Management Accounting

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

Course Objective: 

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

Course Outcomes (COs):

Learning outcomes

(at course level)

Learning and teaching strategies

Assessment

Strategies

  
 

CO 96:    Understand management accounting practices.

 

CO 97: Apply management decisions in various situations.

CO 98:To develop conceptual background of various approaches of capital structure theories.

 

CO 99:To provide students with relevant management accounting information for financial decision making and process improvement          

CO 100:To help the students to analyze the variances and take the corrective actions.

 

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: 
Introduction:

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: 
Capital Structures:

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: 
Cash Flow Analysis:

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: 
Standard Costing and Variance Analysis:

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: 
Cost Volume Profit Analysis:

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: 

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

Academic Year: 
2020-2021
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