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Cost & Management Accounting [1]

Paper Code: 
MED -221
Credits: 
6
Contact Hours: 
90.00
Max. Marks: 
100.00
Objective: 

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

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 - 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: 
  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: 
  1. Management Accounting-H.Chakraborty and S. Chakraborty(Oxford University Press)
Academic Year: 
2019-2020 [2]

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Source URL: https://business.iisuniv.ac.in/courses/subjects/cost-management-accounting-2

Links:
[1] https://business.iisuniv.ac.in/courses/subjects/cost-management-accounting-2
[2] https://business.iisuniv.ac.in/academic-year/2019-2020