MBA Program

ACT502 – Managerial Accounting & Control

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A. Course General Information:

Course Code ACT502

Course Title Managerial Accounting & Control
Credit Hours 3
Contact Hours/Week 3
Category Core Course in the MBA Program
Type Mandatory in the MBA Program
Prerequisites None
Co-requisites None
Semester/Trimester Fall 2022
Class Time Tuesday (Section 1)
Class Location UB20701
Course Instructor Suman Paul Chowdhury, PhD
Office Location UB20611
Email Address spc@bracu.ac.bd
Consultation Hours Tues: 5:00 pm – 6:30 pm
Course Coordinator Suman Paul Chowdhury, PhD

B. Course Catalog Description:

Managerial Accounting is an essential tool that enhances a manager's ability to think critically and
to make economic decisions using effective analytical techniques and maintaining ethical
standards. This course focuses on the changing role of management accounting and basic
concepts; cost behaviour and cost estimation; cost-volume profit analysis; absorption and variable
costing; profit planning and activity-based budgets; flexible budgeting; cost management tools;
and decision making.
C. Rationale of the Course:
This course provides an introduction to various cost and management accounting concepts and
techniques & emphasizes the need of management accounting in the decision-making process.
The purpose of this course is to provide the graduates with an in-depth knowledge of advanced
approaches of cost and management accounting to enable them to apply costing methods and
techniques to assist management for taking appropriate decisions at strategic level. On
completion of this course, learners will be able to demonstrate costing methods and techniques
appropriate to a variety of different businesses which will help them to make sound decisions in
management levels.

D. Course Objectives (COs):

The major objectives of this course are to:
1. understand why accounting information is produced and how it is used by managers to
make decisions in a variety of organizational settings e.g. service, non-profit, retail and
manufacturing organizations.
2. use cost-volume-profit analysis in decision taking.
3. set-up and use a master budget.

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 4. understand, define, and implement management control systems and responsibility
accounting.
5. use relevant information for decision making, both for pricing and operational
decisions.

E. Course Learning Outcomes (CLOs):

On successful completion of the course, learners should be able to:

SL. CLO Description

CLO1 understand cost classification used to prepare financial statements: product
costs and period costs;
CLO2 compute the break-even point for a single or multiproduct company and
explain the effects of shifts in the sales mix on contribution margin and the
break-even point;
CLO3 prepare different types of budget, including cash budget, budgeted income
statement and budgeted balance sheet;
CLO4 compute return on investment (ROI) and show how changes in sales, expenses,
and assets affect ROI;
CLO5 use relevant costs and revenues information for decision‐making.

6. Course Plan specifying CLOs, co-curricular activities (if any), Teaching-Learning and Assessment
Strategies mapped with the CLOs:

Week Topic Teaching- Assessment Readings and

Learning Strategy Suggestive
Strategy Problems to
Review
1 Managerial Accounting: An Overview Lecture, Assignment,
-What is Managerial Accounting? Discussions, Quiz,
-Why does Managerial Accounting -Matter Problem Midterm
Core Reading:
to Your Career? solving Exam, Final
(Chap: 01)
- Managerial Accounting: Beyond the Exam
numbers

2 Managerial Accounting and Cost Concepts Lecture, Assignment,

-Costs classifications for assigning costs to Discussions, Quiz,
cost objects Problem Midterm
-Cost classifications for manufacturing solving Exam, Final
Core reading,
companies Exam
(Chap: 02)
-Cost classifications for preparing financial
Review 2(page
statements
-Cost classifications for predicting cost
49) P2-20 (61-
behavior
2), Case 2-26
- The analysis of Mixed Costs (65-6
-Cost classifications for decision making
-Traditional and contribution format
income statements
3 Cost-Volume-Profit Relationships Lecture, Assignment, Core reading,
-The basics of Cost-Volume-Profit analysis Discussions, Quiz, (Chap: 05)

