Cost & Management Accounting

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

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.

Unit II: 

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

Unit III: 

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

Unit IV: 

Ratio Analysis: Introduction, Ratio Analysis, Classification of Ratios, Structure of Discussion of Ratios, Liquidity Ratios, Solvency Ratios, Resources Efficiency or Turnover Ratios, Profitability/ Profit Margin Ratios, Du Point Analysis, Valuation or Capital Market Ratios
Marginal Costing and Cost Volume Profit Analysis: Break-Even Analysis, Algebraic and Graphic Methods.
Decision Making- Determination of product mix, make or buy decisions, Selection of Equipment (own or lease), Export decisions

Unit V: 

Standard Costing and Variance Analysis: Meaning of Standard Cost and Standard Costing, Advantages, Limitations and Applications, Variance Analysis- Material, Labour, Overhead and Sales Variances.
Budgeting and Budgetary Control: Concept of Budget and Budgetary Control objectives, merits, and limitations, Functional Budgets, Fixed and Flexible Budgets, Zero Base Budget.

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)


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

Note- The candidate shall be permitted to use battery operated pocket calculator that should not have more than 12 digits, 6 functions and 2 memories and should be noiseless and cordless

Academic Year: