MBA 631rift Valley Outline

RIFT VALLEY UNIVERSITY
STADIUM CAMPUS
COLLEGE OF POST GRAGUATE COLLEGE

COURSE OUTLINE
Course Title: Financial & Managerial Accounting Course Code: MBA 631
Credit Hours: 2 Year: 2020/21 Semeser: II

Pre-requisite: None
Email: teferi761@gmail.com
Course Description
Accounting for Managers emphasizes the interpretation rather than the construction of
accounting information and encourages a critical, rather than unthinking acceptance of the
underlying assumptions behind accounting. It links theory with practical examples and case
studies drawn from real life business situations across a range of industries.
Course Objectives
By the end of this course, students will be able to:
 Familiarize students with the use of accounting information in decision making.
 Acquaint learners with the skills of financial reports analysis.
 Understand how to use accounting information in planning and control.
Course Contents
PART I: CONTEXT OF ACCOUNTING.
1.1. Introduction to Accounting: Accounting, accountability and the account.
1.2. A short history of accounting.
1.3. The role of management accounting.
1.4. Recent developments in management accounting.
1.5. Accounting and its Relationship to Shareholder Value and Corporate Governance.
1.6. Capital and product markets.
1.7. Value-based management.
1.8. Shareholder value, strategy and accounting.
1.9. Company regulation and corporate governance
1.10. Recording Financial Transactions and the Principles of Accounting.
1.11. Business events, transactions and the accounting system.
1.12. The double entry: recording transactions.
1.13. Extracting financial information from the accounting system.
1.14. Basic principles of accounting.
1.15. Cost terms and concepts: the limitations of financial accounting.
1.16. Management Control, Management Accounting and its Rational-Economic
Assumptions.
1.17. Management control systems.
1.18. Management planning and control systems and management accounting.
1.19. Non-financial performance measurement
PART II: THE USE OF FINANCIAL REPORTS FOR DECISION-MAKING.
2.1. Constructing Financial Reports:
1. International Financial Reporting Standards (IFRSs) True and fair view.
2. Framework for the Preparation and Presentation of Financial Statements.
3. Reporting profitability: the Income Statement.
2.2. Reporting financial position:
1. The Balance Sheet.
2. Accruals accounting.
3. Depreciation.
2.3. Reporting cash flow: The Cash Flow Statement.
2.4. Interpreting Financial Reports and Alternative Perspectives:
2.4.1. Annual Reports.
2.4.2. Operating and Financial Review.
2.4.3. Ratio analysis.
2.4.4. Profitability.
2.4.5. Liquidity.
2.4.6. Gearing.
2.4.7. Activity/efficiency.
2.4.8. Working capital.
2.4.9. Managing receivables.
2.4.10. Managing inventory.
2.4.11. Managing payables.
2.4.12. Shareholder return.
2.4.13. Interpreting financial information using ratios
2.5. Accounting for Inventory:
2.5.1. Introduction to Inventory.
2.5.2. Methods of costing inventory in manufacturing.
2.5.3. Job costing illustration.
2.5.4. Process costing illustration.
2.5.5. Long term contract costing.
2.5.6. Management accounting statements.
PART III: USING ACCOUNTING INFORMATION FOR DECISION-MAKING,
PLANNING AND CONTROL.
3.1. Accounting and Information Systems.
3.2. Introduction to accounting and information systems.
3.3 Internal controls for information systems
3.4. Cost behavior.
3.4.1. Cost-volume-profit analysis.
3.4.2. Alternative approaches to pricing.
3.4.3. Cost-plus pricing.
3.4.4. Target rate of return pricing.
3.4.5. Optimum selling price.
3.4.6. Special pricing decisions.
3.4.7. Transfer pricing.
3.4.8. Segmental profitability.
3.4.9. Cost classification.
3.4.10. Calculating product/service costs.
3.5. Shifts in management accounting thinking.
3.6. Alternative methods of overhead allocation.
3.7. Activity-based costing.
3.8. Behavioral implications of management accounting.
3.9. Strategic Investment Decisions.
3.9.1. Investment appraisal.
3.9.2. Accounting rate of return.
3.9.3. Payback. Discounted cash flow.
3.9.4. Comparison of techniques.
3.10 Budgeting and Budgetary Control.
1. What is budgeting?
2. The budgeting process.
3. What is budgetary control?
4. Flexible budgeting.
3.11. Variance analysis.
1. Cost variances.
2. Materials variance.
3. Labor variance.
4. Overhead variances.
5. Reconciling the variances.
6. Criticism of variance analysis.
MODE OF TEACHING-LEARNING PROCESES
A combination of the following major methods of delivery will be used for each course of the
MBA Program:
 Lecture
 Individual & or group Assignment /projects / term papers
 Class presentation and discussion by students
 Case analysis depending on the nature of the course
ASSESSMENT SCHEME
 Presentations (group and individual) 25%
 Term paper 25%
 Final examination 50%
Total 100%

MBA 631rift Valley Outline

Uploaded by

Copyright:

Available Formats

MBA 631rift Valley Outline

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

MBA 631rift Valley Outline

Uploaded by

Copyright:

Available Formats

RIFT VALLEY UNIVERSITY

COLLEGE OF POST GRAGUATE COLLEGE

Credit Hours: 2 Year: 2020/21 Semeser: II

You might also like