Lovely Professional University,Punjab

Format For Instruction Plan [for Courses with Lectures and Tutorials ]

Course No. MGT515 Course Title: ACCOUNTING FOR MANAGERS L: 4 T: 1 P: 0 Cr: 5

Course Planner :- 11790 :: Gagandeep Bhatara

TextBook

1. Belvered E Needles, Accounting for Decision Making, Cengage Learning, New Delhi, 2010

Other Specific Books

2. Pandey I.M., Management Accounting, Vikas Publishing House Pvt. Ltd
3. Shah Paresh, Management Accounting, Oxford University Press, 2009.
4. Horngren, Sundem & Stratton, Introduction to Management Accounting, Prentice Hall India, 2007.
5. Tulsian PC, Financial Accounting, Pearsons Publication, New Delhi, 2008.

Other Readings

Sr. No. Jouranls atricles as compulsary readings (specific articles, Complete reference)

6 A Financial Analysis Case Of Amazon.Com And Barnes & Noble With Emphasis On The Impact Of ROE V/s EPS, Timothy,Judith & loren,Journal of Business
Case Studies, May/Jun 2010.Vol.6, Iss.3; pg. 21, 12pgs
7 "What Every Ratio User Should Know About Assets", Dianna Ross. Commercial Lending Review. Riverwoods:Sep/Oct 2005. Vol.20, Iss. 5; pg.19, 8 pgs,
http://proquest.umi.com/pqdweb?did=908251551&sid=3&Fmt
8 "Analysing company accounts", Hussey, Roger, Hussey, Jill. Credit Control.Hutton: 1997. Vol.18, Iss.2; pg.11, 10 pgs,
http://proquest.umi.com/pqdweb?did=11192986&sid=4&Fmt=4&clientId=129893&RQT=309&V
9 THE DU PONT MODEL: EVALUATING ALTERNATIVE STRATEGIES IN THE RETAIL INDUSTRY, Philip L Little, Beverly L Little, David Coffee.Academy of
Strategic Management Journal. Cullowhee:2009. Vol.8 pg.71,10 pgs
10 "Missouri Solvents: Managing Cash Flow", David A Kunz, Rebecca Summary. Journal of the International Academy for Case Studies.Cullowhee: 2010. Vol. 16,
Iss.4; pg.43, 10 pgs
11 "Budgeting: Perspectives From The Real World", Karen Shastri, David E Stout. Management Accounting Quarterly. Montvale: Fall 2008. Vol. 10, Iss. 1; pg. 18, 8
pgs
12 Comparative study of Budgeting and Budgetary Control in Bangalore Based Public and Private Sector Units1, D S Prathima.Finance India. Delhi:Sep
2005.Vol.19,Iss.3;pg.1012,4 pgs, http://proquest.umi.com
13 Zero-Based Budgeting As A Planning And Budgeting Tool, Schulze, William C., Journal of Information Management; Spring 1988; 9, 1; ABI/INFORM Global pg.
1, http://proquest.umi.com/pqdweb?did=583872&sid

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 14 Standard Costing, Flexible Budgeting, And Variance Analysis For Nonprofits, Gerald Aranoff. Cost Management. Boston: May/Jun 2009. Vol. 23, Iss. 3; pg. 27, 5
pgs
15 Using Activity-Based Management for Cost Control, Leslie Kren. Journal of Performance Management. Atlanta: 2008. Vol. 21, Iss. 2; pg. 18, 11 pgs,
http://proquest.umi.com/pqdweb?did=1629981791&sid=16&F
16 The ALLTEL Pavilion Case: Strategy and CVP Analysis, Edward Blocher, Kung H Chen. Issues in Accounting Education. Sarasota: Nov 2004. Vol. 19, Iss. 4; pg.
555, 11 pgs, http://proquest.umi.com/pqdweb?d
17 Transfer Pricing in Indian Banks, Rajendra Singh Chikara. Finance India. Delhi: Dec 2003. Vol. 17, Iss. 4; pg. 1365, 24 pgs,
http://proquest.umi.com/pqdweb?did=579349271&sid=16&Fmt=4&clientId=129893&R
18 "Responsibility centers promote effective financial control", L Neal Freeman. Ophthalmology Times. Cleveland: Aug 15, 2004. Vol. 29, Iss. 16; pg. 72, 1 pgs

Relevant Websites

Sr. No. Web adress (only if relevant to the courses) Salient Features

19 http://www.accountingcoach.com/accountingterms/accounting-dictionary. Various accounting terms are available.

