Management Accounting

Paper Code: 
COM 601
Credits: 
3
Contact Hours: 
45.00
Objective: 

The objective of this course is to provide the students understanding of application of accounting for managerial purpose

9.00
Unit I: 

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.

9.00
Unit II: 

Capital Structure: Concept, factors affecting capital structure, Theories of Capital Structure: Net Income Theory, Net Operating Income Theory, Traditional Theory, Modigliani-Miller Theory, Modern theories of capital structure.

9.00
Unit III: 

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

9.00
Unit IV: 

Standard Costing and Variance Analysis: Meaning of standard cost and standard costing, advantage, limitations and applications, Variance Analysis-Material, Labour, Overhead and Sales Variance

9.00
Unit V: 

Activity Based Costing: Concept, Nature or Characteristics, Elements, Process or Stages, Identification of Cost Drivers, Determination of Cost of each activity, Assigning or Tracing Activity Cost to Products, Distinction between Activity Based Costing System and Traditional System, Advantages and Limitations of Activity Based Costing System

Essential Readings: 
  1. Mangement Accounting-Agrawal, Agrawal(Ramesh Book Depot)
  2. Management Accounting-Khan and Jain(Tata Mc Graw Hill)
  3. Management Accounting-M.R Agarwal(Malik and Company)
  4. Management Accounting: S. K Singh( Sun India Publications)
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 Hal India New Delhi)
Academic Year: 
2018-2019
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