TEACHING-LEARNING & ASSESSMENT

Faculty Faculty of Business Studies

PoE Department of Business Administration (DBA)
Program Bachelor of Business Administration

Course Information
Course code BUS 2203
Course title Introduction to Cost and Management Accounting
Category Minor
Level and Term L2 T2
Credits 3.00
L T P C
Contact hours/week
3 0 0 3
Notional hours/semester 120 hours/sem. [1 credit = 40 notional hours/sem.]
Face-to-face teaching-learning 42 hours/sem. [ 1 credit = 1 hour/week., 1 sem. = 14 weeks]
28 [1 hour & 30 Minutes/class, 2 classes/week., 14
Total Classes
weeks/semester]
Prerequisites [if any] None
Class size 50 students
Campus Permanent Campus

Class Schedule
Class Day Class Hours Venue
Sunday 9.10 - 10.15 AM 204
Tuesday 12.00 – 1.15 PM 204

Course Teacher
Name ATM Adnan
Designation Asst. Professor
Specialization Accounting and Finance
Office Room 212
Email atmadnan@buft.edu.bd
Phone Ext. 1387, Cell: +8801843770138
Day Hour Venue
Counseling hours Sunday 3.35 - 4.50 212
Tuesday 3.35 - 4.50 212

Course Rationale
This course teaches the basic concepts of cost and management accounting and thereby improving
students’ technical know-how in these two areas and improving their employment prospects. The
course seeks to enable students to recognize their strengths and needs in the calculation of cost, using
the cost information in managing the organization and to give them the confidence to use different
tools of management accounting more effectively to achieve their own goals as well as the goals of
the organization. It also seeks to develop the students’ skills in independent learning outside of the
classroom.
Course Synopsis
Students will understand the concepts of cost and different tools of cost and management accounting.
They will have the capability to determine the cost of the products, services, and any other cost
objects. They will know how to apply cost information in decision making. They will be able to
analyze the differences between different types of costs, such as fixed cost and variable cost, product
cost and period cost. The will be able to analyze and select the best suitable costing method for an
organization. Students will acquire knowledge to evaluate the performance of the organization by
using different management accounting tools and techniques. They will learn to produce different
management reports.

Course Learning Outcomes [CLOs]

After learning this course, students should be able to:
Understand and explain different concepts of cost accounting and management
CLO 1 accounting such as theory of constraints, value chain and lean thinking model,
concepts of cost-volume-profit (CVP), activity-based costing (ABC), budgets etc.
Apply different concepts in preparing different schedules/ statements such as
CLO 2 schedule of cost of goods manufactured, schedule of cost of goods sold, income
statement etc.
CLO 3 Prepare a report on current costing systems of different industries.

CLO/PLO Mapping
[‘√’ marked cells indicate correlations, empty cells indicate no correlations]
PLOs PSOs
CLOs PLO PLO PLO PLO PLO PLO PLO PLO PLO PLO PSO PSO
1 2 3 4 5 6 7 8 9 10 1 2
CLO 1 √ √
CLO 2 √ √
CLO 3 √ √

Contents

Introduction: Definition, objectives, importance, scope, differences among financial accounting, cost
accounting and management accounting, use of accounting information for financial decision making,
theory of constraints, techniques of management accounting, limitations of management accounting,
lean thinking model, and six sigma.

Cost Concepts and Its Classification: Concept of cost, expense, and loss, cost classifications on the
basis of different bases, and preparation of cost sheet: schedules of cost of goods manufactured, cost
of goods sold and income statement.
Job Order Costing: Job-order costing- an overview, the flow of costs, schedules of cost of goods
manufactured and cost of goods sold, underapplied and overapplied overhead, job-order costing in
service companies.

Process Costing: Comparison between job-order costing and process costing- similarities and
dissimilarities, cost flows in process costing, equivalent units of production, computation and
application of costs, operation costing.

Cost Behavior: Analysis and Use: Types of cost behavior pattern, types of variable costs, types of
fixed costs, mixed costs, analysis of mixed costs, contribution format income statement.

Cost Volume Profit Analysis: The basics of cost volume profit analysis, CVP relationship in
equation form and graphic form, concept of contribution margin (CM) and CM ratio, break-even point
and target profit analysis, concept of margin of safety, and operating leverage, sales mix and break-
even analysis.

Variable Costing: A Tool for Management: Concept of absorption costing and variable costing,
calculation of unit cost using absorption costing and variable costing, preparation of income statement
using absorption costing, and variable costing.

