Tribhuvan University

Faculty of Management
Office of the Dean

Course details of
MBS (Master of Business Studies) 2nd Semester

ACC 517: Management Accountancy 3 Cr. hrs

FIN 510: Financial Management 3 Cr. hrs
MGT 513: Human Resource Management 3 Cr. hrs
MGT 518: Business Environment in Nepal 3 Cr. hrs
MSC 516: Production and Operations Management 3 Cr. hrs

Effective from 2018 Admission Batch

 ACC 517: Management Accountancy
Credits: 3
Lecture Hours: 48

Course objectives
The objectives of this course are to provide extensive knowledge of managerial accounting tools and
techniques required for strategic planning and controlling processes.

Course description
This course aims to provide exposure on managerial planning and control. It helps to analyze managerial
accounting information for control. It covers cost management, income under marginal and absorption costing,
cost volume profit analysis, profit planning and performance control. It also deals with technical and
behavioral aspects of management accounting and control system.

Teaching Methodology and Pedagogy

• Lecture
• Assignments
• Discussion & Presentation
• Project & case work
• Library & Internet

Marking Scheme
Internal
- Assignment
- Presentation
- Project work
- Mid Term Exam
- Pre Board Exam
External
- Board Exam

Course Details

Unit 1: Concept of Management Accounting LH 3

- Concept, objectives, characteristics, functions and limitations of management accounting
- Changing role of management accounting in an organization
- Controllership functions and responsibility

Unit 2: Cost Management and Reporting LH 8

- Concept, classification and allocation of costs
- Segregation of mixed cost: graphical presentation, two point method, regression method,
Co-efficient of determination, standard error of estimates, standard error of regression coefficient,
confidence interval and student “t” test
- Reporting and interpretation of net income under different situations for internal and external use
- Reconciliation of net income
Unit 3: Cost-Volume-Profit-Analysis LH 8
- Concept, objectives, assumptions, limitations of cost-volume-profit-analysis
 - Application of cost-volume-profit for breakeven analysis and profit planning including multiple
products with interpretation
- CVP analysis under the condition of uncertainty
- Cost-volume-profit analysis under resource constraints
- Allocation of single resource constraint
- Allocation of multiple resource constraints using linear programming model
Unit 4: Activity Based Costing LH 5
- Concepts, need, objectives and limitations of ABC
- Limitations of traditional costing system
- Procedures of absorption of overhead under ABC
- Ascertainment of costs and profit under Traditional and ABC method
- Activity based profitability analysis
- Activity Based Management
Unit 5: Profit Planning LH 11
- Concepts, need, importance and objectives of budgeting
- Budgeting for profit planning: preparation of master budgets for manufacturing and non-
manufacturing firms
- Zero-base budgeting
Unit 6: Controlling of Performance LH8
- Concept of standard cost and standard costing
- Difference between standard cost and estimated cost
- Preliminaries to establishment of standard costing
- Objectives, importance and limitations of standard costing
- Standard costing and budgetary control
- Computation and interpretation: Material, Labour and Revenue (based on turnover) variances
- Flexible budgets: concept, features and significance. Difference between flexible and static budget
- Overhead cost control: variable and fixed overhead variances and interpretation

Unit 7: Management Accounting and Control System LH 5

- Concept of technical considerations of management accounting and control system: The value
chain; Total life cycle costing; Target costing; Kaizen Costing; and Benchmarking
- Concept of behavioral considerations of management accounting and control system
- Concept, needs and objectives of Social Accounting, Balanced Scorecard, Forensic Accounting,
Environment Accounting and Green Accounting

Basic Books:
Atkinson, A. A., Kaplan, R. S., Matsumura, E.M., Young, S.M & Kumar, G. A. (2012). Management
Accounting/6e. New Delhi: Pearson Education Pvt. Ltd.

Garrison, R. H., Noreen, E. H., & Brewer, P. C. (2012). Managerial Accounting. New Delhi: Tata Mc Graw
Hill Education Pvt. Ltd.

