Management Accounting

Paper Code: 
FSG 611
Credits: 
03
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

CO198:Analyse and understand the concept of Management Accounting and Working Capital Requirement.

CO199:Develop skills in planning & arranging different type of Capital Structure in long Term and Short Term.

CO200:Evaluate the concept of Cash Flow Statement & Develop the skills of Preparing it under the guidance of Accounting Standards.

CO201: Develop the skills among the students to analyse and interpret in the field of Standard Costing or Variance Analysis.

CO202: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: 
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: 
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: 
UNIT III

Cash Flow Analysis

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

11.00
Unit IV: 
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: 
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

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. Advanced Management Accounting, R K Tailor(RBSA Publishers, Jaipur)
2. Management Accounting-H.Chakraborty and S. Chakraborty(Oxfor University Press)
3. Management Accounting and Financial Analysis-Dr S.N Maheshwari(S.Chand& Sons)
4. Management Accounting- N. Vinayakkam& IB Sinha (Himalaya Publishing House)
5. Advance Management Accounting-R.S Kaplan& A.A Atkinson (Prentice Hall India New Delhi)

Academic Year: 
2021-2022
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