20 http://www.accountingformanagement.com/ Provides introduction to managerial accounting & all other managerial

accounting articles, concepts etc.
21 www.icai.org Contains articles & information of accounting standards including change
of financial statements from Indian GAAP to IFRS.
22 http://www.super-memory.com/sml/2003/522.htm Information regarding concepts of managerial accounting

23 http://proquest.umi.com/pqdweb Articles & cases related to the course

24 http://www.businessbookmall.com/Accounting%20Internet%20Library.htm Free study material available for the course

25 http://www.edcourses.net/Ebooks%20Backup/Accounting%2020090812/Wiley%20 Access to study guide of Accounting for management by Paul M. Collier

Accounting%20for%20Managers%20Interpreting%20Accounting%20Information
%20for%20Decision-Making.pdf

Detailed Plan For Lectures

Pedagogical tool
Chapters/Sections of
Homework to be Demonstration/case
Week No. Lecture No. Topic Textbook/other
Assigned to students study/images/anmation
reference
ctc. planned

Part 1
Week 1 Lecture 1 Basic Accounting Review: Accounting terms, Users of accounting ->Reference :1,Chapter-1 Pg-2 Case- CVS
information ->Reference :5,Chapter-1 Corporation/Ch 1/Ref.1
Pg-1.1
->Reference :19,

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Part 1
Week 1 Lecture 2 Accounting concepts and conventions ->Reference :5,Chapter- 2 Pg
2.1
->Reference :21,
Lecture 3 Accounting Equation ->Reference :1,Chapter-1 Practical Problems
Pg-17
->Reference :5,Chapter-5
Pg-5.1
Lecture 4 Financial Accounting, Cost Accounting, Management accounting & ->Reference :5,Chapter-1 Pg-
their interrelationships 1.13
->Reference :1,Chapter-1 Pg-
7
->Reference :22,

Week 2 Lecture 5 Understanding Corporate Financial statements- ->Reference :1,Chapter-1 Pg Use of Annual Report of
types, nature, 20 & Chapter 11 Pg 490 a company
->Reference :20,
Lecture 6 Financial Statements: Attributes, uses and limitations. ->Reference :1,Chapter-1 Pg
20 & Chapter 11 Pg 490
->Reference :5,Chapter-9 Pg
9.1
Lecture 7 Capital and Revenue expenditures and receipts. ->Reference :5,Chapter-9 Pg HomeWork 1 Allocation Examples
9.29
->Reference :20,
Lecture 8 Financial Statement Analysis - Concepts and objectives, Tools for ->Reference :1,Chapter- 23 Pg Term Paper 1 Allocation
analysis and interpretation of financial statement analysis. 1110
->Reference :20,

Week 3 Lecture 9 Common-size financial statements- Common size ->Reference :1,Chapter- 23 Pg Case analysis
profit & Loss Account 1114
->Reference :3,Part
4/Chapter-11
->Reference :1,Case
McDonald's- Chapter- 23 Pg
1147
Lecture 10 Common -size financial statements- Common Balance Sheet. ->Reference :1,Chapter- 23 Pg Case analysis
1115
->Reference :3,Part
4/Chapter-11
->Reference :1,Case
McDonald's- Chapter- 23 Pg
1147

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Part 1
Week 3 Lecture 11 Comparative statements- Profit & Loss Account ->Reference :2,Chapter-25 Pg
535
->Reference :3,Part
4/Chapter-11
->Reference :1,Case
McDonald's Chapter- 23 Pg
1147
Lecture 12 Comparative statements- Balance Sheet ->Reference :2,Chapter-25 Pg
535
->Reference :3,Part
4/Chapter-11
->Reference :1,Case
McDonald's- Chapter- 23 Pg
1147

Week 4 Lecture 13 Trend analysis. ->Reference :2,Chapter-25 Pg

536
->Reference :3,Part
4/Chapter-11
Part 2
Week 4 Lecture 14 Ratio analysis- Meaning, uses and types. ->Reference :2,Chapter 25 Pg Case Study- Reliance
518 Industries Ltd. Ref
->Reference :20, 2/Pg556
Lecture 15 Liquidity Ratios - Current ratio , Quick ratio & Cash ratio ->Reference :2,Chapter-25 Pg HomeWork 1 Case Study- Reliance
520 Submission Industries Ltd. Ref
2/Pg556
Lecture 16 Profitability Ratios- in relation to sales & in relation to investments ->Reference :1,Chapter- 23 Pg Case Study- Reliance
1117 Industries Ltd. Ref
->Reference :2,Chapter- 25 Pg 2/Pg556
528

