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ACCT2013 : Accounting II (M) Instructor: PROF. AZFAR ALI

The pre-requisite for this course is financial accounting concepts as applied in trading andmanufacturing business concerns and their application in business decision making.

This course emphasizes the use of accounting information in effective management. For effective

management we need timely, relevant and accurate information, so this course is objectivelyfocused on such information. In this course students study the reports , statements and analyticaltools used by management and the manner in which they are applied in planning, controlling,decision making and performance evaluation of various components of a corporate organization.This course includes basic cost term and concepts, costing systems, cost reports, cost behavior,cost-volume profit analysis, profit planning, variable and absorption costing, standard costing andbudgeting techniques.

After studying this course the students should be able to:

The course in objectively focussed on management accounting which primarily deals with decisionmaking. The first part of study would cover introduction to management accounting, the purpose of

management accounting and a comparison with financial accounting. The second part deals withunderstanding the basic cost terms, concepts, cost reports, cost behaviour, costing systems like

job order costing and process costing, marginal and absorption costing and detailed discussionsregarding cost-volume-profit relationship and activity based costing, relevant cost for decisionmaking and pricing of products and services. The third part deals with budgeting for managers.After studying this course, the student should be able to : a. critically analyze the financialinformation regarding costs and costing, costing techniques, pricing decision and apply the resultsin business management. b.Obtain an understanding necessary to prepare various operatingbudgets alongwith some other budgeting techniques like flexible budgeting, zero based budgeting.

Lectures Reading Material Guest Speakers Industrial / Corporate Visits Skills DevelopmentExercises Project Report / Term Paper Recommended Text Suplementary Texts Periodical WatchExercises / Seminars Documentaries / Movies Handouts Case Studies Any other Teaching-Learning Tool

Managerial Accounting by Garrison and Noreen , 14th Edition, Published by McGraw Hill

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Managerial Accounting by Ronald W. Hilton , 6th Edition, Published by McGraw Hill

Introduction to Management Accountin g by Charles T. Horngren , 14th Edition, Published byPearson

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Exam Type Percentage(%)

Quiz 5

Assignments 5

Project-Presentation 15

Mid Term 30

Final Term 40

Class Participation 5

Week Contents Tasks/Activities

1

Introduction to course outline What is Management

Accounting. Planning & Controlling Cycle, FinancialAccounting vs. Managerial Accounting. Brief Overview ofOrganization Strucuture

2Product Cost/Manufcaturing Costs, Non-ManufacturingCosts, Product Costs vs. Period Costs

3Classification of Costs for financial Statements Predictingcost behaviour, Assigning costs to cost objects

4Job Order Costing vs. Process Costing Job CostingOverview, Job Order Cost Sheet, Process Costing

5Process Costing and Job order costing differences, Costflow in Process Costing, Equivalent units of Production

6

Cost Behavior Patterns, Variable and Step Variable Costs,

Fixed costs and Step Fixed Costs, Committed andDiscretionary Fixed Costs,

7Cost-volume Profit Analysis Break-even Analysis, TargetProfit and Margin of Safety, operating Leverage, sales mixand break-even analysis.

8Marginal and Absorption Costing Income StatementComparison under both methods

9Activity Based Costing Steps for Implementing ABCSystem Comparison with Traditional Costing and

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managerial decision making

10Relevant Costs for Decision Making Buy or Make decisionAdding or Dropping Product Lines

11Intoduction to Pricing Products and Servcices, TransferPricing, an Economis`s approach

12 Budgeting, Basic Framework, Budget Committees, MasterBudget, Sales Budget and Production Budget

13Direct Material Budget, Direct Labor Budget,manufacturing overhead Budget, Finished GoodsInventory Budget, Selling and Admn. Budget

14Cash Budget, Budgeted Income Statement, BudgetedBalance Sheet,

15 Standard Costing and Management by Exception

16Flexible Budgets, Incremental Budgets, Zero basedbudgets

17 Final Term

Plagiarism and Intellectual Property Policy:

Reproduction of the writing or literary work or concepts or inventions of another person as one's ownproduct without writing proper acknowledgment to the actual author, willfully or unintentionally, is termedas plagiarism. The actual author has a right to bring a lawsuit for unauthorized use of his/her work againstthe plagiarist. University of Central Punjab discourages plagiarism and warns students to be careful whileusing someone else's work in their written work to meet requirements of a course or a degree. It may beclarified that quotes which are brief or are acknowledged as quotes do not constitute plagiarism.

Be watchful - Every written material/assignment shall come under the careful scrutiny of others. Do ensurethat published work of others is properly cited; source of unpublished material obtained from lectures, oralcommunication or interviews are duly acknowledged. UCP's statutes 2004 - Clause 22 at Chapter 15 andUCP regulations 2005 - Clause 8.18 and Clause 13 at Chapter 13 deal with plagiarism and intellectualproperty rights, which may be consulted by the UCP students and employees.

A fellow students, a Faculty member or member of the UCP Administration can report any instance of

plagiarism to the Dean of the Faculty, who after ascertaining extant of Plagiarized material will determinepenalty the against the student according to UCP Regulations, 2005.

University of Central Punjab, Ghulam Ghous Wala, Khayaban-e-Jinnah Road,Opposite Shaukat Khanum Hospital, M.A. Johar Town, Lahore, Pakistan.

Tel: +92 42 35880007