Accounting For Decision Making

Syllabus

BA4104: Accounting for Decision Making

Unit I: Financial Accounting                                                                                                                   9

Introduction to Financial, Cost and Management Accounting – Generally Accepted Accounting Principles– Double Entry System – Preparation of Journal, Ledger and Trial Balance. Preparation of Final Accounts: Trading, Profit and Loss Account and Balance Sheet - Reading the Financial Statements.

Unit II: Analysis of Financial Statements                                                                                              9

Financial Ratio Analysis, Interpretation of Ratio for Financial Decisions- Dupont Ratios – Comparative Statements - Common Size Statements. Cash Flow (as per Accounting Standard 3) and Funds Flow Statement Analysis – Trend Analysis.

Unit III: Cost Accounting                                                                                                                        9

Cost Accounts – Classification of Costs – Job Cost Sheet – Job Order Costing – Process Costing – (Excluding Interdepartmental Transfers and Equivalent Production) – Joint and By Product Costing – Activity Based Costing, Target Costing.

Unit IV: Marginal Costing                                                                                                                      9

Marginal Costing and Profit Planning – Cost, Volume, Profit Analysis – Break Even Analysis – Decision Making Problems -Make or Buy Decisions -Determination of Sales Mix - Exploring New Markets - Add or Drop Products -Expand or Contract.

Unit V: Budgeting and Variance Analysis                                                                                             9

Budgetary Control – Sales, Production, Cash Flow, Fixed and Flexible Budget – Standard Costing and Variance Analysis – (Excluding Overhead Costing) -Accounting Standards and Accounting Disclosure Practices in India.