Week 5 Lecture 17 Profitability Ratios- in relation to investments, Efficiency/ Activity ->Reference :1,Chapter- 23 Pg Case Study- Reliance
ratios 1117 Industries Ltd. Ref
->Reference :2,Chapter- 25 Pg 2/Pg556
524
Lecture 18 Efficiency/ Activity ratios ->Reference :1,Chapter- 23 Pg HomeWork 2 Allocation Case Study- Reliance
1117 Industries Ltd. Ref
->Reference :2,Chapter- 25 Pg 2/Pg556
524

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Part 2
Week 5 Lecture 19 Leverage ratios & Trading on Equity, Coverage ratios ->Reference :1,Chapter- 23 Pg Case Study- Reliance
1121 Industries Ltd. Ref
->Reference :2,Chapter- 25 Pg 2/Pg556
521
Lecture 20 Other Common ratios & Du Pont Framework ->Reference :1,Chapter 23 Pg Case Study- Reliance
1116 & 1123 Industries Ltd. Ref
->Reference :2,Chapter 25 Pg 2/Pg556
534
->Reference :9,Du Pont
Framework

Week 6 Lecture 21 Fund Flow Statement- Meaning, Uses, Statement ->Reference :2,Chapter- 24 Pg
of changes in working capital and fund flow 492
statement (Overview) ->Reference :22,
Lecture 22 Preparation and Analysis of Statement of changes in working capital. ->Reference :2,Chapter- 24 Pg
492
Lecture 23 Preparation of Fund Flow Statement- Finding out ->Reference :2,Chapter- 24 Pg
hidden information & ascertaining funds from operations 496
Lecture 24 Preparation & analysis of Fund Flow Statement. ->Reference :2,Chapter- 24 Pg Quiz 1 Case- Bharat Chemicals
496 Ltd pg 514
->Reference :2,Case- Bharat
Chemicals Ltd pg 514

Week 7 Lecture 25 Cash Flow Statement- introduction, three categories of cash flows/ ->Reference :1,Chapter-21 Pg Case analysis Ref 10
business activities 991
->Reference :10,Managing
Cash Flows
Lecture 26 Preparation of Cash Flow Statements- Reporting Cash Flow from ->Reference :1,Chapter-21 Pg HomeWork 2 Case analysis Ref 10
operations- Direct & Indirect Method 1001 Submission

Lecture 27 Preparation of Cash Flow Statement and Analysis. ->Reference :1,Chapter-21 Pg Case analysis Ref 10
1001
Lecture 28 Revision of Syllabus covered till MTE ->Reference :1,
->Reference :2,
->Reference :3,
->Reference :4,
->Reference :5,

MID-TERM
Part 3

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Part 3
Week 8 Lecture 29 Basic Cost terms and concepts ->Reference :1,Chapter-13 Pg
567
->Reference :3,Part 1/ Chapter
2
Lecture 30 Preparation of Cost Sheet ->Reference :3,Part 1/ Chapter Pratical Problems
2
Lecture 31 Use of cost data in managerial decision-making. ->Reference :1,Chapter-13 Pg HomeWork 3 Allocation
567
->Reference :3,Part 1/ Chapter
1&2
Lecture 32 Cost Control Techniques- Budgeting and Budgetary Control, ->Reference :1,Chapter-17 Pg Case of Frame craft
Budgetary Process 779 Comapny/ Ref1
->Reference :3,Part 4/ Chapter
12
->Reference :11,Budgeting
->Reference :20,

Week 9 Lecture 33 Preparation of Budgets: Master Budget, Operating Budgets-Sales ->Reference :1,Chapter-17 Pg Case of Frame craft
Budget, Production Budget. 787 Comapny/ Ref1
->Reference :3,Part 4/ Chapter
12
Lecture 34 Financial Budgets: Cash Budget ->Reference :1,Chapter-17 Pg Case of Frame craft
799 Comapny/ Ref1
->Reference :3,Part 4/ Chapter
12
Lecture 35 Preparation of Budgets: Fixed & Flexible Budget. ->Reference :3,Part 4/ Chapter
12
->Reference :3,Case- Gurudev
Ltd pg 484
Lecture 36 Zero Based Budgeting & Activity Based budgeting, Advantages & ->Reference :3,Part 4/ Chapter
limitations of Budgeting & Budgetory Control 12
->Reference :13,Zero Based
Budgeting

