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