Accounting for Managers

Paper Code: 
MFM 125
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

                                             Course Objectives

  1. The basic purpose of this course is to develop an insight of postulates, principles and techniques of accounting so as to equip the student for basic managerial functions related to accounting.

                                           Course Outcomes (COs):

Learning outcomes

(at course level)

Learning and teaching strategies

Assessment

Strategies

  
 

CO 21.Understand basic Accounting concepts and principles.

CO 22.Write journal entries, make Trial Balance and prepare Final Accounts of a Company.

CO 23.Understand various tools and techniques of financial analysis used for decision making.

CO 24.Understand basic Cost Concepts and use techniques of CVP analysis for decision making.

CO 25.Become aware about various contemporary issues/concepts in Accounting

 

Approach in teaching:

Interactive Lectures, Group Discussion, Tutorials, Case Study

 

Learning activities for the students:

Self-learning assignments, presentations

Class test, Semester end examinations, Quiz, Assignments, Presentation

  

 

10.00
Unit I: 
Introduction & Basics of Financial Accounting:

Introduction

Accounting-Meaning and definition, Nature, Need, objectives, Importance, Limitations, Users of accounting information, Branches of accounting, Accounting as an information system, Generally accepted accounting principles (GAAP)

Basics of Financial Accounting

Accounting equation, Systems of Book Keeping, Types of accounts and their Rules, Basics of Journal and ledger

12.00
Unit II: 
Final Accounts:

Final Accounts

Trial Balance-meaning, preparation, errors; Final accounts-contents and their preparation with adjustments

15.00
Unit III: 
Financial Analysis:

Financial Analysis

Meaning, objectives and types of financial analysis, Tools or techniques of financial analysis-Ratio analysis(meaning, objectives, limitations, classification, preparation of financial statements from ratios),Comparative and common size financial statements, Fund Flow analysis and Cash Flow analysis-Meaning, difference and contents

13.00
Unit IV: 
Cost concepts & Cost-Volume-Profit Analysis

Cost concepts-Meaning, Objectives, Importance, Methods, Techniques and systems of costing; Basic Cost Concepts-Elements of cost, classification of costs; Cost sheet; Cost-Volume-Profit Analysis-Meaning, Assumptions, Significance, Break even analysis, Contribution and Marginal cost equation, Profit-Volume ratio, Margin of safety, key factor; Effect of change in the profit factors,

 

10.00
Unit V: 
Budgets & Contemporary issues/concepts in accounting

Budgets-Functional budgets, Master Budget, Fixed and Flexible budgets Contemporary issues/concepts in accounting

Convergence to International financial reporting standards (IFRS); Inflation Accounting, Green Accounting, Carbon Credit Accounting, Human Resources Accounting; Value Based Management; Cost reduction systems-kaizen costing system, Activity Based Costing, Life cycle costing; Zero Base Budgeting (ZBB), Performance Budgeting, Social Accounting.

Essential Readings: 

• Maheshwari, Maheshwari, A text book of accounting for Management, Sultan Chand &Sons.
• Agarwal M R, Management Accounting-I, Garima Publications.

References: 

References
• M. Y Khan, P.K. Jain, Management Accounting : Text problem and Cases. Tata McGraw Hill.
• Shukla And Grewal, Advanced Accounts, Sultan Chand and sons
• IM Pandey, Management accounting, Vikas Publishing House.
• M.N. Arora, Cost Accounting Principles & Practices, Eight edition, Vikas Publishing house.
• Horngren, Management Accounting, Pearson Education.
• Anthony Robert, Management Accounting Principles, R D. Irwin.
• Kothari & Godha, Management Accounting-Concepts and applications, Macmillan publishers

Academic Year: 
2020-2021
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