Managerial Accounting and Decision Making
Course Objective
This course equips students with managerial accounting tools for internal decision-making. It emphasizes cost behavior, budgeting, performance measurement, and short-term financial decisions to support strategic planning and resource optimization.
Learning Outcomes
- Use managerial accounting data to make operational and strategic decisions
- Analyze cost structures, variances, and budgeting scenarios
- Support pricing, profitability, and investment decisions with financial insights
Managerial Accounting and Decision Making Syllabus T30
| Session No. | Topics | Tool/Reading/Activity | Skill Focus |
|---|---|---|---|
| 1 | Managerial vs Financial Accounting | Accounting Overview Workshop | Internal Financial Decisioning |
| 2 | Understanding Cost Concepts | Cost Sheet Construction | Cost Structuring |
| 3 | Cost Behaviour and CVP Analysis | Break-Even Charts | Margin Planning |
| 4 | Relevant Costing | Case: Make or Buy Decision | Operational Efficiency |
| 5 | Job and Process Costing | Job Order Case Simulation | Product-Level Profitability |
| 6 | Activity-Based Costing (ABC) | Cost Driver Lab | Overhead Allocation |
| 7 | Budgeting and Forecasting | Master Budget Templates | Planning & Control |
| 8 | Standard Costing | Variance Analysis Workshop | Cost Control |
| 9 | Flexible Budgets | Scenario Planning | Adaptive Strategy |
| 10 | Performance Measurement Systems | Balanced Scorecard Design | Strategic Alignment |
| 11 | Segment Reporting | Division-Wise Analysis | Segment Profitability |
| 12 | Transfer Pricing | Intra-firm Pricing Cases | Internal Efficiency Metrics |
| 13 | Responsibility Accounting | Departmental Accountability Grid | Managerial Oversight |
| 14 | Pricing Decisions | Cost-Plus vs Target Pricing | Strategic Pricing |
| 15 | Capital Budgeting I – NPV, IRR | Excel Financial Functions | Investment Evaluation |
| 16 | Capital Budgeting II – Payback, ARR | Case: Equipment Investment | Time-Value of Money |
| 17 | Decision-Making under Uncertainty | Risk Grid Analysis | Sensitivity and Risk Assessment |
| 18 | Ethics in Managerial Accounting | Fraud Case Studies | Governance Awareness |
| 19 | Capstone Project Briefing | Group Work on Business Scenario | Application of Full Cycle |
| 20 | Project Presentations | Report + Strategic Deck | Financial Storytelling |
Textbook & Resources
- Primary Tools & Techniques: Excel, CVP Analysis Templates, Budgeting Sheets, Balanced Scorecard, Cost Sheet Builders
Recommended Books:
- Managerial Accounting – Ray Garrison, Eric Noreen
- Cost Accounting: A Managerial Emphasis – Charles T. Horngren