Indian Institute of Management Kozhikode Post Graduate Programme in Management

INDIAN INSTITUTE OF MANAGEMENT KOZHIKODE
Post Graduate Programme in Management

Course Outline
Course Code and Course Title 203: Cost and Management Accounting
Course type Compulsory
Pre-requisites (if any) NIL
Course Credit 2
Total no. of sessions 16
Session Duration 75 minutes
Term II
Year and Batch 1st Year 2020-21, PGP-24
Sections (if any) A, B, C, D, E, F, G, H
Instructor(s) Prof. Arun Kumar Prof. Qambar Abidi Prof. Pankaj Kumar
Baag
Gopalaswamy
Contact Details 2809121, 8943716269 2809113 2809121,9433934026
[email protected] [email protected] [email protected]

n n
Office Faculty Block I/21 Faculty Block I/13 Faculty Block I/21
Consultation Wednesday, 4 to 5 PM By appointment By appointment
Hours
Introduction
The theory and practice of traditional cost and management accounting has been under severe
criticism in recent years. Professionals working in industry and academia world over have
critically debated over traditional concept’s relevance for cost control, performance appraisal,
product costing/pricing and decision making purposes. Critics content that in a world class
manufacturing environment (WCM) characterized by concepts of Just In Time (JIT) and
Total Quality Management (TQM), traditional costing becomes redundant as a performance
measurement, decision making and cost control tool. They argue that traditional costing
induces dysfunctional behavior amongst employees because of fear of adverse variances
being attributed to them and also promotes the concept of cost plus pricing which is not
relevant in the modern day dynamics where selling prices are decided by market forces.
Concepts like target costing and activity based costing are thought out to be more appropriate
in today’s manufacturing environment. However, research shows that in spite of the
introduction of these modern concepts, traditional tools like Standard costing, Marginal
costing and Budgetary control are still vogue in majority of the industries.
It is in this context that it becomes important for the student to progress with Management
Accounting studies according to the developments in the business environment. Ideally, one
should initially understand the traditional concepts, followed by various limitations attributed
to them in the changing environment and the reasons for the subsequent development of the
new topics.
Learning Outcomes/Course Objectives
 To build up the skill of students to understand basic elements, concepts and systems
of management accounting and techniques of cost estimation and benchmarking.
 To acquaint them in brief with cost accounting mechanics and processes, with an
emphasis on sound concept building and their managerial implications.
 To develop the skills of students in taking management decisions based on cost data
base.
 To introduce Budgetary Control and Standard Costing techniques as control
mechanism, and to apply management techniques to all types of organizations for
planning, decision making and control purposes in practical situations.
Textbooks and Learning Materials

Text Book(s)
1. Managerial Accounting (latest Indian edition-hard copy) -– Garrison, Noreen,

Brewer (MA1)
Reference Book(s)
1. Principles and practice of Cost Accounting : Asish K. Bhattacharyya

2. Management and Cost Accounting: Colin Drury
3. Management Control Systems: Anthony and Govindarajan
4. Cost and Effect: Robert Kaplan
5. Cost Management: Hansen & Mowen
6. Managerial Accounting by Hilton
7. Cost Accounting- A Managerial Emphasis -Horngren, Datar, and Rajan
8. Management Accounting – Pankaj Baag, Gauri Shankar & Kavitha P.
Additional Reading(s)
HBS cases: Cases shall be finalized and provided as a separate booklet.
1. Classic Pen Co.: Developing an ABC Model; Product number: 198117-
PDF-ENG – ABC costing
2. Prestige Telephone Co.; Product number: 197097-PDF-ENG – Relevant
costing and decision making
3. Camelback Communications; Product number: 185179-PDF-ENG –
Traditional costing
4. Destin Brass Products Co.; Product number: 190089-PDF-ENG –
Traditional costing
5. Dakota Paper Products; Product number: 102021-PDF-ENG – ABC costing
6. Bill French Accountant; Product number: 104039-PDF-ENG – CVP analysis
7. Hallstead Jewelers; Product number: 107060-PDF-ENG – Marginal costing
8. Hilton Manufacturing Company; Product number: 192063-PDF-ENG –
Decision making
9. Birch Paper Company; Product number: 158001-PDF-ENG – Decision
making
10. Polysar Ltd.; Product number: 187098-PDF-ENG – Budgetary control and
variance analysis
11. To Trim or Not to Trim; Product number: 100105-PDF-ENG – Relevant
Costing
12. Boston Children's Hospital: Measuring Patient Costs; Product number:
112086-PDF-ENG -- ABC costing
13. Waltham Motor Division; Product number: 184169-PDF-ENG – Budget,
ABC, and cost analysis
14. Software Associates; Product number: 101038-PDF-ENG-- Budgetary
control and variance analysis
15. Baldwin Bicycle Company; Product number: TCG001-PDF-ENG-Relavant
Costing
In addition, electronic/hard copies of relevant reading materials will be distributed as and