Hilton, R. W., Ramesh, G., & Madugula, J. (2011). Managerial Accounting. New Delhi: Tata Mc Graw Hill
Education Pvt. Ltd.
 FIN 510: Financial Management
Credits: 3
Lecture Hours: 48
Course Objective
This course aims to enable students to appreciate the significance of concepts, theories and practice of
financial decision making in firms and to make them acquainted with analytical and problem solving skills
for making investment, financing and dividend decision along with managing working capital.

Course Description
The course covers core area of financial management – investment, financing and dividend decisions and
their peripherals. They are organized in eight units. The major topics covered in this course are: financial
management and environment, financial statements analysis, security and corporate valuation, risk-return
and the portfolio theory, capital structure and cost of capital, investment decision, dividend decision, and
working capital management.

Course Details
Unit 1: Financial Management and Environment LH 5
Financial Management: Functions and Concept, Objectives of Corporation: Value
Maximization, Value Maximization and Social Welfare, Managerial Action to Maximize
Shareholder Wealth; Role of Financial Manager; Agency Conflicts: Conflict between
Stockholders and Creditors, Conflict between Insider Owner/Managers and Outside Owners,
Conflict between Managers and Shareholders; Corporate Governance, Business Ethics and
Corporate Social Responsibility; Financial Environment in Nepal: Financial Securities,
Financial Institutions, Financial Market; Tax Environment.
Unit 2: Financial Statement Analysis LH 5
Financial Statements and Reports; Financial Ratio Analysis: Liquidity Ratios, Asset
Management Ratios, Debt Management Ratios, Profitability Ratios, Market Value Ratios;
Trend Analysis; Common Size Analysis; Percentage Change Analysis; The Du-Pont Equation;
Comparative Ratio and Benchmarking; Uses and Limitations of Ratio Analysis.
Unit 3: Security and Corporate Valuation LH 6
Time Value of Money and Financial Asset Valuation: Discounting and Compounding of
Different Cash Flow Streams; Valuation of Bonds; Required Return and Bond Values; Changes
in Bond Values Over Time; Bond Yields; The Basic Stock Valuation Models: Zero Growth
Model, Normal Growth Model, Supernormal Growth Model, Single Period and Multi-period
Valuation Model; Market Multiples and Stock Valuation; Valuation of Entire Corporation.
Unit 4: Risk-Return and Portfolio Theory LH 6
Investment Returns and Risk; Risk in a Portfolio Context; Efficient Portfolio; The Optimal
Portfolio; Capital Assets Pricing Model (CAPM); The Capital Market Line (CML) and Security
Market Line (SML); The Efficient Market Hypothesis and Behavioral Finance.
Unit 5: Capital Structure and Cost of Capital LH 6
An Overview of Capital Structure: Business Risk and Financial Risk; The Optimal Capital
Structure; Component Cost of Capital; Weighted Average Cost of Capital (WACC); Marginal
Cost of Capital (MCC) and Breaks in MCC Schedule.
Unit 6: Investment Decision LH 8
An Overview of Capital Budgeting; Estimating Cash Flows; Evaluating Cash Flows: Payback
Period, Discounted Payback Period, Net Present Value, Internal Rate of Return, Profitability
Index, Modified Internal Rate of Return; Projects with Unequal Lives; NPV Profiles and
Crossover Rate.
Unit 7: Dividend Decision LH 6
Procedural Aspects of Paying Dividends; Dividend Distribution Model: Residual vs Stable;
Cash Distributions and Firm Value; Clientele Effect; Signaling; Stock Dividends and Stock
Splits; Stock Repurchase; Managerial Considerations as to Share Repurchase Policy; Dividend
Payment Practices in Nepal.
Unit 8: Working Capital Management LH 6
An Overview of Working Capital Management; Financing Current Assets; The Cash Conversion
Cycle; Cash Management; Inventory Management; Receivable Management.

