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COST AND MANAGEMENT ACCOUNTING [1]

Paper Code: 
25ATG/25BSG/25FSG221
Credits: 
06
Contact Hours: 
90.00
Max. Marks: 
100.00
Objective: 

This course will enable the students to develop an understanding of how management accountants provide information to facilitate decision-making in an organization.

Course Outcomes: 

Course

Learning outcome

        (at course level)

Learning and teaching strategies

Assessment Strategies

Course

Code

Course

title

25ATG/25BSG/25FSG 221

Cost and Management Accounting

(Theory)

CO31: Analyze the role of management accounting and cost accounting in business organization and assess the leverage analysis

CO32: Apply capital budgeting techniques in taking profitable decisions and understand the concept of cost of capital in computing cost while taking financing decisions.

CO33: Critically examine various theories of dividend and factors affecting dividend policy and applying budgetary control system as a tool of managerial planning and control 

CO34: Analyze various aspects of measurement of productivity and employees cost

CO35: Apply the concept of relevant and irrelevant costs in making decisions related to production using marginal costing and differential costing techniques

CO36: Contribute effectively in course-specific interaction

Approach in Teaching: Interactive Lectures, Discussion, Tutorials, Problem Solving Sessions & Presentations

 

Learning activities for the students: Self-learning assignments, Case Study Analysis, Class Presentations (Individual & Group)

 

Continuous Assessment Test, Semester End Examinations, Quiz, Solving Numerical Problems, Assignments,

Individual & Group Projects

 

18.00
Unit I: 
Introduction to Management Accounting and Leverages

● Meaning of Management Accounting, Functions of Management Accounting, Difference between cost accounting and management accounting.
● Financial Leverage : Measures – EBIT, EPS Analysis , Operating Leverage, Financial leverage, Business and Operating Risks.

18.00
Unit II: 
Capital Budgeting and Cost of Capital

● 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.

18.00
Unit III: 
Dividend Theories and Budgetary Control

● 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

18.00
Unit IV: 
Productivity Accounting and Employees Cost Analysis

● Productivity Accounting :Concepts, Classification, Measurement of productivity
● Employees Cost Analysis: Cost Benefit analysis, Measurement of Labour turnover, Overtime, Idle time, Bonus scheme for officers

18.00
Unit V: 
Cost Concepts and Production Decisions

● 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.

Essential Readings: 

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)

References: 

Suggested Readings:

  1. Management Accounting- H.Chakraborty and S. Chakraborty(Oxford University Press)
  2. Management Accounting and Financial Analysis- DrS.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)

 

e-Resources:

  1. Https://Nptel.Ac.In/Courses/110101003
  2. Https://Nptel.Ac.In/Courses/110107127 [2]
  3. Https://Nptel.Ac.In/Courses/110107144 [3]

 

 

Academic Year: 
2025-2026 [4]

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Source URL: https://accountingtaxation.iisuniv.ac.in/courses/subjects/cost-and-management-accounting-10

Links:
[1] https://accountingtaxation.iisuniv.ac.in/courses/subjects/cost-and-management-accounting-10
[2] https://nptel.ac.in/courses/110107127
[3] https://nptel.ac.in/courses/110107144
[4] https://accountingtaxation.iisuniv.ac.in/academic-year/2025-2026