Management Accounting

Management Accounting : Nature and Functions, Financial vs. Management Accounting, Cost vs. Management Accounting, Role of Management Accountant, Cost Concepts and Classifications.

Unit II :

Activity Based Costing (ABC) : Concept and Uses, Allocation of Overhead Under ABC, Steps of Develop ABC Traditional Costing System vs. ABC.

Unit III :

Variable and Absorption Costing : Concept, Historical Costing vs. Marginal Costing, Cost-Volume-Profit (CVP) Analysis-Contribution Margin, Break-Even Analysis, Profit Volume (P/V) Analysis, Multiple Product Analysis, Optimal use of Limited Resources.

Unit IV :

Relevant Information and Short-Run Managerial Decisions : Managerial Decision Making, Decision Making Process, Differential Analysis, Types of Managerial Decisions-Make/Buy, Add/Drop, Sell/Process Further, Operate/Shutdown, Special Order, Product-Mix, Pricing Decisions.

Unit V :

Budgeting : Nature and Functions, Preparation of Different Types of Budgets, Fixed Versus Flexible Budgeting, Standard Costing—Concept, Advantages, Types of Standards, Variance Analysis, Materials, Labour, Overhead, Managerial uses of Variances.

Unit VI :

Responsibility Accounting : Concept of Responsibility Accounting— Meaning Essential Steps for Responsibility Accounting, Responsibility Centers—Cost Centre, Revenue Centre, Profit Centre, Investment Centre, Cost Centre vs. Responsibility Centers, Transfer Pricing— Concept, Methods, Objective, Performance Evaluation Reporting, Measurement of Performing.