Syllabus (COMMERCE)

Course Type: MAJ-9

Semester: 6

Course Code: BCOMMAJ09T

Course Title: Management Accounting

(L-P-Tu): 5-0-1

Credit: 6

Practical/Theory: Theory

Course Objective: The course aims to help the students: 1. To learn a framework and structure for better decision-making and resource allocation. 2. To identify ways to improve performance and the overall profitability of an organization. 3. To improve understanding of cost dynamics and how it affects a company’s income statement. 4. To understand methods and techniques of budgetary control. 5. To understand the importance of responsibility accounting.

Learning Outcome: The outcomes of studying Management Accounting may include gaining a deeper understanding of financial statement analysis, an enhanced ability to develop and manage budgets, and becoming more comfortable interpreting and using financial models and analytics. Additionally, studying Management Accounting can enable students to make decisions based on the organization's financial goals, helping them anticipate and plan for future change.

Subject: Management Accounting

Unit 1: Introduction (Lectures: 10)

Management Accounting: Definition, objectives, scope, functions, advantages, limitations, techniques and needs; Comparison with cost and financial accounting; Role of management accountant.

Unit 2: Working Capital Management (Lectures: 10)

Introduction, meaning and concepts of working capital; Management and issues of working capital; Estimating working capital needs, operating and working capital cycle; Various sources of working capital; Financing Current Assets and strategies of financing. Negative Working Capital

Unit 3: Cash Flow and Fund Flow Analysis (Lectures:10 )

Cash Flow Statement- traditional and incorporating AS-14;

Fund flow statement with changes in working capital.

Unit 4: Ratio Analysis: (Lectures: 15)

Ratio analysis its meaning, advantages and disadvantages, Types of ratios, Interpretation of ratio, Common size statements, Trend analysis. Drafting of Balance Sheet with the help of accounting ratios, important ratios used in Capital Structure analysis.

Unit 5: Budgetary Control (Lectures:15 )

Budget and Budgetary Control; Budget manual, Principal budget factors, Preparing and monitoring procedure; Preparation of functional budgets (Production, Sales, Materials), Cash budgets, Basic idea of Master Budget, Flexible Budget.

Unit-6: Responsibility Accounting: (Lectures: 15)

Introduction, Meaning and significance of responsibility accounting; Prerequisites for responsibility accounting, Meaning of responsibility centres; Types of responsibility centres; Relevance of Responsibility Reporting, Limitations of Responsibility Accounting.

Reading References:

Arora, M.N., Management Accounting, Vikas Publishing House.

Atkinson, Management Accounting, Pearson Education.
Banerjee, B., Financial Policy and Management Accounting, World Press, Kolkata.

Bhat, Sudhindra, Management Accounting, Excel Books.

Chakravarty, A.K., Cost and Management Accountancy, New Central Book Agency, Kolkata.

Chakraborty, H. & Chakraborty, S., Management Accountancy, Oxford University Press.

Drury, Colin, Management and Cost Accounting, Cengage Learning.

Goel, Rajiv, Management Accounting, International Book House, New Delhi.

Hanif; M., Modern Cost and Management Accounting, Mc-Graw Hill Education.

Jain S.P. & Narang K.L., Cost and Management Accounting, Kalyani Publishers.

Jhamb, H.V., Management Accounting, Ane Books, New Delhi.

Khan, M.Y. & Jain, S.P., Management Accounting, Mc-Graw Hill Education.

Kishore, Ravi M., Cost and Management Accounting, Taxamnn Publications.

Maheshwari, S.N. & Mittal, S.N., Management Accounting, Shree Mahavir Book Depot, New Delhi.

Narasimhan, M.S., Management Accounting, Cengage Learning.

Pandey, I.M., Management Accounting, Vikas Publishing House.

Paul, S.K., Management Accounting, New Central Book Agency, Kolkata.

Rustagi, R.P., Management Accounting, Taxamnn Publications.

Sahaf, M.A., Management Accounting: Principles and Practice, Vikas Publishing House.

Sekhar & Rajagopalan, Management Accounting, Oxford University Press.

Shah, Management Accounting, Oxford University Press.

Shankaranarayana, H.V., Management Accounting, Cengage Learning.

Sharma R.K. & Gupta Shashi, Management Accounting: Principles and Practice, Kalyani Publishers.

Singh, S.K. & Gupta Lovleen, Management Accounting: Theory and Practice, Pinnacle Publishing House.

Singh, Surender, Management Accounting, Scholar Tech Press, New Delhi.

Singh, S. K. & Gupta Lovleen, Management Accounting: Theory and Practice, Pinnacle Publishing House.

Thukaram Rao, M.E., Management Accounting, New Age International.