COST AND MANAGEMENT ACCOUNTING

Paper Code: 
ATG / BSG/ FSG 221
Credits: 
6
Contact Hours: 
90.00
Max. Marks: 
100.00
Objective: 

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies

  
 

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.

 

Class test,

Semester end examinations,

Quiz,

Solving problems in tutorials, Assignments,  Individual projects

  

 

12.00
Unit I: 
Unit I
  • 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.  

 

18.00
Unit II: 
Unit II

• 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.

20.00
Unit III: 
Unit III

• 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

18.00
Unit IV: 
Unit IV

• Productivity Accounting :Concepts, Classification, Measurement of productivity
• Employees Cost Analysis: Cost Benefit analysis, Measurement of Labour turnover, Overtime, Idle time, Bonus scheme for officers

22.00
Unit V: 
Unit V

• 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.

Essential Readings: 

• 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)

References: 

SUGGESTED READINGS:

·         Management Accounting- H.Chakraborty and S. Chakraborty(Oxford University Press)

·         Management Accounting and Financial Analysis- Dr S.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

JOURNALS:

·         The Indian Journal of Commerce           

·         IUP Journal of Accounting Research

             ·         FIIB Business Review

             ·         Vikalpa: Journal for Decision Makers

Academic Year: 
2023-2024
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