Management Accounting

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MANAGEMENT ACCOUNTING - 36 hours

 UNIT I                                                                                                                        2 hours

Management Accounting –Nature and Scope – Difference between Cost Accounting,  Financial Accounting and Management accounting – Recent Trends in Management Reporting.

 UNIT II                                                                                                                       3 hours

Limitations of Financial statements - Analysis and Interpretation of financial Statement: - Meaning- Types and Methods of Financial Analysis – Comparative statements – Trend Analysis – Common size statements

 UNIT III                                                                                                                       6 hours

Ratio Analysis: - Meaning, Nature and interpretation – uses and limitations of Ratios – liquidity, profitability, Turnover ,Solvency, Leverage, Market test ratios – Constructions of Financial Statements from ratios –Judgment of financial stability to address users and stakeholders needs- assessing the performance of specialised, not-for-profit and public sector organisations

 UNIT IV                                                                                                                        5 hours

Fund Flow and Cash Flow Analysis:

a. Fund Flow Statement : theory

b. IAS 7 - Cash Flow Statement: Difference between fund flow statement and cash flow statements – Preparation of cash flow statements as per AS-3 Norms – Direct and Indirect methods  

 UNIT V                                                                                                                          4 hours

Managerial decision making with the help of C.V.P. Analysis : Marginal Costing-

Fixed Cost, Variable Cost, Contribution, P/V ratio, Break Even Analysis – Algebraic

and Graphic presentation – Relevant cost analysis  - Decision making:  Costs for decision making, variable costing and differential analysis as aids in making decisions – fixation of selling price, exploring new market, make or buy, product mix, operate or shut down, seller process further;  limiting factors – Dealing with risk and uncertainty in decision making

 UNIT VI                                                                                                                          3 hours                                                                       

Performance measurement and control - Performance management information

Systems - Sources of management information - Management reports - Performance analysis in private sector Organizations - Divisional performance and transfer pricing -  External considerations and behavioural aspects

 UNIT VII                                                                                                                          3 hours

 Responsibility Accounting –Concept – Significance – Responsibility centers- management reports – vis a vis accountants – management by exception         

 UNIT VIII                                                                                                                         5 hours

 Concept of budget and budgetary control, objectives, merits, and limitations, Budgeting process, Functional budgets, Cash budget, Fixed and flexible budgets, Zero base budget, Programme and performance budgets.