Managerial Accounting

Unit

Contents

Sessions

1

Basic Concepts:

Forms of Business Organization. Meaning and Importance of Accounting in Business Organization, Basic Concepts and Terms used in Accounting, Capital & Revenue Expenditure, Capital & Revenue Receipts, Users of Accounting Information. Accounting Concepts and Conventions, Fundamental Accounting Equation, Journal, Ledger and Trial Balance.

(4+2)

2

 Financial Statements:

Meaning of Financial Statements, Importance and Objectives of Financial Statements. Preparation of Final Accounts of Sole Proprietary Firm.  

(7+2)

3

Cost Accounting:

Basic Concepts of Cost Accounting, Objectives, Importance and Advantages of Cost Accounting, Cost Centre, Cost Unit, Elements of Cost, Classification and Analysis of Costs, Relevant and Irrelevant Costs, Differential Costs, Sunk Cost, Opportunity Cost, Preparation of Cost Sheet.

(8+2)

4

Short Term Business Decision Techniques – Marginal Costing:

Meaning, Principles, Advantages and Limitations, Contribution, P/V Ratio, Break-Even Point (BEP), Cost Volume Profit (CVP) Analysis, Short Term Business Decisions–Product Mix Decisions, Make or Buy (Outsourcing) Decisions, Accept or Reject Special Order Decisions, Shutting Down Decisions.

(8+2)

5

 Exercising Control – Budgetary Control & Standard Costing: Budgetary Control:

Meaning of Budget and Budgeting, Importance, Advantages and Disadvantages, Functional Budgets–Raw Material Purchase & Procurement Budget, Cash Budget and Flexible Budget. Standard Costing: Meaning, Importance, Advantages and Disadvantages, Cost Variance Analysis. Material Variances – Material Cost Variance, Material Rate Variance, Material Usage Variance, Material Mix Variance and Material Yield Variance. Labour Variances –Labour Cost Variance, Labour Rate Variance, Labour Efficiency Variance, Labour Mix Variance, Labour Idle Time Variance and Labour Yield Variance.

(8+2)