Management Accounting

Syllabus

BBA 207: MANAGEMENT ACCOUNTING

Unit 1                                                                                            (14 Hours)

Introduction: Meaning, Objectives, and Scope of Management Accounting; Difference between Financial Accounting, Cost Accounting and Management Accounting; Comparative Financial Statements, Common Size Financial Statements, Trend Analysis, Ratio Analysis, Cash Flow Statement.

Unit 2                                                                                            (14 Hours)

Budgetary Control and Variances: Concept and Types of Budgeting and Budgetary Control; Meaning, Objectives, Merits, and Limitations of Budgetary Control; Budget Administration; Functional Budgets Including Cash Budget; Fixed and Flexible Budgets: Meaning and Preparation; Zero-Based Budgeting; Performance Budgeting, Difference between Performance & Traditional Budgeting. Meaning of Variance and Variance Analysis – Material, Labour, Overheads and Sales Variances, Disposition of Variances, Control Ratios.

Unit 3                                                                                            (14 Hours)

Costing and Profit Planning: Meaning of Variable Costing, Absorption Costing and Marginal Costing; Uses of Marginal Costing; Cost-Volume-Profit Analysis, Profit/Volume Ratio, Break-Even Analysis - Algebraic and Graphic Methods, Angle of Incidence and Margin of Safety.

Unit 4                                                                                            (14 Hours)

Managerial Decision Making: Decision Making Based on Marginal Cost Analysis - Profitable Product Mix, Make or Buy, Addition or Elimination of a Product Line, Sell or Process Further, Operate or Shut Down Managerial Decision-Making Using Spreadsheets.