Management Accounting - I

Paper Code: 
MBA-226
Credits: 
4.0
Contact Hours: 
40.00
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.
11.00
Unit I: 
Introduction to Management Accounting

Nature and Purpose of Management Accounting, Generally Accepted Accounting Principles

7.00
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.

12.00
Unit III: 
Ratio Analysis

Interpretation of Ratios, Significance and Limitations of Ratio Analysis, Calculation of Current Ratio, Liquid Ratio, Debt Equity Ratio, Stock Turnover Ratio, Debtors Turnover Ratio, Net Profit Ratio, Gross Profit Ratio, ROI, EPS, P/E Ratio & Dividend Payout Ratio.

5.00
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.
Similarities and difference between Cost Accounting, Financial Accounting and Management Accounting.

5.00
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: 
  • M Y Khan & P K Jain, Managerial Accounting, Tata McGraw Hill Publication, 2009
  • M.R.Agarwal, Management Accounting, Garima Publications, 2010
  • Dr. S.N. Maheswari, Management Accounting, Sultan Chand & Sons Publication, 2009
References: 
  1. Ravi M Kishore, Advanced Cost Accounting & Cost Systems, Taxmann’s Publication, 2009
  2. Vijay Kumar, Accounting for Management, McGraw Hill Publication,4th Edition
  3. Anthony, Hawkins, Merchant, Accounting, Text and Cases,  Tata McGraw Hill Publication,12th Edition
  4. Ramachandran & Kakani, Financial Accounting for Management, Tata McGraw Hill, 2 nd Edition