References
Bigham, E. F& Ehrhardt, M. C. Financial Management: Theory and Practice. New Delhi: Cengage
Learning.
Van Horne, J. C. Financial Management and Policy. New Delhi: Pearson Education.
Ross, S. A., Westerfield, R. W., & Jordan, B. D. Corporate Finance. New Delhi: Tata McGraw-Hill.
Gitman, L. J. Principles of Managerial Finance. Delhi: Pearson Education.
Pradhan R. S. Financial Management. Kathmandu: Buddha Academic Publishers and Distributors.
Paudel, R. B., Baral K. J., Gautam R. R., & Rana S. B. Financial Management. Kathmandu: Asmita Books
Publishers and Distributors.
Sharma, D. R., Thapa, K., Risal, N. & Pathak, D. D. Financial Management. Kathmandu: Khanal Publication
Pvt. Ltd.
 MGT 513: Human Resource Management (HRM)
Credit: 3
Lecture Hours: 48
Course Objectives
The main objective of this course is to familiarize students with the concepts and practices of
human resource management. This course provides an overview of the HRM. This course is
designed to provide students with specific knowledge, skills, and abilities associated with human
resource management so that they are actually prepared to perform the essential functions that
human resource professionals are expected to perform.

Course Description
This course contains an overview of HRM, analysis and design of job, human resource planning,
recruitment, selection and socialization, human resource development and training, career
planning, performance evaluation and compensation management, labour relations and collective
bargaining, recent trends in human resource management.

Course Details Unit 1: An Overview of Human Resource Management LH 6

Concept, Developments in HRM Concepts, HRM environment, Ethics in HRM, Strategic
HRM, The roles of the HRM functions in strategy formulation, Dimensions of International
human resource management, globalization and HR policy, Human resource management
in Nepal.

Unit 2: Human Resource: Strategic Planning LH 5

Concept, HRP process, Strategic planning and HR planning, Need of human resource
planning, Human resource information system, Techniques of forecasting HR demand and
supply, Strategic directions in human resource planning, HRP practices in Nepalese
organizations.

Unit 3: Job Analysis and Design LH 5

Concept of job design, Impact of job design on motivation, satisfaction, productivity and
quality of work life, Concept of job analysis, Importance of job analysis in human resource
management, Job analysis techniques, Writing job descriptions and specification.

Unit 4: Recruitment, Selection and Socialization LH 5

Concept, Methods and sources of recruitment, Recruitment process, Concept of employee
selection, Process of selection, The Selection interview, Selection tests, Concept and
process of socialization, Recruitment and selection practices in Nepal.

1
Unit 5: Human Resource Development LH 6
Concept of human resource development (HRD) and training, Need for HRD, Training
needs analysis (TNA), On-the-Job and Off-the-Job training and development techniques,
Evaluation of training, Practices of training in Nepalese organizations.

Unit 6: Employee Career Planning and Mentoring LH4

Concept and Objectives of career planning, Stages of career development and planning,
Need of career planning, Individual career counseling and mentoring, Importance of
mentoring in work place, Career planning in Nepalese organizations.

Unit 7: Performance and Compensation Management LH 6

Concept and issues in performance management, Criteria of performance management,
Performance evaluation approaches, Problems of performance evaluation, Compensation
management, Considerations for Determining Compensation, The Legal Environment and
Pay System Governance in Nepal.

Unit 8: Labour Relations and Collective Bargaining LH 5

Concept, Actors and process of labour relations, Unionism, Reasons for joining unions,
Issues in collective bargaining, Labour disputes and grievances procedures, Legal
environment in labour relations in Nepal, Contemporary issues in labour relations in Nepal.

Unit 9: Recent Trends in Human Resource Management LH 6

Hard and soft approaches to HRM, Cross cultural training, Managing diversity, Talent
management, Competency mapping, Outsourcing of HR professionals, Downsizing and
layoffs, emergence of work and family issues, Flexi time, Healthy workplace, Impact of
technology.

Reference Books:
Armstrong, M.,(2015). A Handbook of Human Resource Management, New Delhi: Aditya.
Adhikari, D.R.,(2015) .Human Resource Management, Buddha Publication.
Books. Armstrong, M., (2015). A Handbook of Human Resource Management, Aditya Books
Bernardin J.H., (2014).Human Resource Management: An Experiential Approach,
McGrawHill.Cascio, W., (2015).Managing Human Resources, McGraw-Hill. Decenzo,
D.A.,(2014). Fundamentals of HRM, Wiley.
Dessler, G. and Varkkey, B,(2016). Human Resource Management, Pearson.