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 -Break-even and Target Profit analysis Problem Midterm Review
-CVP considerations in choosing a cost solving Exam, Final Problem: CVP
structure Exam Relationship
-Structuring sales commission (page 212-4),
-Sales Mix P5-26 (226)
Case 5-33
(231-2)
4 Variable Costing and Segment Reporting: Lecture, Assignment,
Core reading,
Tools for Management Discussions, Quiz,
(Chap: 06)
-Overview of variable and absorption Problem Midterm
costing solving Exam, Final
Review
-Variable and absorption costing – an Exam
Problem 2
example
-Reconciliation of variable costing with
(page 257-8),
absorption costing income P6-25 (273-4),
-Advantages of variable costing and the Case 6-29
contribution approach (277)
5 Variable Costing and Segment Reporting: Lecture, Assignment, Core reading,
Tools for Management Discussions, Quiz, (Chap: 06)
-Segmented income statements and the Problem Midterm
contribution approach solving Exam, Final Review
-Segmented income statements – decision Exam Problem 2
making and break-even analysis (page 257-8),
-Segmented income statements-common P6-25 (273-4),
mistakes Case 6-29
(277)
6 Activity Based Costing: A Tool to Aid Lecture, Assignment, Core reading,
Decision Making Discussions, Quiz, (Chap: 7)
-Activity-based costing: An overview Problem Midterm
-Designing an activity-based costing system solving Exam, Final Review
-The mechanics of activity-based costing Exam Problem:
-Comparison of traditional and ABC costs Activity based
costing (page
312-4), P7-16
7 Midterm Examination

8 Master Budgeting Lecture, Assignment, Core reading,

What Is a Budget Discussions, Quiz, Final (Chap: 08)
Advantages of Budgeting Problem Exam
Responsibility Accounting solving Review
Choosing a Budget Period problem:
The Self-Imposed Budget Budget
Human Factors in Budgeting Schedules, P8-
The Master Budget: An Overview 22(382)
Preparing the Master Budget
The Beginning Balance Sheet
The Budgeting Assumptions
The Sales Budget
The Production Budget

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 9 Master Budgeting Lecture, Assignment, Core reading,
Inventory Purchases—Merchandising Discussions, Quiz, Final (Chap: 08)
Company Problem Exam
The Direct Materials Budget solving Review
The Direct Labor Budget problem:
The Manufacturing Overhead Budget Budget
The Ending Finished Goods Inventory Schedules, P8-
Budget 22(382)
The Selling and Administrative Expense
Budget
The Cash Budget
The Budgeted Income Statement
The Budgeted Balance Sheet
10 Flexible Budget and Performance Analysis Lecture, Assignment, Core reading,
-Flexible budgets Discussions, Quiz, Final (Chap: 09)
-Flexible budget variances Problem Exam
-Flexible budget with multiple cost drivers solving Review
-Some common error Problem:
Variance
Analysis using
flexible
budget, P9-21
(420-1), Case
9-28 (425-6)
11 Performance Measurement in Lecture, Assignment, Core reading,
Decentralized Organizations Discussions, Final Exam (Chap: 11)
-Decentralization in organizations Problem
-Responsibility Accounting solving Review
-Evaluating investment center Problem:
performance-return on investment Return on
-Residual income Investment
-Operating performance measures (Page 496-7),
-Balanced Scorecard P 11-18 (507-
8) P11-20
(509)
12 Differential Analysis: The Key to Decision Lecture, Assignment, Core reading,
Making Discussions, Final Exam (Chap: 12)
-Cost Concept for Decision making Problem
-Adding or Dropping product lines and solving Review
other segments Problem:
-The Make or Buy Decision Relevant Cost
-Opportunity Cost (page 556-7),
-Special order P12-18 (569)P
-Utilization of constrained resource 5-19 (569-70)

7. Learning Materials:
• Recommended Reading:
ᵠ Ray H. Garrison & Eric W. Noreen, Managerial Accounting, (15th Edition), McGraw‐Hill
(Required TEXTBOOK)

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 •Supplementary Readings:
ᵠ Horngrien, Foster &Datar, Cost Accounting‐ A managerial emphasis (13Th Edition),
Prentice‐Hall (TEXTBOOK)
8. Assessment and Evaluation:
• Assessment Strategy:
1. Attendance in Class Sessions (5%): Class attendance is mandatory (as per BRACU policy).
Learners are strongly encouraged to participate actively in class discussions. Points for
attendance will be given as per BRACU policy – stated below:

Attendance Percentage Marks

90% to 100% 5.00 out of 5.00
85% < 90% 4.00 out of 5.00
80% < 85% 3.00 out of 5.00
75% < 80% 2.00 out of 5.00
70% < 75% 1.00 out of 5.00
Below 70% 0.00 out of 5.00
(Course instructor’s approval required to take the final exam)

2. Quizzes (20%): Two out of three quizzes will be considered for grading purposes. The
syllabus, for the respective quizzes will be announced in the classes, which usually consists
of the topics covered in classes prior to the date of the quiz. Quiz weighs 20% of the total
marks. The duration of each quiz will be 10 to 20 minutes. Specific quiz time will be
announced during the class time and scheduled at least one week before the quiz.

