roby B., Steven R. Jackson, J. Gregory Jenkins, and Ravinder K. Arora (2014),
Managerial ACCT, 2nd edition, Cengage Learning India.
7.2 Reference Books

 Horngren, Charles T., Srikant M. Datar, George Foster, Mdhav V. Rajan, Christopher Ittner
(2009), Cost Accounting – A Managerial Perspective, 13th ed., Pearson.
 Drury, Colin, (2004) Management and Cost Accounting, 6th ed., Thomson Learning.
 Noreen, Eric W., Peter C. Brewer, Ray H. Garrison (2011), Managerial Accounting for
Managers, Tata McGraw Hill.
 Bhattacharya, Asish K. (2008), Cost Accounting for Business Managers, 1st ed., Elsevier.

8. SESSION PLAN

Session(s) Topic Readings

1 Introduction to Cost Accounting and Management Chapter 1


Accounting

 Informational need of management


 Interface between Financial, Cost and Managerial
Accounting
2 Product Costing Chapter 5
 The Production processes
Numerical Exercises
 Product cost in a manufacturing company
 Cost flows in manufacturing company
 Merchandising company and cost of products
 Service companies like Banking & Financial Service
(BFS) and cost of services
 Product cost and period cost

3-5 Understanding Cost Behavior and Cost-Volume-Profit Chapter 6


Analysis
Chapter 9
 Fixed, variable costs and mixed costs
 Impact of income taxes on cost and decision making Numerical Exercises
 Absorption costing and variable costing
 Variable costing and decision making Concept Note:
 Contribution margin and its uses The Behavior of Costs
 What-if decisions using CVP
 Breakeven analysis
 Target profit analysis
 Margin of safety
Cost structure and operating leverage

6-7 Relevant Costs and Product Planning Decisions Chapter 13


 Nature of managerial decision making
Numerical Exercises
 Characteristics of costs for decision making
 Decisions to accept special orders
 Decision to outsource and make or buy
 Decisions to drop a product line or a service
 Decisions for resource utilization
 Decisions to sell or process further

8 Relevant Costs and Product Planning Decisions


Case Study: To trim or not to trim: That is the question

9-10 Elements of management planning and control system Chapter 10


 Budgeting as a tool of management planning and
Numerical Exercises
control
 Budget development process
 Sales budget
 Production budget
 Expense budget
 Cash budget
 Budgeted financial statements
 Budgets for merchandising companies and service
companies like BFS
 Static versus flexible budget

9. ACADEMIC INTEGRITY & CLASS RULES

a) Plagiarism is the use of or presentation of ideas, works that are not one’s own and which are not
common knowledge, without granting credit to the originator. Plagiarism is unacceptable in IMI
and will invite penalty. Type and extent of penalty will be at the discretion of the concerned
faculty.

b) Cheating means using written, verbal or electronic sources of aid during an examination/ quiz/
assignment or providing such assistance to other students (except in cases where it is expressly
permitted by the faculty). It also includes providing false data or references/list of sources which
either do not exist or have not been used, having another individual write your paper or
assignment or purchasing a paper for one’s own submission. Cheating is strictly prohibited at IMI
and will invite penalty as per policies of the Institute .

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