Management accounting

Prof. Devinder Sehgal

The subject is divided into two major categories

PART A Introduction of management accounting Techniques of management accounting PART B Use of techniques in managerial decision making

Part A and B taken together will be comprising of 8 teaching modules

Part A Module I Nature and scope of MA Introduction Financial Accounting VS. Management Accounting Cost Accounting VS. Management Accounting Advantages and limitations of Management accounting

MODULE 2
Budgeting and budgetary control Budget, budgetary control system objectives, advantages and limitations and components of budgetary control system Different types of budgets Functional Budgets Flexible Budgets Fixed Budgets Zero based budgeting

MODULE 3
Standard costing and variance analysis Introduction Definitions Applicability of standard costing Standard cost Vs. Estimated cost VARIANCE ANALYSIS Material Variances Labor variances Overhead variances

Part B Module 4
Management Decision Making Special types of cost for decision making Product cost Period cost Opportunity cost Conversion cost Imputed cost Controllable cost Uncontrollable cost Out of pocket cost Shut down cost Sunk cost Urgent cost Relevant cost Irrelevant cost

Module 5
Marginal costing and managerial application Fixation of selling price Accepting or rejecting an offer Make or buy decision Selection of a suitable product mix Discontinuance of product line Operate or shut down decisions Sell or further process

Module 6
Differential costing Definition and practical orientation Difference between marginal and differential costing techniques Similarities

Module 7
Responsibility accounting Introduction Requisites for RA Steps involved in RA Responsibility centers Advantages of and problems in RA

Module 8
Miscellaneous Activity based costing ABC Analysis Cost control Cost management Cost reduction Target costing

Pedagogy
Techniques and application of costing will be introduced to students in the form of case lets to let them overcome their fear of case situations. Follow up of the concept and recapitulation will be taken care of through assignments Teaching methodology will include discussions and problem solving.

Evaluation criterion
Students will be assessed on the basis of Attendance -10% Class participation-10% Assignments-10% Mid term-30% End term-40%

Text and References

Cost and management accounting by Maheshwari Management Accounting- Theory and Practice by S. K. Singh and Loveleen Gupta Publishers- Pinnacle Costing decision making by Rangarajan publishers Excel books

Thank you