; TAMIL NADU NATIONAL LAW UNIVERSITY

(A University established under the Tamil Nadu Act No. 9 of 2012)

Dindigul Main Road, Navalurkuttappattu
Tiruchirappalli 620 027
Tamil Nadu, India

B.Com. LL.B. (Hons)

Semester IV

COURSE SYLLABUS

COST AND MANAGEMENT ACCOUNTING

Course Objectives

This course is to highlight the importance of cost in the business decisions and to impart the
knowledge on costing methods and techniques. This course also explain the approach of
management accounting in taking financial decisions.

Learning Outcomes

Students will be able to :

 analyse and provide recommendations to improve the operations of organizations

through the application of cost and management techniques.
 know how to apply techniques associated with costing systems, cost management
systems, budgeting systems and performance measurement systems.
 appraise the costs and benefits of different conventional and modern costing system.
 Understand ambiguity in managerial and organizational problem solving

Teaching Methods

 Brain Storming
 Group Discussion
 Quiz Method
 Lecture Method
 Solving Problem

Cost Accounting MODULE 1

Meaning & Definition of Cost, Costing and Cost Accounting - Nature, Scope, Benefits and
Limitations of Costing - Elements, Types and Methods of Costing – Difference between cost
accounting and financial accounting - Preparation of cost sheets – Tenders and quotations
Material Cost MODULE 2

Cost of Material, inventory control techniques - EOQ – ABC Analysis – VED Analysis - Pricing
of issue of inventory (FIFO, LIFO, Simple Average methods only)- Integrated Accounting
system in Inventory Management.

Labour Cost MODULE 3

Meaning – Types: Direct Labour, Indirect Labour - Labour turnover- Time Rate System, Piece
Rate System, Incentive Systems (Halsey plan, Rowan Plan & Taylor’s differential Piece Rate
System) – Problems. Overheads: Meaning, Classification, Allocation, Apportionment and
Absorption of overheads

Management Accounting MODULE 4

Management accounting – Meaning, nature, scope and functions, need, importance and
limitations – Management Accounting vs. Cost Accounting, Management Accounting vs.
Financial Accounting- Analysis and Interpretation of financial statements – Ratio Analysis –
Interpretation, benefits and limitations. Role of Enterprise Performance Management ( EPM ) in
Management Accounting. Use of MS- Excel in Management Accounting

MODULE 5

Funds Flow Statement: meaning, objectives, limitations and accounting procedure - Cash Flow
Statement: meaning, objectives, limitations and accounting procedure - Marginal Costing:
meaning, advantages - Cost-Profit-Volume Analysis: Break Even Point, Margin of Safety, P/V
Ratio and Concept of key factor, Budget and Budgetary Control, Standard Costing.

Use of Tally in Cost and Management Accounting

Cases to be discussed in the class

1. Financial Statement Analysis of Tata Consultancy Services Limited
2. Liquidity Assessmnet of Infosys Limited
3. Hero Motor Corporation Limited- Profitability Analysis
4. Short term liquidity- An insight into Hero Motor Corporation Limited.
5. Liquidity Management at Tata Motors Limited
6. Comparative Ratio Analysis: A Case Study of on RS Education Solutions Private Ltd.

Essential Readings

1. S.P. Iyengar, Cost Accounting, Sultan Chand & Sons, New Delhi, 2010.
2. S.P.Jain, K.L. Narang, Cost Accounting, Kalyani Publishers, Eighth Edition Reprint2014.
3. Dr. S. N. Maheswari, CA Sharad K. Maheswari,Principles of Management AccountingSultan
Chand & Sons, Seventeenth Revised Edition Reprint 2014.
Additional Readings

1. Dr. S.N. Maheswari, Principles of Cost Accounting, Sultan Chand & Sons, New Delhi, Latest
Edition.
2. V.K.Saxena and C.D. Vashist, Cost Accounting,Sultan Chand & Sons, Latest Edition.
3. R.S.N. Pillai and V. Bagavathi, Cost Accounting,S.Chand& Sons, New Delhi, Latest
Edition.
4. S.N.Maheshwari& Mittal S.N.,Cost Accounting ,Shree Mahavir Book Depot, NewDelhi,
Latest Edition
5. Khan, M.Y. and P.K. Jain, Management Accounting,Tata McGraw Hill, Publishing Co., New
Delhi , Latest Edition.
6. S.N Maheswari, Management Accounting – Sultan Chand & Sons, New Delhi,Revised
Edition.
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