2012-2014 (Trimester II) MS 616- Management and Cost Accounting

Instructor S.Panboli
Introduction Management accounting is applied to the provision of accounting information for management activities such as decision making, planning and controlling etc. Thus, any form of accounting which enables a business to be conducted more efficiently can be regarded as management accounting. Cost accounting provides detailed cost information to various levels of management for efficient performance of their functions. The information supplied by cost accounting acts as a management tool for decision-making, to optimize the utilization of scarce resources and ultimately add to the profitability of business by controlling expenditure under various heads. Cost accounting and Management accounting are intimately related areas, so much so that we can say that modern cost accounting can often be called management accounting. Thus managerial aspects of cost accounting are inseparable from management accounting. Objectives More specifically the course would focus on Introduction to Management accounting and Cost accounting Ratio analysis, Fund flow and Cash flow statement Budgetary control Marginal costing and profit planning Recent developments in Management and Cost accounting

Pedagogy This course is of analytical in nature. Problems will be handled in each unit. Students will be given individual assignments in the form of problems to be solved and cases to be analyzed, one at the completion of second unit and another at the completion of fourth unit. This will help them to get an in-depth knowledge in the course. Assignments must be submitted on the date specified then and there. Late submission wont be entertained.

Grading Scheme Final Grade in the course would consist of following components: Components Weightage Seminar 5% Announced tests 30% Assignment (Problems 15% in Ratio analysis, Flexible budget and Break even analysis) End term exam Total Text Books T1 Dr.S.N.Maheshwari, Principles of Management Accounting, Sultan Chand and Sons, New Delhi, 2009. T2 - N.P. Srinivasan and M. Sakthivel Murugan, Accounting for Management, Sultan Chand and Sons, New Delhi, 2010.
http://www.accaglobal.com/students/acca/exams/p5/technical_articles/2 950583

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Reference Books R1 Man Mohan & S.N.Goyal, Principles of Mnagement Accounting, Sahityabhavan, Agra, 1998. R2 M.Y.Khan and P.K.Jain, Cost Accounting, Tata McGraw Hill, 2004. R3 M.A.Sahaf, Management Accounting(Principles & Practice), Vikas Publishing House Pvt.Ltd.,New Delhi,2009. R4 M.N.Arora, Atext book of Cost and Management Accounting, Vikas Publishing House Pvt.Ltd., New Delhi, Eighth edition, 2006. Course Outline Sess. No. 1 2-3 Unit I I Topics Management accounting-meaning, functions, scope and limitations. Cost accounting meaning, importance and limitations, Difference between management, cost and financial accounting. Reading Material TI- Sec.A, Chapter1, T2- Chapter 1. T1- Sec.A, Chapter 1,3, T2- Chapter 13.

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II II III III III II II IV

Ratio analysis- Meaning, Managerial Classification and Limitations of ratios. .

uses, T1- Sec.B, Chapter 2. T1- Sec.B, Chapter 2.

Calculation of Liquidity, Profitability and turn over ratios. Preparation of financial statements from ratios and calculation of ratios from financial statements Budgetary control need, importance, and implementation Zero base budgeting

T1- Sec.C, Chapter 1, T2- Chapter 12 T1- Sec.C,Chapter 1, T2- Chapter 12. Preparation of Fixed and Flexible budget. T1- Sec.C, Chapter 1. Need and importance of fund flow statement T1- Sec. B,Chapter 3, T2- Chapter 9. Need and importance of cash flow statement, T1- Sec.B,Chapter 4, Difference between fund flow and cash flow T2- Chapter 10. statement Marginal costing Meaning, importance, T1- Sec.C, Chapter 4. applications of Marginal costing, Break even point analysis Meaning, Assumptions and limitations. Problems in Break even point analysis, Problems in applications of Marginal costing. Recent developments in Management and cost accounting Inflation accounting Human resource accounting Responsibility accounting Activity Based costing Target costing T1- Sec.C, Chapter 4. www.accaglobal.com, Handouts will be given T2- Chapter 18. T2- Chapter 19. T2- Chapter 20. T2- Appendix 21 A. T2- Appendix 21 B.

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