MANAGEMENT ACCOUNTING

Paper Code: 
MFM 322
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

Course Outcomes

Learning and teaching strategies

Assessment

Strategies

  
 

CO 114.         Understand management accounting practices and capitalization

CO 115. Analyze and apply decisions based on CVP analysis.

CO 116. Develop conceptual

background of various approaches

of capital structure theories.

CO 117. Recognize the concept and use of Cash Flow Analysis.

CO 118. Analyze the variances and take the    corrective actions

 CO 119. Apply corporate cash management and accounts receivables management to maximize the shareholders’ value.

Approach in teaching:

Interactive Lectures using whiteboards, Discussion, Tutorials,  Reading assignments, Demonstration, Team teaching, Short Quiz consisting of numerical problems

 

 

Learning activities for   the students:

 

Self  learning assignments, Effective questions, Solving problems of unsolved questions, Problem based learning-cases, Group learning teamwork,

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects, Task based exercise to assess student’s understanding

  
 

 

12.00
Unit I: 
Unit-1

Introduction: Meaning of Management Accounting, Functions of Management Accounting, Difference between cost accounting and management accounting.

Capitalization – Under Capitalization and Over Capitalization.

12.00
Unit II: 
Unit-II

Capital Structures: Approaches to Capital Structure Theories - Net Income approach, Net Operating Income approach, Modigliani-Miller (MM) approach, Traditional approach, Capital Structure and Financial Distress, Trade-Off Theory.

12.00
Unit III: 
Unit-III

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

Management of Cash: Motives of holding cash, cash management, Cash Planning and Forecasting.

Management of Receivables: Cost associated with receivables, Objective and Factors affecting Investment in receivables, Credit Evaluation.

 

12.00
Unit IV: 
Unit-IV

Standard Costing and Variance Analysis: Meaning of standard cost and standard costing, advantage, limitations and applications, Variance Analysis-Material Variance & Labour Variance

Introduction to Activity Based Costing

12.00
Unit V: 
Unit-V

Cost Volume Profit Analysis: Meaning, Significance  and  Limitations of CVP Analysis, Contribution, Profit Volume Ratio, Breakeven Point, Margin of Safety, Key factor, Decisions based on Marginal Costing like Make or Buy, Own or Lease, Shut down or Continue.

Essential Readings: 
  • Management Accounting-Agrawal, Agrawal(Ramesh Book Depot)
  •  Management Accounting-Khan and Jain(Tata McGraw Hill)
  • Management Accounting-M.R Agarwal(Malik and Company)
  • Management Accounting: S. K Singh( Sun India Publications)
References: 

             Suggested Readings:

  • Ravi M Kishor,Cost Accounting, Taxmann’s Publications
  • Ramachandran &Kakani, Financial Accounting for Management, Tata Mcgraw Hill.
  • Agarwal & Mishra, Business Finanace, RBD Publications

            E-resources:

           Journals:

 

Academic Year: 
2022-2023
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