Week 10 Lecture 37 Marginal costing- Meaning, determination of marginal cost, its value ->Reference :3,Part 5/ Chapter HomeWork 3
& limitations 16 Submission
->Reference :20,
Lecture 38 Cost Volume Profit Analysis- Contribution, P/V Ratio, Break even ->Reference :3,Part 5/ Chapter Conceptual Cases Ref 3/
Point, Margin of safety 16 Pg 621
->Reference :16,
->Reference :20,

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Part 3
Week 10 Lecture 39 Break Even Analysis- Graphical presentation of CVP analysis, Uses & ->Reference :3,Part 5/ Chapter Case Cadila Corporation
limitations of CVP analysis 16 Ref 3/Pg 625
Part 4
Week 10 Lecture 40 Decision involving alternative choices: Incremental Analysis- ->Reference :1,Chapter-20 Pg HomeWork 4 Allocation Case Ref1- Box Company
Outsourcing & make or buy decisions 937
->Reference :3,Part 5/ Chapter
17

Week 11 Lecture 41 Incremental analysis for Special order Decisions & Segment ->Reference :1,Chapter-20 Pg Case Ref1- Home State
Profitability Decisions 947 Bank
->Reference :3,Part 5/ Chapter
17
Lecture 42 Incremental analysis for Sales Mix Decisions & Sell or Process further ->Reference :1,Chapter-20 Pg Case Ref1- Home State
decisions 951 Bank
->Reference :3,Part 5/ Chapter
17
Lecture 43 Pricing Decisions- Inroduction, factors affecting pricing decisions & ->Reference :3,Part 5/ Chapter
overveiw of different pricing methods. 18
Lecture 44 Pricing Decisions- Different pricing methods, Transfer Pricing ->Reference :3,Part 5/ Chapter Term Paper 1
18 Submission
->Reference :17,Transfer
Pricing

Week 12 Lecture 45 Activity based Systems ->Reference :1,Chapter 15 Pg Ref 15

681
->Reference :3,Part 5/ Chapter
19
->Reference :15,
->Reference :20,
Lecture 46 Standard costing- Meaning, Computing Standard Costs, advantages ->Reference :1,Chapter 19 Pg Ref 14
& limitations 885
->Reference :3,Part 4/ Chapter
13
->Reference :14,
->Reference :20,
Lecture 47 Variance analysis- Meaning, Computing & analysing Direct Material ->Reference :1,Chapter 19 Pg Quiz 2 Case- Priety Comapny,
Variances. 894 Ref 3/ Pg 531
->Reference :3,Part 4/ Chapter
13
->Reference :20,

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Part 4
Week 12 Lecture 48 Computing & analysing Direct Labour Variances ->Reference :1,Chapter 19 Pg Case- Trupti Comapny,
902 Ref 3/ Pg 532
->Reference :3,Part 4/ Chapter
13

Week 13 Lecture 49 Computing & analysing Overhead Variances ->Reference :1,Chapter 19 Pg HomeWork 4 Case- Indumati Comapny,
905 Submission Ref 3/ Pg 530
->Reference :3,Part 4/ Chapter
13
Lecture 50 Responsibility Accounting & Management Control systems ->Reference :3,Part 4/ Chapter
14
->Reference :18,
Lecture 51 Management Information Systems ->Reference :3,Part 4/ Chapter
14
Lecture 52 Revision of whole syllabus ->Reference :1,
->Reference :2,
->Reference :3,
->Reference :4,
->Reference :5,

Spill Over
Week 14 Lecture 53 Capacity Management ->Reference :3,Part 5 Chapter
20
Lecture 54 Contemporary Issues in Management Accounting ->Reference :3,Part 5 Chapter
21

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 Details of homework and case studies plan
Nature of homework
Homework No. Topic of the Homework (group/individuals/field work

Homework 1 Each student will be allocated a company and will submit a report on analysis of financial position Individual
of that company for the past three years by using comparative analysis, common size analysis and
trend analysis.

Homework 2 Each student will take annual report of a company and will analyse various ratios and components Individual
of its fund flow statement and will submit a report with suitable interpretation.

Homework 3 Practical problems on Preparation of Cost Sheet and Preparation of Operating & financial Budgets. Individual
Each student will submit a written report & test will be taken for the same in the tutorials.
Evaluation: Written report is of 5 marks & Test of 10 marks.