Geprge W. Bohlander,(2016). Principles of Human Resource Management, Cenage Learning

India Private Limited

2
 MGT 518: Business Environment
Credits: 3
Lecture Hours: 48
Course Objectives
The course aims to provide the students with the knowledge of different facets of external
business environment that are necessary for the survival of a business firm in the
contemporary business world. It also aims to develop capacity and skills in the students of
analyzing, synthesizing and evaluating these facets and applying them in the formulation
of business and strategies. This course examines the relationship between business
organizations and their functional areas.

Course Description
The main topics covered in the course are: the business-environment interaction, analysis of the
economic, political, social, cultural, legal, and technological environments and their effects on
international business; trade policy instruments and implications for business; economic policies
and reforms, corporate social responsibility; globalization and regional economic integration,
multinational corporations; major drivers behind, and barriers to, foreign direct investment; impact
of international institutions and organizations like WTO on Nepalese business. The purpose is to
develop a solid understanding of the external, economy-wide factors that affect the performance
and management of Nepalese business firms.

Course Details Unit 1: Introduction LH 3

Concept, relationship between business system and its environment, Importance and
components of business environment, Process and techniques of environmental analysis,
Business environment analysis for strategic management, Recent trends and emerging
business environment in Nepal.

Unit 2: Economic Environment LH 16

An overview of the Nepalese economy: Economic structure and dimensions; Economic
indices - National income; Rate and growth of GNP, per capita; Poverty situation;
Distribution of income; Nepal's foreign trade - structure and related issues; Labour market
issues; Foreign employment - trends and issues.
Economic planning: An overview of five year /three year plans of Nepal; Current Plan its
objectives, targets and strategies applicable to business and industrial sectors; Millennium
Development Goals – parameters and progress in Nepal.
Nepalese economic policies and reforms: Industrial Policy- concept and objectives; Trade
Policy - concept and objectives; Tourism Policy - objectives and characteristics;
Current monetary policy; Economic policy reforms;
Agriculture and industrial sectors: Features and issues in Nepalese agricultural sector; Nepal's
industrial sector – structure, performance and constraints.

Unit 3: Political Environment LH4

Political system, its nature and significance for business; Political structure;
Political parties, Government’s role in business; Political stability issue; Impact of
 political environment on Nepalese business structure. Interrelationships between
politics, government and business.
Unit 4: Regulatory Environment LH 7
Constitutional framework; Directive principles; Fundamental rights; Main features and
provisions of business related legislation and policies in Nepal. Business legislation in
Nepal - Companies Act, 2006; Finance and investment legislation - Foreign Investment
and Technology Transfer Act, 1992; Income Tax Act, 2002; Industrial Enterprise Act,
1992; Securities Act, 2063; Labor Act, 1992; Trade Union Act, 1992; Mines and Minerals
Act, 1985; Patent Design and Trade Mark Act, 1965; Copyright Act, 2002; Foreign
employment Act,2007.

Unit 5: Socio-Cultural Environment LH 4

Concept and components of socio-cultural environment; Impact of socio-cultural
environment to business, Analysis of components of Nepalese socio-cultural environment:
attitudes, values and beliefs, religion, language, education, social institutions, class
structure and business culture. Emerging socio-cultural changes in Nepal.

Unit 6: Social Responsibility of Business LH 3

Social responsibility of business: Concept, approaches and areas. Corporate accountability, Social
audit: Concept, models and procedures, consumerism.

Unit 7: Global Environment LH 7

Globalization - concepts and forms; Regional economic integration; A brief overview of
the regional economic groupings such as NAFTA, APEC, ASEAN, SAARC, SAFTA and
BIMSTEC; Economic reforms in South Asia; World Trade Organization (WTO) –
Objectives, structure, principles, agreements and most favoured nation treatment; Benefits
of the WTO trading system; Nepal's membership and commitments opportunities and
threats for Nepalese business, Recent trends and development in global environment.

Unit 8: Environment, Energy and Technology LH 4

Environment and energy management: Natural environment and pollution issues; Environment
protection legislation and programs; Demand and supply of energy;
Environment and energy management issues. Science and Technology Policy; IT Policy;
Electronic Transactions Act, 2007; Status of technology in Nepalese businesses;
Technology and human factors; Issues related to management of technology.

