Accounting for Managers

Paper Code: 
MBA-226
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 
  • To familiarize the students with the preparation & calculation of management accounts.
  • To develop an understanding of accounting data which helps in managerial decision making.
Unit I: 
Introduction to Management Accounting

Nature and Purpose of Management Accounting, Generally Accepted Accounting Principles

Elementary Financial Accounting

Journal Entries, Ledger, Trial Balance, Preparation of Final Accounts of sole proprietor (with basic adjustments only)

Unit II: 
Financial Statement Analysis

Meaning and Importance of Financial Analysis, Types of financial analysis – Horizontal, Vertical, Internal and External. Tools of financial analysis – Comparative statements, common size statements and trend analysis.

Unit III: 
Ratio Analysis

Meaning, Significance and Limitations of Ratio Analysis, Calculation & Interpretation of Liquidity Ratios, Solvency Ratios, Turnover Ratios, Profitability Ratios and Investment Ratios.

Unit IV: 
Basic Concepts of Cost Accounting

Meaning & Definition of Cost Accounting, Cost Unit, Types of Cost Unit, Cost Centre, Elements of Cost – Material, Labour and Expenses. Preparation of Cost Sheet.

Similarities and difference between Cost Accounting, Financial Accounting and Management Accounting.

Unit V: 
Cost- Volume- Profit Analysis

Meaning, Concept of Marginal Costing, Utility and Limitations of CVP.

Break- Even Analysis, Profit Volume Ratio and Margin of Safety.

Essential Readings: 
<>····Ramachandran & Kakani, Financial Accounting for Management, Tata McGraw Hill,

2nd Edition, 2011.

References: 
  • M Y Khan & P K Jain, Managerial Accounting, Tata McGraw Hill Publication, 2011.
  • M.R.Agarwal, Management Accounting, Garima Publications, 2010.
  • Narayanaswamy R., Financial Accounting: A Managerial Perspective, PHI, 5th Edition, 2014.
Academic Year: 
2018-2019
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