Course

Unit 1

Nature and scope of Cost Accounting: Costing – Introduction, Objectives, Advantages and limitations of financial Accounting. Nature and scope of Management Accounting: Meaning, Objectives, Difference between Cost and Management Accounting, Techniques of Management Accounting, Scope, Limitations. Cost-Analysis, Concepts and classifications: Cost, Cost classification, Cost center, Cost unit, Cost sheet.

Unit 2

Analysis of Financial statements: Meaning of analysis and interpretation, Objectives, Types and techniques of analysis, Interpretation.
Ratio analysis: Liquidity, Profitability, turnover and solvency ratios, Market test ratios, Intra and Inter firm comparison ratios, leverage ratios, Practical problems.

Unit 3

Marginal Costing and Cost Volume Profit analysis: Marginal Costing, Fixed and Variable cost, BEP analysis, CVP analysis, and Contribution margin.
Decision making applying Marginal costing techniques: Fixation of selling price, Key factor, Make or buy decisions, Selection of suitable product mix, Effect of change in price, Maintaining a desired level of profit, Alternative production methods, Diversification of products, Purchase/Lease.

Unit 4

Fund flow statement: Meaning, Objectives, Preparation, Practical problems.
Cash flow statement: Meaning, Objectives, scope, usefulness, limitations, Classification of cash flows, Preparation and presentation of cash flow statement, difference between cash flow and fund flow statement.
Budget and Budgetary control: Meaning, Types of budgets, Functional budget and flexible budget, Practical problems.

Unit 5

Standard costing and variance analysis: Definition, Setting of standards, Variance analysis, Material price variance, Usage variance, Labour rate variance, Efficiency variance, Overhead expenditure, Volume, Capacity and efficiency variance, Advantages and disadvantages of Standard costing.

Course Objective:
Accounting is one of the important tools of modern managers providing quantitative information, primarily of financial nature, necessary for making vital economic decisions. In the developing economy like ours, the importance of Cost and Management accounting has been acknowledged by all especially when optimum utilization of resources is the crying need of the day. As a result, the knowledge of Cost and Management Accounting to the commerce students has become absolute necessity. In view of this, this subject is included in the syllabus.

Course Outcomes:

Textbooks:

1. K. M. Vineeth, K. R. Shabu – Accounting for Managerial Decisions – Kalyani Publishers.
2. S. P. Jain, K. L. Narang – Cost and Management Accounting – Kalyani Publishers.

Reference Books:

1. S. N. Maheswari, S. K. Maheswari – Accounting for Management – Vikas Publishing House
2. S. K. Bhattacharyya, John Dearden – Accounting for Management – Vikas Publishing House
3. Jawahar Lal – Advanced Management Accounting – S. Chand Publishers