COST AND MANAGEMENT ACCOUNTING

Paper Code: 
ATG/BSG/FSG 221
Credits: 
6
Contact Hours: 
90.00
Max. Marks: 
100.00
Objective: 

Course Outcomes

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies

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

CO31: Understand thoroughly the conceptual framework of Management Accounting; identification of differences between Cost Accounting and Management Accounting.

CO32: Understand and analyze capital budgeting process and capital budgeting techniques.

CO33: Critically examine various theories of dividend and factors affecting dividend policy.

CO34: Understand the concept of cost of capital and computing cost of different sources of capital.

CO35: Understand the concept of relevant and  irrelevant costs and make decisions related to product and production using marginal costing and differential costing techniques.

CO36: Understand budgetary control system as a tool of managerial planning and control; develop an ability to prepare various types of budget. 

 

Interactive Lectures, Discussion, Tutorials, assignments.

 

Class test,

Semester end examinations,

Quiz,

Solving problems in tutorials, Assignments,  Individual projects

     

 

12.00
Unit I: 

Introduction: 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: 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.

 

20.00
Unit III: 
  • 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 :Concepts, Classification, Measurement of productivity
  • Employees Cost Analysis: Cost Benefit analysis, Measurement of Labour turnover, Overtime, Idle time, Bonus scheme for officers

 

22.00
Unit V: 
  • 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: 
  • Management Accounting - Agrawal, Agrawal(Ramesh Book Depot)
  • Management Accounting-Khan and Jain(Tata McGraw Hill)
  • Cost Analysis and Cost Control: Oswal, Modi, Mangal, (Ramesh Book Depot)
  • Advanced Cost Accounting: Oswal, Modi, Mangal, (Ramesh Book Depot)

 

References: 
  • Management Accounting- H.Chakraborty and S. Chakraborty(Oxford 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)

 

e-RESOURCES:

 

JOURNALS:

  • The Indian Journal of Commerce           
  • IUP Journal of Accounting Research
  • FIIB Business Review
  • Vikalpa: Journal for Decision Makers

 

Academic Year: