BS-Commerce-VI

ABDUL WALI KHAN UNIVERSITY MARDAN

Department of Management Sciences

Discipline: BS (COMMERCE)

Credit hours: 03

Course code:

Course Name: MANAGERIAL ACCOUNTING

Weeks Course outline- Managerial Accounting

Week-01 Managerial Accounting; Definition, Financial Accounting, Cost Behavior; Services
Firm, Manufacturing Firms, Product Life Cycle and diversity.
Week-02 Direct costing vs Indirect costing: Definition of Direct Costing, Defining Indirect
costing, Illustrations, Exercises.
Week-03 Direct Costing vs Absorption costing: Definition, Uses, advantages, Exercises.
Week-04 Direct Costing: Exercises, Indirect Costing :Exercises.
Week-05 Cost-Volume Profit Analysis/Break-even Analysis; Meaning of Cost-Volume profit,
exercises
Week-06 Break-even Analysis: Meaning of Break-even analysis: Exercises
Week-07 Contribution Margin: Definition, Formulae, Exercises, Safety Margin; Definition &
Exercises.
Week-08 Decision making and Optimal Mix of Products: Relevant and Irrelevant Costs, Make
or buy decisions, Exercises.
Week-09 Responsibility Centers, Performance Reports, Cost allocation .
Week-10 Budgeting; Definition, Different types of budgets, Sales budget, Cash budget, Direct
Materials costing budget.
Week-11 Budgeting; Direct labor Costing budget, Factory Overhead costing budget, Flexible
budget
Week-12 Flexible Budgeting : Exercises
Week-13 Standard Costing and Variance Analysis; What is standard costing, comparison with
actual costing, Variance analysis, types of production capacities,
Week-14 Variance Analysis: Material price and usage variances, Labor rate and efficiency
variances, Variable factory overhead expenditure, Efficiency variances, Fixed
overhead budget and volume variances.
Week-15 Performance management and Transfer Pricing; Meaning and techniques of
Performance Analysis/Measurement and Management, use of Contribution Margin,
ROI .
Week-16 Transfer pricing, general transfer-pricing rule Transfer pricing based on the external
market price, Negotiated transfer price, cost based transfer prices, standard vs actual
costs.
BS-Commerce-VI

Recommended Books:
1. Cost and Management Accounting by Collin Drury - Latest Edition
2. Cost and Management Accounting by Matz & Usury - Latest Edition
3. Garrison H. Ray, Noreen W. Eric., Latest Edition, Managerial Accounting Irwin publishers

Reference Books:
1. Introduction to Management Accounting, Horngen Charles T; Prentice Hall Inc. Latest Edition
2. Managerial Accounting; Q. Compel & Ronald M. Dascher, Paul E John Wiley & Sons Latest
Edition
3. Hilton W. Ronald Managerial Accounting, Latest Edition, McGraw-Hill Irwin