Unit 1
Management Accounting: Meaning – definition – Advantages – disadvantages – Functions –Scope – Role of Management Accounting in Management Process – Relationship between Management Accounting and Cost Accounting – Recent Trends in Management Reporting.
Unit 2
Marginal Costing – Features – Advantages – Disadvantages -Determination of Cost and Profit Under Marginal Costing – Contribution – Profit/Volume Ratio – Marginal Cost Statement – Break Even Analysis – Angle of Incidence -Margin of Safety – Cash Break Even Point – Composite Break Even Point – Cost-Volume Profit Analysis (CVP Analysis) – Assumptions.
Unit 3
Ratio analysis – meaning – Use and Significance of Ratio analysis – limitations – Classification of Ratios – Liquidity Ratios – solvency ratios – Activity Ratios – Profitability ratios – Market test ratios.
Unit 4
Fund flow statement – meaning– importance – Difference between funds flow statement, balance sheet and income statement– Statement of changes in working capital– Fund from operation – preparation of fund flow statement – limitations – Cash flow statement – meaning – uses – cash from operation – preparation of cash flow statement
Unit 5
Budget and Budgetary Control – Advantages of Budgetary Control – Objectives – Limitations of Budgetary Control – Functional budgets – Sales Budget – Production Budget – Materials Budget – Purchase Budget – Cash Budget – Preparation of Cash Budget – Flexible Budget – Preparation of flexible budget – Difference between Fixed and Flexible Budgets – Zero-based Budgeting.