SEMESTER II

Course Code

Title

18COU25/18COC27/18COE28/18AFU25/18CRM25/18BPU25/18FTU25

18FSU25/18CBI25 MANAGEMENT ACCOUNTING

Class

III B.Com FS

Semester

VI

Course Objectives

The Course aims to

·   Make an understanding about Nature and Scope of ManagementAccounting.

·   Familiarize the techniques of Financial StatementAnalysis.

·   Expose the new format for Funds flow and Cash FlowStatement.

·   Comprehend the various types of Budgets and Importance of BudgetingControl.

·   Develop knowledge on Managerial Costing and StandardCosting.

UNIT

Content

No. of Hours

I

Introduction to Management Accounting

Management Accounting – Nature and Scope – Objectives – Functions – Importance - Limitations - Management Accounting and Financial Accounting - - Management Accounting and Cost Accounting – Installation of Management Accounting System.

14

II

Financial Statements

Financial Statement Analysis – Types of Financial Analysis – Techniques -

Comparative Financial Statements    – Common Size Statements – Ratio Analysis Significance - Limitations – Liquidity, Solvency, Activity and ProfitabilityRatios

14

III

Funds Flow and Cash Flow Statements

Fund Flow Statement – Concepts – Importance and Limitations – Preparation of Fund Flow Statement – Schedule of Changes in Working Capital – Statement of Sources and Application of Funds – Cash Flow Statement – Uses, Significance and Limitations – Preparation of Cash Flow Statement (New format) – Discounted Cash Flow (Theory

only).

15

IV

Budgetary Control

Budgetary Control – Meaning - Objectives – Requisites for a Successful Budgetary Control System – Fixed and Flexible Budget – Functional Budgets.

14

V

Marginal Costing and Standard Costing

Marginal Costing – Meaning – Characteristics - Contribution – P/V Ratio – Break Even Analysis – Margin of Safety- Applications of Marginal Costing – Techniques of Marginal Costing - Standard Costing – Meaning – Steps involved in Standard Costing

– Variance Analysis – Material, Labour.

15

Distribution of Marks: 20% Theory and 80% Problem

References

Textbooks

1. Sharma. R.K and S.K. Gupta, “Management Accounting”, 13thEd., Kalyani Publishers, New Delhi,2017.

Reference Books

1.  Pillai. R.S.N. and Bagavathi, “Management Accounting”, 11thEd., Sultan Chand & Sons, New Delhi,2016

2. Jain.S.P andK.L.Narang,    “Cost and Management Accounting”, Kalyani Publishers, New Delhi,2014

3. Maheswari S.N, “Principles of Management Accounting”, 17thRevised Ed., Sultan Chand & Sons, New Delhi, 2018

4.  KhanM.Y.andJainP.K,“ManagementAccounting”,4thEd.,TataMcGraw–HillPublishing

Company, New Delhi, 2006