Coming soon
COST AND MANAGEMENT ACCOUNTING
This course will enable the students to develop an understanding of how management accountants provide information to facilitate decision-making in an organization.
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Course |
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Learning and teaching strategies |
Assessment Strategies |
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Course Code |
Course title |
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25ATG/25BSG/25FSG 221 |
Cost and Management Accounting (Theory) |
CO31: Analyze the role of management accounting and cost accounting in business organization and assess the leverage analysis CO32: Apply capital budgeting techniques in taking profitable decisions and understand the concept of cost of capital in computing cost while taking financing decisions. CO33: Critically examine various theories of dividend and factors affecting dividend policy and applying budgetary control system as a tool of managerial planning and control CO34: Analyze various aspects of measurement of productivity and employees cost CO35: Apply the concept of relevant and irrelevant costs in making decisions related to production using marginal costing and differential costing techniques CO36: Contribute effectively in course-specific interaction |
Approach in Teaching: Interactive Lectures, Discussion, Tutorials, Problem Solving Sessions & Presentations
Learning activities for the students: Self-learning assignments, Case Study Analysis, Class Presentations (Individual & Group)
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Continuous Assessment Test, Semester End Examinations, Quiz, Solving Numerical Problems, Assignments, Individual & Group Projects |
● Meaning of Management Accounting, Functions of Management Accounting, Difference between cost accounting and management accounting.
● Financial Leverage : Measures – EBIT, EPS Analysis , Operating Leverage, Financial leverage, Business and Operating Risks.
● Capital Budgeting: Meaning, Importance, Kinds of Capital Budgeting Decision: Accept, Reject Decision, Mutually Exclusive Project Decision. Methods of Ranking Investment Proposals: Traditional Techniques, Discounted Cash Flow Methods, Limitations of Capital Budgeting.
● Cost of Capital: Definition and Meaning, Significance, Classification, Historical Cost and Future Cost, Specific Cost of Capital for various Sources of Finance: Cost of Debt , Cost of Preference Capital, Cost of Equity Capital, Cost of Retained Earnings, Weighted Average Cost of Capital.
● Dividend Theories – Walter's Model, Gordon and MM‟s Models , Dividend Policy. Forms of Dividend, Determinants of Dividend Policy
● Budgeting and Budgetary Control: Concept of Budget and Budgetary Control objectives, merits, and limitations, Functional Budgets, Fixed and Flexible Budgets, Zero Base Budget
● Productivity Accounting :Concepts, Classification, Measurement of productivity
● Employees Cost Analysis: Cost Benefit analysis, Measurement of Labour turnover, Overtime, Idle time, Bonus scheme for officers
● Cost Concepts for Decision Making:
Relevant cost, opportunity cost, differential cost, and their application, Research and development cost
● Product and Production Decisions- Make or buy decision, Shut down or continue decision, Expand or contract decision, Export Vs. domestic sale decision etc.
1. Management Accounting - Agrawal, Agrawal(Ramesh Book Depot)
2. Management Accounting-Khan and Jain(Tata McGraw Hill)
3. Cost Analysis and Cost Control: Oswal, Modi, Mangal, (Ramesh Book Depot)
4. Advanced Cost Accounting: Oswal, Modi, Mangal, (Ramesh Book Depot)
Suggested Readings:
- Management Accounting- H.Chakraborty and S. Chakraborty(Oxford University Press)
- Management Accounting and Financial Analysis- DrS.N.Maheshwari (S.Chand& Sons)
- Management Accounting - N. Vinayakkam& IB Sinha (Himalaya Publishing House)
- Advance Management Accounting - R.S Kaplan& A.A Atkinson (Prentice Hall India New Delhi)
e-Resources:
- Https://Nptel.Ac.In/Courses/110101003
- Https://Nptel.Ac.In/Courses/110107127
- Https://Nptel.Ac.In/Courses/110107144
