INDIAN INSTITUTE OF MANAGEMENT JAMMU
Master of Business Administration
Healthcare Management Accounting
Term: III
Course Code:
Credits: 1.5 (10 Session)
Course Rationale:
The types of decisions made by managers rely substantially on accounting information. The
information provided by Financial Accounting does not contain enough detail for internal
users. Cost and Management Accounting information is primarily used for planning and
controlling purposes and help managers in internal decision making. This course delves into
issues such as: “How are full cost measured and what it is used for?”; “What are the different
methods of allocating indirect costs?” and finally “How to choose among the alternative
course of action based on differential costs and revenues?”
Course Objectives:
1. To provide conceptual understanding of Cost and Management Accounting principles and
practices relevant for business analysis and decision making.
2. To develop the ability to understand, analyze and use cost information in day-to-day
business functioning.
3. To explain the role of relevant costs in decision making and developing better strategies.
4. To discuss contemporary issues in Cost and Management Accounting and their practical
applications.
Learning Outcomes:
After completion of this course, participants should be able to;
1. Understand the principles of various Costing methods viz., Traditional Costing Method,
Activity Based Costing (ABC) Method.
2. Use the relevant cost in decision-making.
3. Apply Cost-Volume-Profit Analysis in business decision making.
4. Analyze Price and Cost Variances and use budgetary control techniques to perform
managerial functions.
Prerequisite(s):
Conceptual understanding of Financial Accounting.
Pedagogy:
A mix of pedagogy would be adopted. Conceptual inputs will be given through the short
lectures and case method of teaching will be used for providing real life application of
concepts.
Textbook:

Cost Accounting: A Managerial Emphasis, 16e, Charles T. Horngren, Shrikant M. Datar,
Madhav V. Rajan (H-D-R), Pearson India Education Services Pvt. Ltd., 2017
Reference Books:




Managerial Accounting, 10e, Ronald W. Hilton, David E. Platt, McGraw Hill Education,
2014
Managerial Accounting, 4e, James Jiambalvo, Wiley, 2015
Management Control System, 12e, Robert, N. Anthony & Vijay Govindarajan, McGraw
Hill Education, 2007
Cases in Cost Management: A Strategic Emphasis, 3e, John K. Shank, Cengage India,
2006
Journals:



Management Accounting Research
Journal of Management Accounting Research
The Management Accountant
Links to websites:
 http://icmai.in
 https://www.cimaglobal.com
Evaluation Scheme:




Quizzes/ Internal Class Tests
Class Participation/ Course Project
Mid Term Exam
Term-End Exam
Total
20-30%
20-30%
NA
40-50%%
100%
Session Plan:
Sessi
on
Topic (including
subtopics)
Learning Outcomes
1-2
Introduction to
Cost and
Management
Accounting



Pedagogical Tool
Understanding of Class Discussion
Cost Accounting
(Session 1-2)
terms
Cost behaviour
Concepts and
traditional Costing
Methods.
Textbook
Chapters &
Readings
Textbook
Chapter 1-2
3-6
7-8
Cost
Ascertainment
under Activity
Based Costing
Service sector and
Manufacturing set
up
Cost-VolumeProfit Analysis and
Break-Even
Analysis
Knowledge of
Activity Based
Costing in
Manufacturing and
Service Industry



9-10
Master Budget,
Operating and
Financial Budgets
Flexible Budget
and Variances
Application of
Cost-Volume
Profit Analysis in
decision making
Marginal Costing
Knowledge of
budgetary control
system and its use in
managerial decision
making.
Case:
Textbook
 Classic Pen Co.: Chapter 5
Developing an
ABC Model
#198117-PDFENG
Published 1998
Revised 1998
HBS
 Dakota Office
Products
# 102021-PDFENG
Published 2001
Revised 2005
HBS
(Session 3-6)
Case:
 Hallstead
Jewelers
107060-PDFENG
HBS
(Session 7-8)
Class Discussion
(Session 9-10)
Textbook
Chapter 3
Textbook
Chapter 6-8, 14