Shikha - Bhatia@imi - Edu: Page 1 of 6

International Management Institute, Delhi
Course outline: Management Accounting

Area: Accounting and Finance
Postgraduate Diploma in Business Management (HRM)
Term I (July-September 2019)
________________________________________________________________________
Instructor:
Name : Dr. Shikha Bhatia
Room no. : 503
Email : [email protected]
Phone (Extn no.) : 47194117 Ext. 117
Consultation Hours : 2:00 pm – 4:00 pm Monday – Friday

_____________________________________________________________________
1. Course Description:
Accounting is a language that communicates economic information to all stakeholders of an

organization. The stakeholders include shareholders, managers, employees, creditors,
government and potential investors. Each of these stakeholders has its own requirements for
information. For example, shareholders require information relating to the value of their
investment and income on their shareholdings. Managers need information that will assist
them in their decision making and control activities. The basis objective of the course is to
provide sufficient information to the meet the need of the various users at the lowest cost. It
is possible to distinguish between two branches of accounting which reflect the internal and
external users of accounting information. Management Accounting is concerned with the
provision of information to people within the organization to help them make better decision
and improve the efficiency and effectiveness of existing operations, whereas financial
accounting is concerned with the provision of information to external parties outside the
organization.
2. Course Objectives:
1. To develop understanding of the basic financial and cost accounting concepts, the
process of accounting and the accounting standards.
2. To understand financial statements from the perspective of preparer as well as the
users.
3. To analyze and interpret financial Statements for decision-making
4. To understand the use of accounting information for internal planning, control
decision making and performance evaluation.
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Mapping between Course objectives and Program Objectives
Program Objectives Course Course Course Course

Objectiv Objectiv Objectiv Objectiv
e1 e2 e3 e4
Program Objective 1.1
Demonstrate enhanced oral and written
√ √
communication capability in business
situations.
Demonstrate capability to make effective
presentations related to business cases and √ √ √ √
research through correct and precise use of
language leading to logical conclusions.
Demonstrate values for ethical decision √
making
Demonstrate ability to discern between
√ √
ethical and non-ethical practices in business
situations.
Demonstrate enhanced analytical thinking in √ √
business situations.
Demonstrate ability to solve business √ √ √
problems based on analytical thinking.
Demonstrate understanding of general
√ √
management and functional areas of
business organizations.
Demonstrate ability to apply concepts, tools
and techniques of general management as √ √ √
well as functional areas to real life
situations.
3. Pedagogy
The pedagogy for this course will be a judicious mix of lectures, numerical problems, case
discussions and analysis. Active participation by students is an important feature of the
course. To apply the learning during this course, the student will be doing a group project.
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4. Method of Evaluation
Quizzes (20%): The quizzes will be based on the course covered in the previous classes.
Therefore, keeping pace with the course covered will be important. There quizzes will be
spread across the entire course.
Group project (10%): Each group is expected to work on the term project allocated by the
instructor. The project will entail understanding and analysis of financial statements of the
across various industries allocated to the groups. The final appraisal of the project will ensure
adequate evaluation of the learning.
Mid Term (30%): Mid-term exam will cover approximately half of the total course. Exact
syllabus will be announced by the faculty in advance. Questions asked will cover theoretical
concepts as well as assess analytical capability.
End Term (40%): End term exam will include all the topics that will be covered during post
mid-term sessions. The exam will assess subject understanding through application of
concepts to analyze real life business situations.
5. Resources:
5.1 Text Book:
Financial Accounting for Managers, Sanjay Dhamija, 3rd ed., Pearson, 2018
5.2 Reference Books:
• Financial Accounting: A Managerial Emphasis, R. Narayanaswami, 6th ed., PHI, 2017.