Homework 4 Practical problems on Preparation of Marginal Costing & CVP analysis and pricing decisions. Individual
Each student will submit a written report & test will be taken for the same in the tutorials.
Evaluation: Written report of 5 marks & Test of 10 marks.
*Normally all the homeworks shall be submitted online but in special courses where homeworks cannot be submited online , the insructor can edit the mode of submission while
entering the IP Details

Scheme for CA:out of 100*

Component Frequency Out of (If any) Marks for each Total Marks

Homework 3 4 15 45

Quiz 2 15 30

Term Paper 1 25 25

Total :- 100

* In ENG courses wherever the total exceeds 100, consider x best out of y components of CA, as explained in teacher's guide available on the UMS

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 List of suggested topics for term paper[at least 15] (Student to spend about 15 hrs on any one specified term paper)
Sr. No. Topic
1 An analysis of management accounting and its role in the changing realm of modern business.
2 Critically analyse the role of Accounting in the Satyam Fiasco and illustrate the various developments &
amendments made by the regulators to address these issues in the future.
3 Discuss the financial and managerial accounting standards & practices and explain how the information being
formulated is for a managerial purpose.
4 Examine the pros and cons of two specific cost accounting systems: Traditional cost accounting (TCA) and
activity based costing (ABC).
5 Analyse and examine the Activity-Based Costing in the service industry and discusses how the service
industry uses ABC to improve profits and competitiveness.
6 Future Accounting Practices: A review of the changes expected in the practice of accounting in businesses.
7 Perform the financial analysis of any two companies & comparatively analyze both the companies with respect
to their ratio analysis. (this topic can be given to multiple number of students)
8 Analyse and interpret various components of cash flow statement of two or more companies in an industry
and describe how an investor can use it to learn how a company financed its capital expansion. (this topic can
be given to multiple number of students)
9 Discuss the importance of Generally Accepted Accounting Principles (GAAP) and accounting ethics in the
context of modern organizations.
10 Students will select two companies and they will apply all the concepts taught in the class on the financial
data (annual report) of that company and will submit a report on inter-firm & intra-firm analysis of financial
position of the company with interpretation and recommendations
11 Student will be given 5-10 cases on the decisions involving alternative choices viz. make or buy, sell or
process further, outsourcing etc. and will submit a report on analysis of these cases with suitable
recommendations. (Cases are available in the book mentioned in Ref. 4)
12 Examine the key issues involved in strategic pricing of a new product in the context of managerial accounting
& discuss legal restrictions on setting prices.
13 Choose an organisation and identify the various responsibility centers within that organisation and discuss
the role of the responsibility accounting in fostering goal congruence of that organisation .
14 Analyse how standard costs are used in product costing and describe the changing role of standard costing
system in today's manufacturing environment.
15 Compare and analyse the smilarities and differences in the operational budgets prepared by manufacturing &
service industry firms. (this topic can be given to multiple number of students by allocating different firms)
16 State the role of accounting information in supporting decision making process in an organisation with
suitable examples.
17 Discuss the changing organizational structure and individual responsibilities of Managerial Accountants in
the era of modern business.
18 Compare and contrast the different budgeting techniques used by various organisations and examine the
applicability of each technique with suitable examples.
19 Understanding management accounting techniques in the context of organizational change.
20 A study on the Adoption and Usage of Modern Management Control Systems in Indian Firms
21 A sudy on the Knowledge Management Practices of Leading Accounting Firms in India.

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 Plan for Tutorial: (Please do not use these time slots for syllabus coverage)

Tutorial No. Topic Type of pedagogical tool(s) planned

(case analysis,problem solving test,role play,business game etc)

Tutorial 1 Accounting terms, concepts and conventions Discussion & Doubt Clearing Session

Tutorial 2 Financial statements: nature of transactions and identification of Discussion & Doubt Clearing Session
capital & revenue items.

Tutorial 3 Tools of financial analysis- Common size and comparative Problem solving,Doubt Clearing Session
statements.

Tutorial 4 Ratio analysis Problem solving

Tutorial 5 Ratio Analysis: Discussion on Journal Articles Ref. No. 6, 7 & 8 Discussion on Articles Ref. 6

Tutorial 6 Fund Flow Statements. Problem solving

Tutorial 7 Cash Flow Statements. Problem solving

After Mid-Term
Tutorial 8 Preparation of Cost Sheet, Use of cost data in managerial Discussion & Doubt Clearing Session
decision-making.

Tutorial 9 Budgetary control and preparation of budgets. Problem solving,Discussion on Article Ref. 12

Tutorial 10 Test based on HW4 on the topics of Preparation of Cost Sheet and Test
preparation of operating & financial budgets.

Tutorial 11 Marginal costing and CVP Analysis, Pricing Decisions & Transfer Problem solving
Pricing

Tutorial 12 Standard costing and variance analysis Problem solving

Tutorial 13 Test based on HW4 on the topics of Marginal costing and CVP Test
Analysis and Pricing decisions

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