MGT705 : Advanced Cost and Management Accounting

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Course Info

Course Category

Accounting, Banking & Finance

Course Level

Graduate

Credit Hours

3

Pre-requisites

N/A

Instructor

Shahid Mohsin
FCA
Institute of Chartered Accountants in England & Wales

Course Contents

COURSE OUTLINE

ADVANCED COST AND MANAGEMENT ACCOUNTING (MGT705)

Module

Pack

Module Objective(s)

Module Topic

Contents Covered

Relevant Video

Lecture(s)

Recommended Book / Other Study Resources

1

To under the terms

Introduction of Management Accounting

1.       Basic Definition of Cost and Management Accounting

·         Uses of Accounting Information

·         Users

·         Decision Making Process

·         New Management Approaches

2.       Cost Term and Concepts

·         Direct and Indirect costs

·         Product and Period costs

·         Cost behavior in relation to volume of activity

·         Relevant and Irrelevant costs

·         Avoidable and Unavoidable costs

·         Sunk costs

·         Opportunity costs

·         Incremental and Marginal costs

1 & 2

Management & Cost Accounting by Colin Drury (7th Edition)

Chapter 1 & 2

2

To encapsulate the basics of Cost Volume & Profitability Analysis

Cost Volume & Profit Analysis

·         Break Even point

·         Separation of Semi-Variable and high low method

·         Margin of safety

·         High-low method

·         Multi-product break-even analysis

3, 4 & 5

Management & Cost Accounting by Colin Drury (7th Edition)

Chapter – 8

3

To focus on Measuring costs and benefits for non-routine decisions

Relevant Costing

·         Qualitative factors

·         Replacement of equipment

·         Product mix decisions – when capacity constraint exists

·         Discontinuation Decisions

 

6,7,8 & 9

Management & Cost Accounting by Colin Drury (7th Edition)

Chapter – 9

4

To apply and analyze the effect of Activity Based Costing Techniques for decision making

Activity Based Costing

·         ABC – Cost Drivers

·         Activities Hierarchies

·         Activity Based Costing and Profitable Analysis

·         Pricing Decision and Profitability Analysis

·         Target Costing

·         Short-run and Long-run product mix decision

·         Product life cycle

·         Customer Profitability Analysis

10,11,12,13,14,15 & 16

Management & Cost Accounting by Colin Drury (7th Edition)

Chapter – 10 & 11

5

To have a detailed knowledge of budgeting process

The Budgeting Process

1.      Stages in Planning Process

·         Multiple Functions of Budgets

·         Sales Budget

·         Annual Production Budget

·         Direct Material Purchase Budget

·         Factory Overhead Budget

·         Selling and Administrative Budget

·         Master Budget

2.      Activity Based Budgeting

·         Cash Budgets

·         Stages in Activity Based Budgeting

·         Zero Based Budgeting

 

17,18,19,20,21 & 22

Management & Cost Accounting by Colin Drury (7th Edition)

Chapter – 15

6

To learn the Transfer Pricing in Divisionalized Companies

Transfer Pricing Methods

·         Alternative Pricing Methods

·         Resolving Pricing Methods

·         International Pricing Methods

 

23,24 & 25

Management & Cost Accounting by Colin Drury (7th Edition)

Chapter – 20

7

To learn the detailed knowledge of Cost Management Techniques

Cost Management

·         Life Cycle Costing

·         Target Cost – Strategic Perspective

·         Tear Down Analysis

·         Value Engineering

·         Kaizen Costing

·         Activity Based Management

·         Traditional vs. ABM analysis

·         Business Process Re-engineering

·         Cost Management and Volume Chain

·         JIT and Management Accounting

·         Strategic Management Accounting

 

26,27,28,29,30 & 31

Management & Cost Accounting by Colin Drury (7th Edition)

Chapter – 21

8

To learn and apply the balanced score card technique for the Strategic Costing Perspective

The Balanced Score Card

·         Benefits and Limitation

·         Establishment of Objectives and Performance Measures - Four Perspectives

32,33,34,35

Management & Cost Accounting by Colin Drury (7th Edition)

Chapter – 22

9

To learn and apply different quantitative techniques being used in Management Accounting

Application of Quantitative Methods to Management Accounting

·         Quantitative Models

o   EOQ

o   ABC

o   MRP

o   JIT

·         Linear Programming

·         Capital Investment Decisions

o   NPV

o   IRR

o   Payback Period

o   ARR

36,37,38,39,40,41,42,43 & 44

Management & Cost Accounting by Colin Drury (7th Edition)

Chapter – 13, 14 & 25