Cost and Management Accounting

Unit – I

Introduction: Meaning, Objectives, Nature and Scope of management accounting, Difference between cost accounting and management accounting, Cost control and Cost reduction, Cost management.

Ratio Analysis: Meaning–Nature, Different Types of Ratios, Their Uses and Limitations, Computation of Various Types of Ratios – Liquidity Ratios, Solvency Ratios, Profitability Ratios, Turnover Ratios.

Unit – II

Analysis and Interpretation of financial Statements: Meaning- Types and Methods of Financial Analysis – Comparative statements – Trend Analysis – Common size statements.

Standard Costing: Standard Costing and Variance Analysis: Meaning of Standard Cost and Standard Costing, Advantages, Limitations and Applications. Variance Analysis – Material, Labour, Overheads and Sales Variances. 

Unit – III

Budgetary Control: Budgeting and Budgetary Control: Concept of Budget, Budgeting and Budgetary Control, Objectives, Merits, and Limitations. Budget Administration. Functional Budgets. Fixed and Flexible Budgets. Zero Base Budgeting. 

Unit – IV

Marginal Costing: Absorption versus Variable Costing: Distinctive features and Income Determination. Cost- Volume-Profit Analysis, Profit/Volume Ratio. Break-even Analysis Algebraic and Graphic Methods, Margin of Safety, Key Factor, Determination of Cost Indifference Point.