Course

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.

Course Objective:

The objective of the course is to acquaint the students with an understanding of the applications of various tools and techniques of management accounting.

Course Outcomes:

The student will be able:

CO1: To understand the basic concepts of management accounting and its role in the management process, as well as the relationship between management accounting and cost accounting.

CO2: To understand the concept of marginal costing and apply marginal costing techniques to prepare marginal cost statements and perform cost-volume-profit analysis.

CO3: To understand the classification of ratios and their use in evaluating financial performance and apply ratio analysis techniques to analyse financial statements and make informed business decisions.

CO4: To understand the fund flow statement and cash flow statement and apply the same for decision-making.

CO5: To understand different types of budgeting techniques and apply the same for budgetary control.

Textbooks:

1. S.N. Pillai and Bagavathi – Management Accounting – S. Chand
2. Jain and Narang – Cost and Management Accounting – Kalyani Publishers

References:

1. N. Maheswary – Principles of Management Accounting – Sultan Chand
2. Murthy and Gurusamy – Management Accounting – McGraw Hill