Activity-Based Costing (ABC): Overview of activity-based costing, nonmanufacturing costs and

activity-based costing, manufacturing costs and activity-based costing, designing an activity-based
costing (ABC) system, the mechanics of activity-based costing, comparison of traditional and ABC
product costs, targeting process improvements, activity-based costing and external reports, and the
limitations of activity-based costing.

Budgetary Control: The basic framework of budgeting: advantages of budgeting, responsibility

accounting, choosing a budget period, the self-imposed budget, the budget committee, overview of
master budget, preparing the master budget: sales budget, production budget, direct materials budget,
direct labor budget, manufacturing overhead budget, ending finished goods inventory budget, selling
and administrative expense budget. Cash budget, budgeted income statement, and budgeted balance
sheet.

Teaching-Learning and CLOs mapping

Domain/Level
Teaching Week
CLOs Contents Hours of Learning
Strategies Lecture
Taxonomy
Week
Introduction to OBE, Course TLA,
1
--- Rules and Regulations, Policies, 3 ---
Lecture
etc.
1–2

- White board
Introduction: Definition, Week
illustration.
CLO objectives, importance, scope, 2-5 C-2
differences among financial - Lecture 12
1&2 Lecture C-3
accounting, cost accounting and discussion with 3 – 10
management accounting, use of multimedia.
 accounting information for - Video
financial decision making, theory presentation.
of constraints, techniques of
- Interactive
management accounting,
discussion.
limitations of management
accounting, lean thinking model, - Group/panel
and six sigma. discussion.

Cost Concepts and Its

Classification: Concept of cost,
expense, and loss, cost
classifications on the basis of
different bases, and preparation of
cost sheet: schedules of cost of
goods manufactured, cost of goods
sold and income statement.
Job Order Costing: Job-order
costing- an overview, the flow of
costs, schedules of cost of goods
manufactured and cost of goods
sold, underapplied and overapplied
overhead, job-order costing in
service companies.
CLO Process Costing: Comparison Week 12 C-2
1&2 between job-order costing and 6-9 C-3
process costing- similarities and Lecture
dissimilarities, cost flows in 11 – 18
process costing, equivalent units of
production, computation and
application of costs, operation
costing.

Cost Behavior: Analysis and

Use: Types of cost behavior
pattern, types of variable costs,
types of fixed costs, mixed costs,
analysis of mixed costs,
contribution format income
statement.

Cost Volume Profit Analysis:

The basics of cost volume profit
analysis, CVP relationship in
equation form and graphic form,
concept of contribution margin
(CM) and CM ratio, break-even
point and target profit analysis,
concept of margin of safety, and
operating leverage, sales mix and
 break-even analysis.
Variable Costing: A Tool for
Management: Concept of
absorption costing and variable
costing, calculation of unit cost
using absorption costing and
variable costing, preparation of
income statement using absorption
costing, and variable costing.

Activity-Based Costing (ABC):

Overview of activity-based
costing, nonmanufacturing costs
and activity-based costing,
manufacturing costs and activity-
based costing, designing an
activity-based costing (ABC)
system, the mechanics of activity-
based costing, comparison of
traditional and ABC product costs,
targeting process improvements, Week
CLO activity-based costing and external 10-13
12 C-2
1&2 reports, and the limitations of Lecture
C-3
activity-based costing. 19 – 26

Budgetary Control: The basic

framework of budgeting:
advantages of budgeting,
responsibility accounting, choosing
a budget period, the self-imposed
budget, the budget committee,
overview of master budget,
preparing the master budget: sales
budget, production budget, direct
materials budget, direct labor
budget, manufacturing overhead
budget, ending finished goods
inventory budget, selling and
administrative expense budget.
Cash budget, budgeted income
statement, and budgeted balance
sheet.

Week
CLO Prepare and present a report on 14
- Discussion 3 A-4
3 different costing systems. Lecture
27 – 28
References
 Handouts/journals/documents supplied by the course teacher.
 Managerial Accounting, 13th edition- R.H. Garrison, Eric W. Noreen & Petter C. Brewer
(McGraw-Hill Irwin).
 Cost Accounting, 13th edition- Horngren, Datar and Foster.
 Cost Accounting: Theory & Practice, 2nd edition- Md. Abdur Rouf.
 Introduction to Management Accounting, 12th edition- Charles T. Horngern, Gary L. Sundem,
William O. Stratton (Prentice-Hall of India Private Limited).
 Managerial Accounting, 6th edition- R.H. Hilton.

