MANAGEMENT ACCOUNTING

Paper Code: 
COM 601
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

Course Outcomes

Learning and teaching strategies

Assessment Strategies

On completion of this course, the students will be able to:

CO 206: Analyse and understand the concept of Management Accounting and Working Capital Requirement.

CO 207: Develop skills in planning & arranging different type of Capital Structure in long Term and Short Term.

CO 208: Evaluatethe concept of Cash Flow Statement & Develop the skills of Preparing it under the guidance of Accounting Standards.

CO 209: Develop the skillsamong the students to analyse and interpret in the field of Standard Costing or Variance Analysis.

CO 210: Evaluate critically Management Accounting practice with the aim of improving the management accounting system by applying Activity Based Costing.

Explanations, Discussion, Project work.

 

 

 

Observation, Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects

 

10.00
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.
• Capitalization: Concept, Theoretical aspect of Over Capitalization and Under Capitalization.

10.00
Unit III: 
Cash Flow Analysis:

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

11.00
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

5.00
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: 

• Agrawal, & Agrawal Management Accounting Ramesh Book Depot
• Khan & Jain Management Accounting Tata Mc Graw Hill
• Agarwal, M.R, Management Accounting Malik and Company

References: 

• Singh , S. K Management Accounting Sun India Publications
• Chakraborty, H. & Chakraborty, S. Management Accounting Oxford University Press
• Maheshwari , S.N Management Accounting and Financial Analysis S.Chand& Sons
• Vinayakkam, N. & Sinha, IB Management Accounting Himalaya Publishing House
• Kaplan, R.S & Atkinson , A.A .Advance Management Accounting Prentice Hall India New Delhi

Academic Year: 
2022-2023
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