Management Accounting

MBAT-202: MANAGEMENT ACCOUNTING 

Unit-1: Introduction

Nature, Scope and Importance of Management Accounting; Difference between Financial Accounting and Management Accounting; Difference between Cost Accounting and Management Accounting; Cost Control, Cost Reduction, and Cost Management.

Unit-2: Budgeting and Budgetary Control

Concept of Budget and Budgetary Control; Objectives, Merits and Limitations of Budget Administration; Types of Budget: Fixed and Flexible Budgets, Zero-Base Budget, Programme and Performance Budget.

Unit-3: Standard Costing

Concept of Standard Cost and Standard Costing; Advantages, Limitations, and Application; Variance Analysis: Calculation of Material Variances, Labour Variances, and overhead Variances, Disposition of Variances.

Unit-4: Marginal Costing and Decision-Making

Concept of Marginal Costing, Differential Costing and Absorption Costing, Break-Even Analysis, Use of above Costs in Decision-Making; Make or Buy, Change of Product-Mix, Pricing and Determination of Shut-Down Point.

Unit-5: Responsibility Accounting

Concept and Approaches to Responsibility Accounting. Different Responsibility Centres Significance; Divisional Performance Measurement – Financial Measures.