when required.
Technology and Software (if any)

NIL
Other Resources (Journals, Internet Websites) (if any)

NIL
Pedagogy Used/Learning Process
o To discuss conceptual aspects through lecture method.

o To impart analytical skills through exercises, mini cases and case lets.
o To provide an exposure to decision making based on cost and other related records
through discussion of cases.
Evaluation Components/Assessment of Student Learning
Assessment Tool Percentage Description

Quizzes 20% These components are required to
Midterm Exam 25% check and evaluate the students’
End term Exam 35% understanding of concepts and
application of appropriate
theories/managerial accounting tools
and techniques on decision making
Class Participation and 20% Students are expected to work in
Assignments teams/individually for case
analysis/class exercise as it would
provide them opportunities to explore
diverse perspectives for a business
problem with respect to decision
making
Session Plan
This section gives the detail regarding the topics to be covered, time required to cover each
topic, the module under which it fall, etc.
Session Module Topic Book Chapter No.

1-3 Pre mid-term Basic Cost Concepts, Ch 1, 2
elements of cost,
cost statement
4-6 Pre mid-term Overhead Cost Accounting, Ch 3, 10
Analysis and Control
7-9 Pre mid-term Activity Based Costing Ch 7
Mid-Term Examination
10-12 Post mid-term CVP Analysis & Relevant Ch 5, 6, 12
costing for decision
13-15 Post mid-term Budgetary control Ch 9
16 Post mid-term Skimming and Summarizing
the course.
End-Term Examination
Additional Instructions (if any)
1. Assignment submission dates will be intimated in the class. Details regarding the
formation of groups will be shared in the class.
2. There will be no re-examination for any missed evaluation component.
3. Students are expected to be above reproach in all scholastic activities and disciplinary
issues. Students who engage in scholastic dishonesty or indiscipline are subject to
disciplinary penalties.
4. The dates of quizzes will be announced by the PGP office.
5. Students are expected to be in the class on time. Late entry will not be permitted.
6. Laptops should not be used in the class without being instructed to do so by the instructor.
7. Mobile phones should not be brought to the class room
8. The instructor reserves all rights to fine-tune / modify the above mentioned session
plan and the grading scheme as may be required.

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INDIAN INSTITUTE OF MANAGEMENT KOZHIKODE

Post Graduate Programme in Management

[email protected] [email protected] [email protected]

Textbooks and Learning Materials

1. Managerial Accounting (latest Indian edition-hard copy) -– Garrison, Noreen,

1. Principles and practice of Cost Accounting : Asish K. Bhattacharyya

In addition, electronic/hard copies of relevant reading materials will be distributed as and

Technology and Software (if any)

Other Resources (Journals, Internet Websites) (if any)

Pedagogy Used/Learning Process

o To discuss conceptual aspects through lecture method.

Evaluation Components/Assessment of Student Learning

Assessment Tool Percentage Description

Session Module Topic Book Chapter No.

Additional Instructions (if any)

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