COST AND MANAGEMENT ACCOUNTING

Objectives:
1. To familiarize the students with cost records / statements and principles underlying them
and to develop their skills in understanding and appreciating cost information.
2. To acquaint them in brief with cost and management accounting mechanics, process and
system, but emphasis is laid on sound concepts and their managerial implications.
3. To develop an appreciation about the utility of cost information as a vital input for
management information and decision making process.
CONTENTS:

UNIT-1 Introduction to Cost Accounting (8 Hours)

(a) Meaning & Objective of Cost Accounting (1 Hour)

(b) Comparison of Cost and Financial Accounting (1 Hour)

(c) Elements of Cost, Cost Unit, Cost Centre (1.5 Hours)

(d) Classification of Cost (1.5 Hours)

(e) Preparation and estimation of Cost- sheets (Numerical) (3 Hours)

Learning Objective: After studying this chapter students would be able to understand cost, and
preparation of cost sheet.

UNIT-2 Budgetary Control (6 Hours)

(a) Meaning of Budget, Budgeting, and Budgetary Control Standard costing vs

Budgetary Control (1 Hour)

(b) Classification of Budgets (1 Hour)

(c) Master Budget (Illustrate the Master Budget with an example) (1.5 Hours)

(d) Zero Based Budgeting (1 Hour)

(e) Fixed and Flexible Budgets (Numerical) (1.5 Hours)

Learning Objective: After learning this chapter, students would be aware with various budgets
and its importance. Practical problem covers Cash Budget and Fixed &Flexible Budgets.

QUIZ: It covers from Unit no 1 & 2 of the syllabus.

UNIT-3 Marginal Costing (11 Hours)

(a) Meaning of Marginal Costing & CVP Analysis (Numerical) (1 Hour)

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 (b) Break Even Analysis (Numerical) (1.5 Hours)

(c) Decision making with the help of marginal costing (1 Hour)

(d) Fixation of selling price (Numerical) (1.5 Hours)

(e) Exploring new markets (Numerical) (1.5 Hours)

(f) Export sales (Numerical) (1.5 Hours)

(g) Make or buy decision (Numerical) (1.5 Hours)

(When key factor is not given and when key factor is given)

(h) Product mix decisions (Numerical) (1.5 Hours)

Learning Objective: To make students aware with Marginal Costing and CVP analysis,
practical problems covered on CVP analysis, BEP, P/V Ratio, Margin of Safety, limiting (key)
factor, various decision making techniques. Practical problem covers all the decisions.

CLASS TEST: It covers from Unit no 1 to 3 of the syllabus.

UNIT-4 Standard Costing and variance Analysis (4 Hours)

(a) Meaning of Standard Costing (0.5 Hour)

(b) Advantage &Limitations of Standard Costing (0.5 Hour)

(c) Variance Analysis (0.5 Hours)

(d) Material Variances (MCV, MPV, MUV) (Numerical) (1.5 Hours)

(e) Labor Variances (LRV, LCV, LEV) (Numerical) (1 Hour)

Learning Objective: After learning this chapter, students would be aware with how to calculate
the variances and what are the reasons for difference between actual output and standard output.
Practical problem covers Material and Labor variances.

CASE STUDY PRESENTATION / QUIZ: It covers from Unit no 1 to 4 of the syllabus.

UNIT-5 Advanced Cost Management Techniques (3 Hours)

(a) Activity Based Costing, Responsibility Accounting (1.5 Hours)

(b) Target Costing, Life Cycle Costing (1.5 Hours)

Learning Objective: After learning this chapter, students would be aware with various
Contemporary issues in costing and the decision making by using management accounting.

END-TERM EXAMINATIONS: It covers from Unit no 1 to 5 of the syllabus.

Total (32 Hours)

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Text Book:

1. Cost and Management Accounting: Theory, Problems and Solutions by M N Arora –

Himalaya Publishing House

Reference Books:
1. Accounting for Management by Dr. Jawahar Lal - Himalaya Publishing House
2. Cost & Management Accounting by M N Arora, Vikas Publication, 10th Edition.
3. Introduction to Management Accounting by Horngreen, Sundem, Stratton, Burgstahler,
Schatzberg - Pearson
4. Cost & Management Accounting Text & Cases – Ravi M Kishor – Taxmann – 5th
Edition
5. Accounting for Business Managers- Dr. Sakshi Vasudeva - Himalaya Publishing
House.
6. Accounting for Management – S.N. Maheshwari, Sunil K Maheshwari, Sharad K
Maheshwari, Vikash Publications, and 3rd Edition.

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