Cost & Management Accounting

Introduction: Meaning of Management Accounting, Functions of Management Accounting, Difference between cost accounting and management accounting.

Management of Working Capital: Concepts and Significance, Factors affecting working capital requirements, Ascertainment of working capital requirements using Operating Cycle Method, Net Current Assets or Forecasting Method, Projected Balance Sheet Method, Salient features of Tandon Committee and Chore Committee. Ratios relating to working capital. Case Study of working capital requirement for various industries.

Cash Flow Analysis: Introduction, Concept of Cash, Use of Cash Flow Analysis, Construction of Cash Flow Statement.          

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.

Ratio Analysis: Introduction, Ratio Analysis, Classification of Ratios, Structure of Discussion of Ratios, Liquidity Ratios, Solvency Ratios, Resources Efficiency or Turnover Ratios, Profitability/ Profit Margin Ratios, Du Point Analysis, Valuation of Capital Market Ratios.

Marginal Costing and Cost Volume Profit Analysis: Break-Even Analysis, Algebraic and Graphic Methods.

Decision Making- Determination of product mix, make or buy decisions, Selection of Equipment (own or lease), Export decisions.

Standard Costing and Variance Analysis: Meaning of Standard Cost and Standard Costing, Advantages, Limitations and Applications, Variance Analysis- Material, Labour, Overhead and Sales Variances.

Budgeting and Budgetary Control: Concept of Budget and Budgetary Control objectives, merits, and limitations, Functional Budgets, Fixed and Flexible Budgets, Zero Base Budget. 

.