• Financial Accounting: Fundamentals Accounting and Reporting, R. K. Arora, 1st ed.,
Wiley, 2017
• Financial accounting: Reporting and Analysis, James Stice and Earl K. Stice, 7th ed.,
Cengage Learning India, 2006
• Corporate Financial Reporting and Analysis by Asish K Bhattacharyya, 1st ed., PHI
Learning, 2018
• Management Accounting, Sawyers R.B., Jackson S.R., Jenkins J.G. and Arora R. K., 2nd
ed., Cengage learning, 2015.
• Management Accounting, Shah Parekh, 2nd ed., Oxford, 2016
• Management and Cost Accounting, Colin, Drury, 8th ed., Cengage Learning, 2014
• Management Accounting, Jiambalvo James, 5th ed., Wiley India, 2015.
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5.3 Internet Resources
• www.accountingcoach.com/: This website has details on all accounting topics. It has an
exhaustive glossary of accounting terms. Apart from explaining various accounting
concepts, this website has host of other interactive tools like Quizzes, Questions &
Answers, Crosswords, and templates to practice the concepts.
• www.aaahq.org: This is the website of American Accounting Association. The American
Accounting Association promotes worldwide excellence in accounting education,
research and practice. This website contains a digital library which has exhaustive
archive of accounting publications. It also has latest accounting news and research
articles.
• www.accountingtoday.com: AccountingToday.com is a leading provider of online
business news for the tax and accounting community, offering breaking news, in-depth
features, insightful editorial analysis, and a host of Web-related resources and services.
This website would help students to keep abreast with the latest in the field of accounting.
• www.coursera.org: Students are advised to join a course on Coursera – “An Introduction
to Financial Accounting” taken by Brian J Bushee from Wharton (University of
Pennsylvania) - https://class.coursera.org/accounting-001. The course covers most of the
topics as we have in our ADM course and can help students to reiterate and test their
learning further.
• The students are also advised to read The Economic Times and Business Today regularly
for getting the latest updates.
6. Session Plan:
The course provides the necessary exposure to the students on the basics of accounting and
its analysis. The first 13 sessions cover financial statements composition and analysis, the
14th session deals with human resource accounting and last 6 sessions deal with managerial
decision-making issues using data from accounting.
Session Plan:
Session(s) Topic Readings/ Cases/ Exercises

1-4 Statement of Profit and Loss Chapter 5
• Format Maruti Suzuki
• Revenue and expenses Annual Report 2017-18
• Exceptional items
• Tax expenses Case 5.2
• Profit/Loss from discontinued operations
• Profit/Loss for the period Reading: Important Accounting
Concepts: The Rules that Shape
• Other comprehensive income
Financial Statements #
• Earnings per share
5801BC-PDF-ENG
• Various measures of profit
• Appropriation of profit
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5-8 The Balance Sheet Chapter 6
• Format Maruti Suzuki
• Assets Annual Report 2017-18
• Equity and liabilities
Case 6.2
9 - 11 Financial Statement Analysis Chapter 14
• Common size statements Maruti Suzuki Annual Report
• Indexed financial statements 2017-18
• Trend Analysis
• Ratio Analysis Case: 14.1
• Insolvency Prediction Reading: Introduction to
Financial Ratios and Financial
Statement Analysis #9-193-029
12-13 Cash Flow Statement
Chapter 11
• Concept and its need
• Cash flow from operating activities
Case 11.3
• Cash flow from investing activities
• Cash flow from financial activities
14 Overview of Human Resource Accounting
Reading: What You Need to
and Employee’s Stock Options
Know About Stock Options #
R00205-PDF-ENG
15 Introduction to Managerial Accounting

Reading:
• Informational need of management
Brief Introduction to Cost
• Interface between Financial, Cost and
Accounting # 192068-PDF-
Managerial Accounting
ENG
• Costing terminology and cost flows
16-17 Product Costing
• Recording Direct Cost Reading: Cost concepts and
• Allocating Indirect Cost methods #BEP212-PDF-ENG
• Preparation of Cost Sheet
18-19 Cost Behavior and Cost-Volume-Profit
Analysis
• Cost Volume Profit (CVP) relationship
Reading: Managerial Decision
• Cost Behavior pattern
Making # BEP215-PDF-ENG
• Marginal Costing
• Contribution margin concept
• Breakeven analysis
20 Decision Making based on Incremental
Costing
Reading: Managerial Decision
• Dropping a product line Making # BEP215-PDF-ENG
• Pricing Special orders
• Selecting the most profitable option
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7. Academic integrity
a) Plagiarism is the use of or presentation of ideas, works that are not one’s own and
which are not common knowledge, without granting credit to the originator. Plagiarism
is unacceptable in IMI and will invite penalty. Type and extent of penalty will be at the
discretion of the concerned faculty.
b) Cheating means using written, verbal or electronic sources of aid during an

examination/ quiz/ assignment or providing such assistance to other students (except in
cases where it is expressly permitted by the faculty). It also includes providing false data
or references/list of sources which either do not exist or have not been used, having
another individual write your paper or assignment or purchasing a paper for one’s own
submission. Cheating is strictly prohibited at IMI and will invite penalty as per policies
of the Institute.
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International Management Institute, Delhi

Course outline: Management Accounting

Consultation Hours : 2:00 pm – 4:00 pm Monday – Friday

Accounting is a language that communicates economic information to all stakeholders of an

Program Objectives Course Course Course Course

5.1 Text Book:

5.2 Reference Books:

• Financial Accounting: A Managerial Emphasis, R. Narayanaswami, 6th ed., PHI, 2017.

Session(s) Topic Readings/ Cases/ Exercises

15 Introduction to Managerial Accounting

b) Cheating means using written, verbal or electronic sources of aid during an

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