Cost & Management Accounting

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

The course will enable students to -

  1. Promote the knowledge of Cost and Management Accountancy.
  2. Enable students to acquire knowledge of concepts, methods and techniques of management accounting for the purpose of planning, control and decision making by the management.
  3. Develop the ability and competence to have a problem-solving approach towards the issues which accompany the dynamism attached to the business world.

Course Outcomes (COs):

Course

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

ATG / BSG / FSG 221

Cost and Management Accounting

(Theory)

The students will be able to –

 

CO24: Understand thoroughly the conceptual framework of Management Accounting; identification of differences between Cost Accounting and Management Accounting.

CO25: Understand and analyze capital budgeting process and capital budgeting techniques.

CO26: Critically examine various theories of dividend and factors affecting dividend policy.

CO27: Understand the concept of cost of capital and computing cost of different sources of capital.

CO28:Understand the concept of relevant and  irrelevant costs and make decisions related to product and production using marginal costing and differential costing techniques.

CO29: Understand budgetary control system as a tool of managerial planning and control; develop an  ability to prepare various types of budget. 

Approach in teaching:

Interactive Lectures, Discussion, Tutorials, assignments.

 

Learning activities for the students:

Self learning assignments, Effective questions,  Giving tasks, Solving numerical problems

Class test,

Semester end examinations,

Quiz,

Solving problems in tutorials, Assignments,  Individual projects

 

 

12.00
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 - Business and Operating Risks.
18.00
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: 
.
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: 
.
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: 
.
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: 
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)
References: 
1. Management Accounting-H.Chakraborty and S. Chakraborty(Oxford University Press)
 
2. Management Accounting and Financial Analysis-Dr S.N Maheshwari(S.Chand& Sons)
3. Management Accounting- N. Vinayakkam& IB Sinha (Himalaya Publishing House)
4. Advance Management Accounting-R.S Kaplan& A.A Atkinson (Prentice Hall India New Delhi)
Academic Year: 
2019-2020
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