Tribhuvan University

BBA Fourth Semester Syllabus TU

The above mentioned subjects are the list of subjects that are taught in the Fourth semester of BBA affiliated to Tribhuvan University .

Cost and Management Accounting ACC 202

Credits: 3 Lecture Hours: 48
Course Objectives

The primary objective of the module is to provide students with an understanding of the concepts, tools and techniques of cost and management accounting and their application in managerial decision making.

Course Description

This course comprises conceptual foundation of cost and management accounting, segregation of cost, accounting for material and labour, allocation apportionment and absorption of overhead cost, income statement under variable and absorption costing technique, standard costing system with material and labour cost variance, flexible budgeting under different levels of activities, overhead cost variance, preparation of functional and financial budget in a manufacturing/non-manufacturing concern, decision regarding alternative choices.

Unit 1: Conceptual Foundation LH 4 

Cost & management accounting: Meaning, objectives, importance, advantages and limitations, differences between financial accounting and cost accounting, management accounting and cost accounting.  Cost concept and its classification.  Concept and method of cost segregation: i) Two point method and ii) Least square method & iii) Estimation of cost

Unit 2: Accounting for Materials LH 3 

Materials/Inventory: Concept, reasons and objectives for holding material / inventory.  Inventory Control: Meaning, importance and techniques, Economic order quantity with and without discount, Re-order, maximum, minimum, danger and average stock levels under the condition of certainty.

Unit 3: Accounting for Labour Cost LH 3 

Labour cost: Concept and need for control of labour cost.  Incentive wages Plan: Halsey and Rowan premium Plan, Taylor’s differential piece rate system, Gantt’s Task and Bonus plan.

Unit 4: Accounting for Overhead Cost: LH 4

Overhead cost: Meaning, classification, importance  Accounting and Distribution of overhead cost: Allocation, apportionment and absorption of overhead cost.

Unit 5: Accounting for Profit Planning LH 8

Absorption costing: Concept, importance, income statement under absorption costing technique, limitations.  Variable costing: Concept, importance, income statement under variable costing technique, reconciliation statement between absorption and variable costing techniques showing the causes of difference.  Cost Volume profit analysis: Meaning, importance, Contribution margin analysis, Break-evenanalysis: under constant and the following underlying situations: changes on selling price, fixed cost, & variable cost, and under step fixed cost, Break-even-analysis of multi-products firms, assumptions of CVP analysis and its limitations.

Unit 6: Standard costing LH 4

Standard costing: Concept, preliminaries to establish standard costing system, difference between standard costing and budgetary control, advantages and limitations.Variance analysis: Material variance: Concept and calculation of cost, price, usage, mix and yield variances. Labour variance: Concept and calculation of cost, efficiency, rate, mix, idle time and yield variances.

Unit 7: Flexible budgeting LH 4

Flexible budgeting: Limitations of static budget, concept, importance of flexible budget, flexible budgeting for overhead cost control, flexible budget in different level of activity.  Overhead cost variance: Concept and calculation of capacity, efficiency and spending variances.

Unit 8: Budgeting and Profit Planning LH 12

Concept and objectives of budget.  Preparation of budget for manufacturing and non-manufacturing concern: sales budget, production budget, purchase budget, direct labour and overhead cost budget.  Cash collection and disbursement budget, budgeted income statement, budgeted balance sheet.

Unit 9: Accounting for Alternative Choices for Decision Making LH 6

Concept of decision making, types of decision making: Make of buy decision, Drop or continue decision, Accept or reject special offer, decision to sell or further processing.

Suggested Books

Ronald W. Hilton, and David E. Platt Managerial Accounting, MCgraw Hill, Irwin. Charles T. Horngren, Srikant M. Datar and George foster, Cost Accounting , A managerial Emphasis, Pearson Education Colin Drury, Management and Cost Accounting, ELBS with Chapman and HallJerry J. Weygandt, Jawahar Lal, Cost Accounting, Tata McGraw Hill Co., New Delhi T. Lucy, Cost Accounting, Tata McGraw Hill Co., New Delhi. M.R. Koirala, and et.al, Cost and Management Accounting, Buddha Academy Publication House, Kathmandu. Yamesh man Singh, Khagendra P. Ojha, Chiranjibi Acharya, Cost and Management Accounting, Buddha Academic Publishers and Distributors Pvt.Ltd. R.M. Dangol and et.al, Cost and Management Accounting, Taleju Publishing House, Kathmandu Koirala, Y.R. and et.al,Cost and Management Accounting,Ashmita Publication, Kathmandu.

