ST PAUL’S UNIVERSITY

BACHELORS OF BUSINESS ADMINISTRATION- BBA

MANAGEMENT ACCOUNTING - BAC 201

3 Credit Hours

Lecturer; Stephen Ndung’u

Cell phone; 0720 451 847

Email; sndungu@spu.ac.ke

General Objective:

The purpose of this course is to introduce the students to the management’s use of accounting information for
purposes of planning and control of an organization’s business activities. The course is intended to equip the
students with fundamental accounting techniques of planning and control as used in a business’s/organization’s
accounting practices.

Expected Learning Outcomes:

By the end of the course, the student should be able to:

1. Analyse the concept of cost through cost estimation and its management in terms of volume and profit
2. Evaluate advanced costing techniques in addition to traditional costing methods
3. Describe and explain costs for short-term decision making
4. Compare and contrast fixed vs flexible budgets-together with the budgetary planning process
5. Discuss the concept of standard cost and Variance Analysis as a performance measurement tool

Weeks Topics Content

Week 1 THE NATURE AND PURPOSE  Introduction to management accounting

OF MANAGEMENT  Accounting as an information system
ACCOUNTING  Management use of accounting
information
 Differences between Financial
accounting and Management Accounting
Week 2 COST BEHAVIOUR &  Cost behavior
ESTIMATION  Objective of cost estimation
 Cost estimation methods
Week 3 COST – VOLUME PROFIT  Introduction to CVP
ANALYSIS AND PROFIT  Break – even analysis
PLANNING  Sensitivity Analysis
 Profit planning
Week 4 CAT 1
 Weeks Topics Content

Week 5 Production COSTING systems  Absorption costing

 Marginal costing
 Reconciliation
Week 6 Advanced Costing Techniques  Activity based costing
 Target costing
 Throughput costing
 Life cycle costing
Week 7 CAT 11

Week 8 DECISION – MAKING  Relevant costs/

&9  Make or buy decisions
 Sell or process
 Add or drop product line
 Special orders
 Utilization of scarce resources
Week Budgeting  Introduction & Objectives
10  Fixed & Flexible budgets
Week VARIANCE ANALYSIS  standard costs
11 & 12  Variance analysis
 Investigating variances.
Week Revision & exams
13

Recommended Readings:

1. Drury C: Management and Cost Accounting, Book power Publishing, current Edition
2. Horngren C.T and Foster, C; Cost Accounting – A Managerial Emphasis, 8th Edition
3. Horngren, C.T and Sunder G. L: Introduction to Management Accounting, Prentice- Hall, 7th Edition.