MANAGERIAL ACCOUNTING

Spring Semester Year I

Sonia Garg, Fellow, MBA, B.Tech.
Instructor: Sonia Garg
Telephone: 9872790238

Room no.: 202

Email: sonia.garg@thapar.edu

Textbook (TB): Charles T. Horngren, Srikant M. Datar and Madhav T. Rajan, Cost
Accounting A managerial emphasis, Pearson Education (2012), 14th Ed.
Reference Book for Exercises and Cases (RB): Anthony, A., Hawkins, D., and Merchant,
K.A., Accounting: Text and Cases, Tata McGraw Hill (2013), 13th Ed.
(More than 50 copies of this book are available in the library, do not come up with any
kind of excuse of not having the book)
COURSE OVERVIEW
The course aims to equip the students with cost accounting tools for better decisionmaking. It emphasizes the use of cost accounting information for internal planning
and control purposes. The central focus of the course is how cost accounting helps
managers make better decisions by recognizing cost accounting as a tool for business
strategy and implementation.
The course includes coverage of different costing methodologies like job costing,
process costing and activity-based costing. It equips students with tools like CVP
analysis, absorption costing and budgeting which help obtain information on planning
and control. Variance Analysis also covered in the course will help in measurement of
performance evaluation. The course finally wraps up with various strategic managerial
decisions like make-buy decision, shutdown-continue decision, replacement decision,
key or limiting factor, selection of profitable sales-mix, optimum level of activity and
pricing decisions.

COURSE OBJECTIVES
The course has multiple objectives that include the following:
a. To understand various costing methodologies for product costing.
b. To equip students with tools like CVP analysis and Budgeting for planning and
control of costs.
c. To evaluate actual performance as compared to budgeted performance using
variance analysis.
d. To use costing information for making strategic managerial decisions.
1

LEARNING OUTCOMES
By the end of the course, you should be able to:
1. Calculate the costs for products, services and other cost objects
2. Obtain information on planning and control of various costs
3. Measure performance evaluation of various costs
4. Analyze the relevant costing information for making strategic decisions
Achieving the Objectives
You will be required to complete several activities in order to achieve the identified
objectives:
1. Contribute to in-class discussions of chapters, cases, assignments and exercises
2. Submit all individual and group assignments in time
3. Attend all sessions to fully make use of and participate in classroom discussions
(All personal and professional emergencies requiring one to be absent from
class should be within the prescribed attendance rules of the university. No
shortage of attendance will be entertained.)
Overview of Assignments
For both group and individual assignments, the instructor will note down the group
compositions in the very first session. Each group should have a maximum of 6
students and a minimum of 5 students, which will lead to about 7-8 groups for each
section. Students are expected to show teamwork and not be free riders in the group
assignments.
Assignment 1: Individual Assignments
Following is the list of six assignments, which are a combination of cases and
assignments from RB and TB. These assignments have to be submitted in the assigned
session on A4 size sheets in the students own handwriting.
1. Assignment 1
Topic: Cost-Volume-Profit Analysis
Questions: 3-41 and 3-42 on Page 105-106 of the TB, 16-2 on Page 480 of the RB
Case 16-1 Hospital Supply, Inc.; Page 481 of the RB
2. Assignment 2
Topic: Activity-based Costing Analysis
Questions: 5-37 and 5-40 on Page 202 and 204 of the TB, 18-2 on Page 550 of the RB
Case 18-2 California Creamery, Inc. on Page 557 of the RB
3. Assignment 3

Topic: Budgeting
Questions: 7-31 and 7-34 on Page 293 of the TB, 24-1, 24-2 and 24-3 on Page 731-3 of
the RB
4. Assignment 4
Topic: Variance Analysis (1)
Questions: 7-37 and 7-38 on Page 294 of the TB, 20-1 on Page 619 of the RB
Case 20-1 Sun Air Boat Builders, Inc. on Page 621 of the RB
5. Assignment 5
Topic: Variance Analysis (2)
Questions: 7-39 and 7-41 on Page 295 of the TB, 21-4 on Page 644 of the RB
Case 21-2 Darius Company on Page 647 of the RB
6. Assignment 6
Topic: Relevant Costing
Questions: 11-34 and 11-36 on Page 489-90 of the TB, 26-4 on Page 831 of the RB
Case 26-1 Import Distributors, Inc. on Page 833 of the RB

In total there are six assignments. Each student from each group will be assigned one
assignment of the six assignments (questions and case from the text book and the
reference book) as per lots in the first session. Thus each student makes in total one
assignment for this course for which he/she will be evaluated individually for the
Individual Assignment component and evaluated as a group for the group assignment
component.

