Kathmandu University School of Management

Course Syllabus

Course Title ACCOUNTING FOR MANAGERS

Course Code Number ACC 510
Credit Hours Four (4)
Course Objective
Main objective The course is designed to develop the knowledge of accounting required for
understanding and analyzing financial statements and using these information in
managerial planning, control and decision making.
Enabling objectives After completion of all the learning units and the requirements of the course,
participants will be able to:
- Describe and use basic accounting concepts and principles;
- Explain accounting terminologies, accounting equations and their relationship
with balance sheet;
- Record financial information and analyze them for managerial need;
- Use management accounting principles, objectives and functions;
- Explain the concept of costs and classify them for management application;
and
- Apply management accounting tools for managerial planning, control and
decision making.
Learning Unit
Learning Unit One 1. Basic Fundamentals of Financial Accounting.
Net contact hours - 1.1 Basic accounting concepts and principles.
4 hrs 1.2 Recording concept and system.
1.3 Basic accounting terminologies.
1.4 Components of balance sheet and income statement.
Learning Unit Two 2. Preparation of Balance Sheet and Income Statement.
Net contact hours - 2.1 Preparation of income statement
8 hrs 2.2 Presentation of balance sheet (with knowledge of sources of capital : owners
equity, borrowed capital and liabilities).
2.3 Recording of short term assets (cash, accounts receivable, inventories, short term
investment, long lived assets)
2.4 Non-monetary assets.
Learning Unit Three 3. Analyses of Financial Statements.
Net contact hours - 3.1 Preparation of cash flow statement (direct and indirect method)
8 hrs 3.2 Use of information for ratio analysis (vertical and horizontal analysis)
Learning Unit Four 4. Management Accounting Concept
Net contact hours - 4.1 Meaning and objective of managerial accounting
5 hrs 4.2 Controllership function and management accountant
4.3 Cost concept and cost classifications
Learning Unit Five 5. Measurement of Income in Different Inventory Valuation Principles and
Net contact hours - Methods.
6 hrs 5.1 Principles of variable and absorption costing
5.2 Multiple step income statement.
Learning Unit Six 6. Concept of Profit Planning
Net contact hour – 7 6.1 Cost volume relationship
hrs 6.2 Cost volume relationship for profit planning
6.3 Profit planning under constraint
Learning Unit Seven 7. Short-term Strategic Planning and Control
– Net contact hour – 7.1 Budgeting as a tool of strategic planning
12 hrs 7.2 Standard costing as a management tool for cost control

Syllabus- Financial Accounting 1 of 2

Learning Unit Eight 8. Differential Cost Analysis and Alternative Choices
Net contact hours – 8.1 Make or buy decision
10 hrs 8.2 Accept or reject decision
8.3 Drop or continue decision
8.4 Replacement decision
8.5 Evaluation of reprocessing a by-product decision.
Total contact hours: 60 hrs (including assessment and final examination)
Basic Text Managerial Accounting (Tenth edition) by
Ray H. Garrison and Eric N. Noreen.
(International Edition) Tata McGraw – Hill Irwin.
Other References Financial Accounting (Fourth edition) by Jerry J Weygant, Donald E. Keiso, Paul D.
Kimmel
International Financial reporting Standards (IFRS)
Accounting Principles (sixth edition) by Robert N Anthony, James S Reece

Course delivery Necessary conceptual and methodological inputs will be provided through the use of
methods and other interactive lectures. Simple example will be used to illustrate relevant issues. This will
requirements be followed by more comprehensive problems. The students will be required to work
out in groups and also individually. Articles on relevant topics will be provided from
time to time.
Application of the classroom learning is expected to culminate into a group project.
Students are assigned a group project on analyzing the annual report of a real life listed
company and also to appreciate difficulties faced by these companies in adopting
management accounting tools.
• Analysis of various items of financial statements and comparative analysis
with a similar company
• Compliance with Disclosure requirement: Identifying areas of departure from
GAAP
Critical evaluation of application of managerial accounting tools

Note: It is assumed that the participants of the course are already familiar with the basics of financial
accounting (i.e. up to the trial balance)

Syllabus- Financial Accounting 2 of 2