Teaching Methodology
The course is taught in English so that the students will have an opportunity to enhance their English
ability. Lectures are delivered using a Multimedia Projector such that students have the privilege to
view information or materials up close. Lectures include a number of interactive discussions i.e.
students are given chances to speak because it is believed that they have much to contribute to the
curriculum and to each other and, therefore, lecture sessions provide numerous opportunities for them
to do so. The methodology of academic transaction is such as to encourage resilience – the holistic
understanding of contexts, the flexibility to adopt new ideas, and the capability to persevere.
Assessment Strategy

CLOs assessment:
Class Tests [10] Assignment &
CLOs CT 1 CT 2 Presentation SME [30] SEE [40]
[10]
CLO 1 √ √
CLO 2 √ √
CLO 3 √

Course assessment:
Bloom’s Category (Affective) Assignment [5 marks] Presentation [5 marks]
A-1 Receiving
A-2 Responding
A-3 Valuing
A-4 Organization 10
A-5 Characterization

SME [30 marks] SEE [40 marks]

Bloom’s Category (Cognitive)
Written Exam Written Exam
C-1 Remember
C-2 Understand 10 10
C-3 Apply 20 30
C-4 Analyze
C-5 Evaluate
C-6 Create

Assessment Overview
Individual student will be assessed as per the university grading guide. See what elements can apply
to the different assessment elements.

 Class Performance 10% (CIE)

 Class Tests 10% (CIE)
 Assignment/Presentation 10% (CIE)
 Semester Mid Examination 30% (SME)
 Semester End Examination 40% (SEE)

Grading

UGC Universal Grading Policy

F D C C+ B- B B+ A- A A+

< 40 40 – <45 45 – <50 50 – <55 55 – <60 60 – <65 65 – <70 70 – <75 75 – <80 ≥ 80

Reference Aids
 Students must manage reference books/book chapters and handouts beforehand and must keep all
those while coming to attend any class.
 Students must carry learning materials like- calculator, notebook, pen, pencils, eraser, sharpener,
etc. with them anytime coming to attend any class. Borrowing such items in the exam hall or in a
classroom from fellow classmates is strictly prohibited. Students are also advised to keep few
sheets of A4 size blank paper with them every class.

Additional Course Policies

Class Performance comprises two things; attendance and performance (taking part
Class in class activity). CP is very important. Students must have 75% CP marks to sit
Performance for the SEE. Students having 60 - <75% CP marks will be penalized and having
<60% won’t be allowed at all.
There will be two class tests (regular and/or surprise), 10 points for each. Both
CTs
class tests will be counted and the points will be averaged.
There will be one presentation, 10 points. Appearing in presentation is a must, as
Presentation
there will be no second chance.
CTs, SME and SEE will be of closed book and closed notes type. Mobile phone is
Exams strictly prohibited in the exam hall. Students are insisted to carry their own watch
and synchronize time during exam hours.
Unauthorized absence in any class test shall score zero mark and no make-up class
Test Policy test will be allowed. No make-up for SME or SEE unless otherwise authorized.
Make-up exams are usually harder/tougher than the regular one.
Honour Code Students are expected to adhere to the guidelines for academic integrity. This in
 other words means that ANY activity that goes against the rules set forth when
giving a homework or a test or taking class roll will be dealt with a very strict
fashion.
Grades are valuable: Honours and Integrity are priceless.

Social and Moral Capital

A student is advised to undertake the following commitments for moral development:

 I promise to be proactive;
 I promise to be punctual and attentive in class;
 I promise to maintain inclusive learning environment;
 I promise to ensure mutual respect;
 I promise to cooperate in group learning;
 I promise to be innovative and creative;
 I promise to follow dress code and wear ID card;
 I promise to remain clean and decent in all levels;
 I promise to follow and review day to day class;
 I promise to avoid conspiracy;
 I promise to prioritize honesty and faith;
 I promise to be motivated for asking question and encourage feedback;
 I promise to develop attitude for speaking in English;
 I promise I will not ignore to carry out any assignment or commitment;
 I promise to maintain eco-friendly environment in the campus;
 I promise to be sincere for class preparation;
 I promise to keep the cellphone mute while in class;
 I promise to carry course pack and learning stuffs in class;
 I promise to maintain loyalty and trust to the university;
 I promise to avoid unfair means and plagiarism in exam, reports and assignments.