Business Law MGT 204

Credit Hours: 3 Lecture Hours: 48
Course Objectives:

This course aims to enhance students understanding of the basic business laws required for effective management of business operations.

Course Description

This course contains Law and business, general law of contract; offer and acceptance, contractual capacity, consideration, consent, legality of objectives and consideration, contingent contract, Quasi Contract, Performance of contract, Termination of Contract, Breach of Contract, Specific Contracts; Contract of Agency, Contract of Sale of Goods, Contract of Carriage, Law of Negotiable Instruments, Law of Company and Insolvency.

Course Details

Unit 1: Introduction to law and Business law LH 

Law: Meaning, Nature and Characteristics Business law: Meaning and Characteristics and Sources of Nepalese Business Law

Unit 2: General Law of Contract LH 25

Law of Contract Meaning and definition of contract, Essential elements of valid contract, Classification of Contract, The law relating to contract in Nepal and features of contract Act, 2056 Offer and Acceptance Meaning and Rules regarding offer, Revocation/ lapse of offer, Meaning and rules regarding acceptance, communication of offer and acceptance Contractual Capacity Meaning of contractual capacity, Legal effects of agreements made with an incompetent party (the minor and the person of unsound mind) Consideration Meaning and Rules regarding consideration, Exceptions to the general rule ‘No consideration no contract’ Free Consent Concept and importance of free consent, Meaning, and legal effects of contract caused by: Coercion, Undue influence, Misrepresentation, Fraud, Mistake Legality of objective and consideration Concept and importance of legality of objective and consideration, Conditions of unlawful agreement and void agreement.

Contingent Contract Meaning and definition of contingent contract, Rule regarding contingent contract Quasi Contract Meaning and definition of quasi contract, Cases of quasi contract. Performance of contract Meaning and nature of performance of contract, who can demand performance of contract? Who should performance the contract? Termination of Contract Meaning of termination of contract, Modes of termination of contract. Breach of Contract Meaning and types of breach of contract, Remedies for breach of contract.

Unit 3: Specific Contracts LH 15

Contract of Agency Meaning and general rules of agency, Modes of creating agency, Types of agent Rights and duties of agent, Responsibility of agent, Personal responsibility of agent, Termination of agency.
Contract of Sale of Goods Meaning and feature of contract of sales of goods, Difference between sales and agreement to sell, implied condition and warranty, and caveat emptor, Transfer of ownership, transfer of title by non- owner, Rights and duties of unpaid seller. Contract of Carriage Meaning and nature of contract of carriage, Characteristics of common carrier, Difference between common and private carrier, Rights, duties and liabilities of common carrier, Carriage by land, Carriage by Sea (contract of Affreightment: charter party and bill of lading), and carriage by air, Inco terms 2010: A brief introduction.

Unit 4: Law of Negotiable Instruments LH 4

Meaning and feature of negotiable instruments, Promissory note, bills of exchange and cheque, Holder and holder in due course, Discharge of negotiable instrument.

Unit 5: Law of Company and Insolvency LH 4

Company: Meaning, Nature and incorporation of company, Insolvency: Meaning and procedure of insolvency of company, Investigation, Re- organization and liquidation of a company, Power and role of the liquidator, Nepalese law of insolvency and feature of insolvency Act, 2003.
Addendum: At least one case will be administered at the end of each chapter. The students will also prepare a project report from public media on legal case of business, and other assignments as specified by faculty member.

Basic books/ References

Albuquerque, Daniel (2013) Legal Aspects of Business (Texts, Jurisprudence and Cases), OxfordUniversity Press, New Delhi, India.  Fitzerald, Ram Prasad, P. J (2012), Salmond on Jurisprudence, Sweet & Maxwell Ltd. U.K.  Shrestha, Ram Prasad, BanijyaKanoon, Mrs. BijayaShrestha, Lagankhel, Lalitpur.  Kalika, Satya Narayan, Business Law for BBA, Buddha Pulication, Kathmandu.  Shukla, M.C.,Mercantile Law,S. Chand & Company Ltd, New Delhi.  Agency Act, 2014, Law Book Mgmt. Committee, Kathmandu.  Companies Act, 2063, Law Book Mgmt. Committee, Kathmandu.  Contract Act, 2056, Law Book Mgmt. Committee, Kathmandu.  Insolvency Act, 2063, Law Book Mgmt. Committee, Kathmandu.

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