Management Accounting

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

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

              Course Outcomes (COs):

Course

Learning outcomes (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

MFM 322

Management Accounting

CO 111:     Understand management accounting practices.

CO 112: Analyze and apply decisions based on CVP analysis.

CO 113: Develop conceptual background of various approachesof capital structure theories.

CO 114: Recognize the concept and use of Cash Flow Analysis.

CO 115: Analyze the variances and take the   corrective actions

CO 116: 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: 
Introduction & Capitalization

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

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 , Management of Cash & Receivables

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 Varianc 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:

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

 

Academic Year: 
2021-2022
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