The course will enable students to -
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 |
Introduction: Meaning of Management Accounting, Functions of Management Accounting, Difference between cost accounting and management accounting.
Financial Leverage: 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)
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)