Course Outcomes |
Learning and teaching strategies |
Assessment Strategies |
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On completion of this course, the students will be able to: CO31: Understand thoroughly the conceptual framework of Management Accounting; identification of differences between Cost Accounting and Management Accounting. CO32: Understand and analyze capital budgeting process and capital budgeting techniques. CO33: Critically examine various theories of dividend and factors affecting dividend policy. CO34: Understand the concept of cost of capital and computing cost of different sources of capital. CO35: Understand the concept of relevant and irrelevant costs and make decisions related to product and production using marginal costing and differential costing techniques. CO36: Understand budgetary control system as a tool of managerial planning and control; develop an ability to prepare various types of budget. |
Interactive Lectures, Discussion, Tutorials, assignments.
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Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Individual projects |
• Introduction: 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.
• Management Accounting - Agrawal, Agrawal(Ramesh Book Depot)
• Management Accounting-Khan and Jain(Tata McGraw Hill)
• Cost Analysis and Cost Control: Oswal, Modi, Mangal, (Ramesh Book Depot)
• Advanced Cost Accounting: Oswal, Modi, Mangal, (Ramesh Book Depot)
SUGGESTED READINGS:
e-RESOURCES:
• https://nptel.ac.in/courses/110101003
• https://nptel.ac.in/courses/110107127
• https://nptel.ac.in/courses/110107144
JOURNALS:
• The Indian Journal of Commerce
• IUP Journal of Accounting Research
• FIIB Business Review
• Vikalpa: Journal for Decision Makers