Assignment 2: Group Assignment

Each group will be assigned a group assignment (a case from the reference book) as
per lots in the first session, which they have to together present in the assigned
session and submit a hard copy of the solution to the case on the same day. If the
group fails to do so, they will be awarded a zero in this component of assessment.
Following is the list of cases for the group presentations.
1.
2.
3.
4.
5.
6.
7.
8.

Case
Case
Case
Case
Case
Case
Case
Case

16-3:
18-3:
19-4:
24-1:
20-4:
21-3:
26-2:
27-1:

Bill French; Page 486 of the RB

Safety Monitoring Devices, Inc.; Page 559 of RB
Ladau Company: Page 601 of RB
Body Glove: Page 733 of RB
Lupton Company: Page 625 0f RB
Campar Industries, Inc.: Page 645 of RB
Forner Carpet Company: Page 833 of RB
Sinclair Company: Page 862 of RB

Assignment 3: Quizzes & Examinations

Quiz 1
Mid-Term Exam
Quiz 3
End Term Exam

Syllabus
Session 1-7
Session 1-12
Session 13-17
Session 1-24

Date
Session 10
29 February 6 March 2016
Session 20
30 April 8 May 2016

Evaluation Scheme: The following evaluation scheme will be followed for grading the
performance of the students in the course
Assignment 1
Assignment 2

Assignment 3

Individual Assignments
Given Assignment
Class Participation
Group Assignments
Given Case
Group marks for Individual Assignments
Group Presentation
Quizzes & Examinations
Quizzes
Mid-Term Exam
End-Term Exam

Session
Plan
Session 1

Course Content

Session 2

Cost-Volume-Profit Analysis (I)

Chapters 3 (TB)
Pedagogy: Lecture and Discussion

Session 3

Cost-Volume-Profit Analysis (II)

Chapters 3 (TB)
Case Bill French
Pedagogy: Case Discussion and Analysis

Session 4

Job Costing
Chapters 4 (TB)
Pedagogy: Lecture and Discussion

Session 5

Process Costing
Chapters 17 (TB)

Introduction to Management Accounting

Chapters 1 and 2 (TB)
Pedagogy: Lecture and Discussion

8%
2%
8%
2%
5%
15%
20%
40%

Pedagogy: Lecture and Discussion

Submission: ASSIGNMENT 1
Session 6

Activity-based Costing and Activity-based Management (I)

Chapters 5 (TB)
Pedagogy: Lecture and Discussion

Session 7

Activity-based Costing and Activity-based Management (II)

Chapters 5 (TB)
Case Safety Monitoring Devices, Inc.
Pedagogy: Case Discussion and Analysis

Session 8

Variable and Absorption Costing (I)

Chapter 9 (TB)
Pedagogy: Lecture and Discussion

Session 9

Variable and Absorption Costing (II)

Chapter 9 (TB)
Case Ladau Company
Pedagogy: Case Discussion and Analysis
Submission: ASSIGNMENT 2

Session 10

QUIZ 1

Session 11

Budgeting (I)
Chapter 6 (TB)
Pedagogy: Lecture and Discussion

Session 12

Budgeting (II)
Chapter 6 (TB)
Case 24-1: Body Glove
Pedagogy: Case Discussion and Analysis

Session 13

MID TERM
Variance Analysis (I): Material Variances
Chapter 7 (TB)
Pedagogy: Lecture and Discussion

Session 14

Variance Analysis (II): Labour Variances

Chapter 7 (TB)
Pedagogy: Lecture and Discussion
Submission: ASSIGNMENT 3

Session 15

Variance Analysis (III): Overhead, Sales and Profit Variances

Chapter 8, 14 (TB)

Pedagogy: Lecture and Discussion

Session 16

Variance Analysis (IV)

Chapter 7, 8, 14 (TB)
Case Lupton Company
Pedagogy: Case Discussion and Analysis
Submission: ASSIGNMENT 4

Session 17

Variance Analysis (V)

Chapter 7,8, 14 (TB)
Case Campar Industries, Inc.
Pedagogy: Case Discussion and Analysis

Session 18

Decisions Making and Relevant Information (I)

Chapter 11 (TB)
Pedagogy: Lecture and Discussion

Session 19

Decisions Making and Relevant Information (II)

Chapter 11 (TB)
Pedagogy: Lecture and Discussion
Submission: ASSIGNMENT 5

Session 20

QUIZ 2

Session 21

Decisions Making and Relevant Information (III)

Chapter 11 (TB)
Case Forner Carpet Company
Pedagogy: Case Discussion and Analysis

Session 22

Decisions Making and Relevant Information (IV)

Chapter 11 (TB)
Case Sinclair Company
Pedagogy: Case Discussion and Analysis

Session 23

Pricing Decisions
Chapter 12 (TB)
Pedagogy: Lecture and Discussion
Submission: ASSIGNMENT 6

Session 24

Course Review and Feedback