Course Catalogue

           Module                        : ACT 307: Management Accounting

          Programme                  : B.Com

Credit Value              : 12

Prerequisite               : None

 

General Objectives:

·               To familiarize the students with the mechanisms that is followed for taking informed strategic decisions by the management

·               To impart  and familiarize different aspects of accounting principles and concepts to use costing data focusing primarily on decision making ( planning and control) in various functional areas of a business enterprise

 

Learning Outcomes:

Upon successful completion of this module, student should be able to:

·               apply basic decision making tools and to analyze cost effectiveness in the use of resources adding values to an organization

·               apply other non financial information for making strategic decisions

·                evaluate alternative accounting solutions for effective managerial decisions in different market situations

·               prepare different types of budgets

 

CONTENT

Unit-I: Introduction to Management Accounting                                                        (6 Hours)

 

Accounting information systems and users of accounting information, General purpose financial  statements and special purpose financial statements, Management accounting – meaning features and objectives, difference between FA and MA, role of management accountants, limitations of Management Accounting. 

                 

Unit-II: Cost –Volume - Profit Analysis                                                                      (25 Hours)

 

Break even analysis- assumptions, contributions and marginal cost equation, P/V ratio, Margin of safety, key factor, angle of incidence, BEP chart, P/V chart, uses and limitations of BEP

Costs for decision making  -  variable cost and differential costs analysis as aids in making decision – fixation of selling price, exploring new market, make or buy, product mix, operate or shut down, sell or process further  

 

Unit-III: Standard costing and Variance Analysis                                                      (12 Hours)

 

Introduction, variances for each element of cost, material variances, labour variances, overhead variances, fixed overhead variances, sales variances, reporting of variances, disposition of variances 


Unit-IV: Budgetary control                                                                                          (12 Hours)

 

Introduction, meaning and definition of budget and budgetary control, objectives of budget, budget administration, functional budget, master budget, fixed and flexible budgeting, zero base budgeting

 

Unit-V: Introduction to Management control system and Responsibility accounting

Management control systems; Management control and organizational goals; Designing management control systems; Management control system in service, government and non- profit organization; Future of Management control systems.                       (5 Hours)

 

Teaching strategies

·                                 Lecture method

·                                 Short Case study

·                                 Inquiry and Cooperative methods

·                                 Class Interactions and presentations

 

Assessment

·                                 Assignments/Project work /Presentation        20 %

·                                 Mid-Semester Exam                                       30 %

·                                 End - Semester Exam                                     50 %

                                                                        Total 100%

 

Essential Texts          

1.                  Arora, M.N., Management Accounting: Theory, Problems and Solutions (2008), Himalaya Publishing House, Delhi.

2.                  Horngren, C.T., Datar, S.M , Foster, G, Rajan, M, Ittner, C,  Cost  Accounting- A Managerial Emphasis  (13th Ed), 2009, Pearson Education, New Delhi, INDIA

 

References

1.                  Mittal, S.N and Masheshwari, S.N., Management Accounting – Principles and Practices, 1st ed. (2007), Mahavir Publication, Delhi.

2.         Ronald, W.H., Managerial accounting: Creating Value in a Dynamic 

            Business Environment (2005), Tata Mc Graw – Hill Publishing Company Limited, New Delhi, INDIA.

3.         Horngren, Sundem, Stratton, Burgstahler, Schatzberg., Introduction to Management Accounting (14th Ed) 2009, Pearson Education, New Delhi, INDIA