Management Accounting (Theory)

Paper Code: 
ATG/BSG/FSG/BSR/FSM/HRG/IBG 611
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

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

COURSE OUTCOMES (COs):

Course

Learning outcome

 (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

ATG/BSG/FSG

/BSR/FSM/

HRG/IBG 611

Management Accounting

CO 1:Critically analyse and understand the concept of Management Accounting and Working Capital.

CO 2:Develop skills in planning & arranging different type of Capital Structure in long Term and Short Term.

CO 3:Understand the concept of Cash Flow Statement & Develop the skills of Preparing it under the guidance of AS.

CO 4:Inculcate skills among the students in the field of Standard Costing or Variance Analysis.

CO 5:Evaluate critically Management Accounting practice with the aim of improving the management accounting system by applying Activity Based Costing

Approach in teaching:

Explanations,

Discussion, Project work.

 

Learning activities for the students:

Field activities, Presentation, Giving tasks

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 betweenActivity Based Costing System and Traditional System,
  • Advantages and Limitations of Activity Based Costing System

 

 

References: 
  • Mangement Accounting-Agrawal, Agrawal(Ramesh Book Depot)
  • Management Accounting-Khan and Jain(Tata Mc Graw Hill)
  • Management Accounting-M.R Agarwal(Malik and Company)
  • Management Accounting: S. K Singh( Sun India Publications)
  • Advanced Management Accounting, R K Tailor(RBSA Publishers, Jaipur)
  • Management Accounting-H.Chakraborty and S. Chakraborty(Oxfor University Press)
  • Management Accounting and Financial Analysis-Dr S.N Maheshwari(S.Chand& Sons)
  • Management Accounting- N. Vinayakkam& IB Sinha (Himalaya Publishing House)
  • Advance Management Accounting-R.S Kaplan& A.A Atkinson (Prentice Hall India New Delhi)

 

Academic Year: 
2020-2021
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