3. Assignment (Individual and Group) (10%): Various problems/cases related to the course
will be assigned during the semester to be solved individually and as a group. Assignments
should be handwritten and submitted timely. Delay in submission will result in the
cancellation of the allotted marks.

4. Midterm (25%): Midterm exam will take place during the midterm week. The syllabus
includes the concepts discussed up to the middle of the semester. The exam will comprise
of short answer questions and problem-solving. There will be no makeup midterm unless
there is a valid reason and that again is at the discretion of the instructor and the
Registrar’s Office.

5. Final Exam (40%): Final Exam (40%): Final exam will be held at the end of semester to test
students’ knowledge and understanding of the issues discussed over the semester. The
test question will include some combination of short, broad, and problem-solving
questions. There will be no makeup final exam unless there is a valid reason and that again
is at the discretion of the Registrar’s Office.

• Marks Distribution:

Activities % of the Total Assessment

Class Attendance and Participation 5%
Quizzes (best 2 out of 3) 20%
Assignment (individual and group) 10%
Midterm Exam 25%
Final Exam 40%
Total 100%

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 • Make-up Procedures:
Learners are not encouraged to give make-up mid-term except on certain special
circumstances.
Make-up examinations will only be allowed to the learners with extreme medical condition
OR death in the immediate family during the semester. (Recommendations from 30th
Syndicate and 69th Academic Council, BoT approved in the 27th meeting)

Learner must notify in writing before the exam if he/she is going to miss the exam and needs
to sit for a make-up exam. Learner needs to apply to sit for the make-up exam by filling out
the appropriate form available at the office, take the necessary approval and submit the form
to the registrar office with required fees for the make-up exam.

• “I” and “W” Grades:

A grade of “I“ (Incomplete) will be granted only as a result of most extreme circumstances -
beyond a learner’s control and only after stringent verification of the circumstance and
approval. A grade of “I” is not given in lieu of an “F” or any other passing grade. Any learner
who discontinues attending class, and who does not officially drop the course/ withdraw from
the university, will receive a grade of “F”.

• Academic Integrity:
Although group-study is encouraged strongly, all learners/groups are expected to complete
all assignments individually. As such, one may not share, lend or borrow another learner’s
(group’s) work in any manner - either on paper, by computer or by word of mouth. Any
cheating, plagiarism and other forms of scholastic dishonesty or misconduct will result in the
strictest disciplinary action - according to the BRACU regulations (please refer to BRACU
learner’s Handbook).

9. Grading Policy:
Letter grades for the course will be based on the following scale - as specified in BRACU catalog.

Range of Marks Grade GPA Remarks Range of Marks Grade GPA Remarks
97 to 100 A+ 4.0 Excellent 60 to <65 C 2.0 Fair
90 to <97 A 4.0 “ 57 to <60 C‐ 1.7 “
85 to <90 A‐ 3.7 “ 55 to <57 D+ 1.3 “
80 to <85 B+ 3.3 “ 52 to <55 D 1.0 Poor
75 to <80 B 3.0 Good 50 to <52 D‐ 0.7 “
70 to <75 B‐ 2.7 “ <50 to 0 F 0.0 Failure
65 to <65 C+ 2.3 “

10. Additional Information

• Instructor’s Expectations of Learners:
Learners are expected to strive for excellence in acquiring knowledge – through attending all
classes from start to end; participating actively in class discussions; preparing for class lectures
in advance; spending at least two hours for each class-hour on, self-study, completion of
assigned tasks and preparation for class, quiz, exam, presentation, etc.; and completing and
submitting required tasks on-time.

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 Learners are also expected to maintain a classroom environment conducive to learning, be
respectful of others’ opinions and be completely honest by implementing the highest ethical
standards. It is also expected that learners will uphold this principle in all their future
endeavours, including their career activities.

• Learner Disability:
Any learner who has a disability that prevents the fullest statement of his/her abilities should
contact the instructor personally. All efforts will be made to devise the appropriate
accommodation in order to facilitate learner’s successful completion of the course.

11. Disclaimer:
Every effort will be made to ensure that the information contained in this document is adhered
to; however, it is subject to change. Changes will be notified in class, in advance. Learners are
encouraged to check with the instructor if there are any doubts. It is the learner’s responsibility
to be informed.