HARAMAYA UNIVERSITY

COLLAGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF ACCOUNTING AND FINANCE
Module M9. Cost and Management Accounting
Number/Title
Total ETCTS ETCTS: 10
and Credit Credit Hours: 6
Hours of the
module
Courses of the Module
Course Course Name Cr. Hr CP/ETCTS
Number
AcFn. 3141 Cost and Management Accounting I 3 5
AcFn 3142 Cost and Management Accounting II 3 5
Course Information
Course Number AcFn3142
Course Title Cost and Management Accounting II
Degree Program BA Degree in Accounting and Finance
Module
Module
Coordinator
Lecturer Mr. Mohammed A.
ETCTS Credits 5
Contact Hours 3
(per week)
Course Objectives This course builds on the knowledge acquired from the course “Cost
& Competences to and Management Accounting- I”, which was studied in the previous
be Acquired semester. It introduces some new concepts and the use of
Accounting tools and techniques in the analysis, planning and
control of business operations and in Management decision making
processes. Topics to be covered in this course are CVP analysis,
Master budgets and Flexible budgets, Pricing decisions, Standard
costing , variance analysis etc. The central focus of this course is to
help key managers/other decision makers to make better decisions by
using different managerial tools in their business strategies. Thus,
this course enables the students to apply in actual practice these
managerial tools, in a real world business environment after their
graduation
WEEKS Course Contents Reading
2WEEK Chapter-One: COST-VOLUME-PROFIT
{1ST&2ND ANALYSIS
 Cost-volume –profit assumptions and terminology
 Essentials of CVP analysis
 The breakeven point
 Using CVP analysis for making decisions
 Sensitivity analysis and uncertainty
 Cost planning and CVP
 Effect of sales mix on income

1 WEEK Chapter-Two: MASTER BUDGETS AND

{3RD } RESPONSIBILITY ACCOUNTING
 Budgets and the budget cycles
 Advantages of budgets
 Types of budgets
 Steps in developing operating budgets
 Budgets and responsibility accounting
 Responsibility and controllability

4WEEKS
{4TH ,5TH ,6TH&7TH } Chapter-Three:
FLEXIBLE BUDGETS AND VARIANCE
ANALYSIS
 Static budget and variance
 Flexible budget and Variance
 Efficiency variance and price variance for input

2WEEKS Chapter-Four
{11TH&12TH } STANDARD COSTING AND VARIANCE
ANALYSIS
 Material variance
 Labor Variance
 Overhead Variance
 Net manufacturing variance
 Sales Variance

2WEEKS Chapter-five
{13TH&14TH } RELEVANT PRICING AND THE DECISION-
MAKING
 The concept of relevance
 Special order
 Sell or process further
 Deletion or addition of product, service or
department
 Make or Buy decision
 Product mix under capacity constraint
  Pricing decision

Teaching & The teaching and learning methodology include lecturing, discussions,
Learning problem solving, and analysis. Take-home assignment will be given at the
Methods/strategy end of each chapter for submission within a week. Solution to the
assignments will be given once assignments are collected. Cases with local
relevance will also be given for each chapter for group of students to present
in a class room. Practical application of cost accounting in Ethiopian
manufacturing firms (to be done by students in the form of term paper). The
full and active participation of students is highly encouraged.
Assessment/ The evaluation scheme will be as follows:
Evaluation
Test Test Test Quiz1 Assignmen Final Total
1 2 3 t1
10% 10% 10% 10% 10% 50% 100%

Work load in hours Hours Required

Tot
Self- ECT
al
Lecture La Assessme Tutori Studi Assignm Advisi S
Hrs
s b nts als es ent ng
48 - 10 12 55 - - 135 5

Roles of the He/she will come to the class regularly on time and deliver the lecture in a
Instructor well-organized manner. Besides, at the end of each class he/she gives
reading assignment for the next class. He/she will make sure that proper
assessments is given. He/she is also responsible to give feedback for each
assessment.
Roles of the The success of this course depends on the students’ individual and collective
students contribution to the class discussions. Students are expected to participate
voluntarily, or will be called upon, to contribute to set exercises and
problems. Students are also expected to read the assigned readings and
prepare the cases before each class so that they could contribute effectively
to class discussions. Students must attempt assignments by their own.
Proficiency in this course comes from individual knowledge and
understanding. Copying the works of others is considered as serious offence
and leads to disciplinary actions.
Text and reference Text Book:
books  Horngren, Foster, &Datar. Cost Accounting: A Managerial Emphasis.
9th Ed. 1997
 Horngren, Sunden& Stratton. Introduction to Management
Accounting. 11th Ed. 1999

Reference Books
 C.T Homgren, Introduction to Management Accounting 4th to 8 th
 editions, 1999 USA
 C.T. Homgren, Cost Accounting: A Managerial Emphasis 5th to 8th
ecitionsprentice Hall Inc. 1982 to 1994
 Homgren, foster, &Datar, Cost Accounting A Managerial Emphasis. 10
thEcition
 L.E. Heitger Managerial Accounting 1th and 2 nd editions, McGraw
Hill , 1998, India
 GetuJemaneh, Management Accounting 1996.
 Ray H.Garrison, Managerial Accounting. 6th edition
 Caluinengler, Managerial Accounting 2nd edition
 L. Gayle Rayburn Principles of cost Accounting using a cost
Mangement Approach 4th edition Richard DIR WIN Inc. 1989.
 Robert X. Kaplan Advanced Management Accounting 1st and 2nd
edition prentice Haill, Inc, 1982 and 1989 (Chapters 2, 11,12, and 13
only)