References
Pant, Prem R. Business Environment in Nepal. Buddha Academic Publishers and Distributors,
Kathmandu.
Agrawal, G. R. Dynamics of Nepalese Business Environment. M. K. Publishers, Kathmandu.

Aswathappa, K. Business Environment for Strategic Management, Himalaya Publishing House,

Bombay.
Cherunilam, F. Business Environment. Himalaya Publishing House, Bombay. Relevant
laws, literature and cases.
 MSC 516: Production and Operations Management
Credits: 3
Lecture Hours: 48

Course Objectives
This course aims to impart knowledge and skills of production and operations management to students so
that they can relate the theoretical aspects with real world operations.

Course Description
The course contains basic concepts and introduction, production planning and scheduling, materials
management, managing for quality and optimization techniques

Course details:
Unit1: Basic Concepts and Introduction LH 6
Concept, Transformation model, manufacturing versus Service operations, Historical
Development of Operations Management, Types of production system, operations strategy, global
view of operations, achieving competitive advantage though operations, concept and types of
Productivity

Unit 2: Production planning and scheduling LH 14

Product development: Operational issues in product life cycle; product development process,
Quality function deployment, value engineering,
Manufacturing process and service process, Capacity planning decisions, aggregate planning
strategies, location planning: strategic importance of location, Factors affecting location decisions,
methods of evaluating location alternatives, layout strategies: strategic importance of layout
decisions, Types of layout, Designing product layout: Assembly line balance
Overview of the operations planning and scheduling system, loading, priority sequencing, forward
scheduling and backward scheduling, expediting, optimized production technology

Unit 3: Materials Management LH 8

Objectives and importance of material management, procurement activities, Material Handling,
warehousing, Inventory management, Inventory costs, Inventory control system, Material
Requirement Planning (MRP), ABC Inventory planning system,

Unit 4: Managing for Quality LH 6

Introduction, definitions of quality, concepts of Total quality management, Quality management
system,7 tools for the quality journey, Quality costs, Six-Sigma, Statistical process control, control
charts for variables and attributes, acceptance sampling, process capability

Unit 5: Optimization Techniques LH 14

Linear programming: Introduction to Linear programming problem, general statement of linear
programming problem, Formulation of linear programming problem, Assumptions underlying
linear programming, some special cases in linear programming, Simplex method, Solution to
maximization problems, solution to minimization problems, Big-M method, Duality in linear
programming problem, Economic interpretation of duality, concept on sensitivity analysis
Transportation problem: Vogel’s Approximation method (VAM) for generating initial basic
feasible solution, Testing Optimality condition, Balanced and unbalanced transportation problem,
closed path formation, Maximization problem
 Assignment problem: Introduction, solution of Minimization and maximization of assignment
problem by Hungarian Method, balanced and unbalanced assignment problem.
Suggested Readings
1. Stevenson, W.(2012). Operations Management.11th ed. New Delhi: Tata McGraw-Hill.
2. Vohra N.D., (2004). Quantitative Techniques in Management. New Delhi: Tata McGraw-
Hill.
3. Hillier F.S.,Liberman G.J. (2005). Introduction to Operations Research: Concepts and cases.
New Delhi: Tata McGraw-Hill.
4. Adam, E and Ebert R. (2007). Production and operations management Concepts, Models and
Behaviour.5th ed. New Delhi: Prentice -Hall of India Private Limited.
5. Krajewski L, Ritzman L., Malhotra, M.(2007): Operations Management Process and Value
Chains.8 ed. New Delhi: Prentice Hall.
6. Chase Richard B., Aquilano Nicholas J and Jacobs F. Robart (1999): Production and
Operations Management: Manufacturing and Services, 8th edition, Tata McGraw Hill
Publishing Company, New Delhi
7. Sthapit , A. B, Yadav R. P, Tamang G. , Dhital S. and Adhikari P. (2015). Production and
Operations Management. Kathmandu: Asmita Books Publishers and Distributors (P) Ltd.
8. Shrestha S. and Silwal D. (2057). Production and Operations Management. Kathmandu: Taleju
Prakashan
9. Regmi L., Joshi P.R. ,Chaudhary A.K., & Fago G, . (2012). Production and operations
management. Kathmandu: Buddha Publication