ACCOUNTING FOR DECISION MAKERS

Participant: MBA AY 2019 -20

Credit: 20 Sessions: 20

Program Objectives:

This course will enable the future managers with a level of practical understanding that is genuinely
useful in the workplace by covering a range of key financial and management accounting areas; to
interpret financial statements and to understand cost classification and behaviour in short-term decision
making as well as the principles of budgeting and budgetary control.

Learning Outcomes:

After completion of the module, the student will be able to:

 Demonstrate a critical understanding of, and evaluate, balance sheets and income
statements
 Interpret the financial data commonly provided by accountants to managers
 Use marginal costing & breakeven analysis to evaluate and solve of a range of realistic
problems
 Prepare & interpret cash budgets as part of budgetary control

Program Modules:

Module I: Introduction to Accounts

Module II: Financial Statements

Module III: Ratio Analysis

Module IV: Working Capital

Module V: Cost-Volume-Profit analysis

SESSION-WISE BREAK-UP

Session 1 – 2: Icebreaker – introduction to Accounts: Golden rule; Journal entry, Ledgers, Trial Balance,
Trading, Profit & Loss a/c and Balance Sheet.

Session 3: Different types of Accounting – Financial & Management; role and use of these types.

Session 4: Quiz on above + Revision & discussion on Module 1.

Session 5: Introduction to Financial Statements. Preparing Trading, Profit & Loss a/c & Balance
Sheet. Understanding concepts & practice.

Session 6: Practice of Financial Statements.

Session 7: Accounting conventions, Uses and limitations of Financial Statements.

Session 8: Quiz on Financial Statements + Revision & Discussion on Module 2.

Session 9: Introduction to Ratios – its importance and usage.

Session 10: Different types of ratios, their significance & their limitations.

Session 11: Practice and revision on ratio sums.

Session 12: Quiz on ratios + Introduction to Working Capital – what is it & its importance.

Session 13: Working Capital - Inventory, Receivables & Payables.

Session 14: Working Capital – Operating Cash Cycle + case study on Working Capital

Session 15: Quiz on Working Capital + Introduction to concept of CVP analysis.

Session 16: Fixed and Variable costs; Break-even analysis & Marginal costing for decision analysis.

Session 17: Case Study discussion on Break – even & marginal costing.

Session 18: Quiz on CVP + Introduction to Budgeting – its importance.

Session 19: Budgeting Process; linking of different budgets to the main budget or master budget.

Session 20: Cash Budget & Cash Flows; why profit is not same as cash flow.

Session 21: Case study discussion on Budgeting.

Session 22: Quiz on Budgeting + Revision.

Session 23: Revision of entire syllabus.

Detailed Session Plan activities (including materials)
Session No Topic/s Book/s Articles Video Clips Results
/Case-Study
1 Introduction- Any Class-
ice breaker; 12 std a/c’s
Basics of a/c’s book
– Golden Rule
2 Journal entry; Any Class- HBR guide Accounting
Trial Balance; 12 std a/c’s to Finance Basics –
Ledgers; Cash book basics for Mexus
Book; beginners Education
P/L & B/S video
3 Financial & Any Class- Accounting
Management 12 std a/c’s Fraud at
A/cing book WorldCom –
HBR case
4 Quiz; Revision Results of
& Discussion Quiz by
on Module 1 end of day.
5 Financial Atrill & Superior
Statements – McLaney Clamps –
understanding HBR case
concepts &
practices
6 Preparing Any Class-
TDPL & BS 12 std a/c’s
book
7 Accounting Atrill & Sears,
Conventions – McLaney Roebuck v
uses & Wal-Mart –
limitations of HBR case
Financial
Statements
8 Quiz; Revision Results of
& Discussion Quiz by
on Module 2 end of day.
9 Ratios – HBR articles
importance &
usage
10 Significance & Atrill & HBR articles
limitations of McLaney
ratios
11 Practice &
revision - ratio
12 Quiz; Working Results of
capital Quiz by
introduction end of day.
 13 Working
Capital –
Inventory,
receivables &
payables
14 Operating & Dell - HBR
Cash cycles case
15 Quiz; CVP Results of
analysis Quiz by
introduction end of day.
16 Fixed &
Variable Costs;
Introduction
to Break-even
analysis &
Marginal
costing
17 Case-study
discussion on
Break-even
analysis &
Marginal
Costing.
18 Quiz-CVP; Results of
introduction Quiz by
to Budgeting end of day
19 Budgeting Extempore
decisions case
20 Cash Budget &
Cash Flows
21 Case study Extempore
discussion on case
Budgeting
22 Quiz- Results of
Budgeting + Quiz by
Revision end of day
23 Revision

Pedagogy: Class lectures on course topics with practical examples, Case Studies and
illustrations wherever necessary, Presentation and Quiz.

Text: Atrill, P., & McLaney, E.,(2012) Accounting and Finance for Non-Specialists (with
MyAccountingLab), (8th ed), Financial Times/Prentice Hall, ISBN-10: 0273778161
| ISBN-13: 978-0273778165
References: Davies, T., & Crawford, I., (2011), Business Accounting and Finance, (1st ed),
Financial Times/ Prentice Hall ISBN-10: 027372312X | ISBN-13: 978-0273723127

McLaney, E., & Atrill, P., (2012), Accounting: An Introduction (with

MyAccountingLab), (6th ed), Financial Times, Prentice Hall ISBN-10: 0273771949
| ISBN-13: 978-0273771944

Weetman, P.,(2013), Financial and Management Accounting: An Introduction

(with MyAccountingLab), (6th ed), Financial Times/Prentice Hall, ISBN-10:
027378952X | ISBN-13: 978-0273789529

Accounting Text Book by Tapas K Sinha - Pitambar Publication or any other

standard Class 12 Accounting / Book-keeping Text Book.

Evaluation: Mid semester course work (50%): 5 cases (1 on each module) for 30 minute
duration each to be administered separately.

End semester Exam for 2hrs 30minutes for 100 marks (50% weightage)