COURSE STRUCTURE

Course Code FET2005B

Course Category HSS
Course Title Finance and Costing
Teaching Scheme and Credits L T Laboratory Credits
Weekly load hrs 2 0 0 2+0+0 = 2
Pre-requisites: Industrial Engineering and Management, Arithmatics, Basic Mathematics

Course Objectives:

1. Knowledge (i) To understand the concepts of Financial Management and its application in
decision making
(ii) To understand Generally Accepted Cost Accounting techniques

2. Skills (i) To develop capability to analyze financial and costing principles

3. Attitude (i) To develop ability to determine analysis and classification of cost components
to facilitate managerial decision making
Course Outcomes: Demonstrable competencies the students will learn after doing this course
1. Understand and explain the conceptual framework of Cost & Management Accounting
(CL-II)
2. Explain the basic concepts and processes in determination of products and services
cost(CL-II)
3. Identify and apply the concepts of Financial Management(CL-I)
Learning Resources:

Concept of Cost and Overhead Costs

Cost, Cost Centre, Cost Unit, Elements of Cost: Material Cost., Labour Cost: Direct& indirect cost,
Cost sheet. Overheads: Classification, collection of overheads, Primary and Secondary
apportionment of overheads, absorption of overheads - Machine hour and labour hour rate. Under
and over absorption of overheads.
Standard and Marginal Costing
Concept, development and use of standard costing, variance analysis. Marginal Costing- Marginal
Costing in decision-making. Cost Volume Profit Analysis, Concept of Break-Even, P/V Ratio and
Margin of Safety, (ROI, IRR, NPV)

Dr. Prasad Khandekar

Dean, FoET
Financial Management and Cash Flow
Nature and Scope of Finance Function; Scope and Functions of Financial Management, Financial
Planning and Forecasting. Budgets & Budgetary Control: Types of Budget, Profit and Loss Account
and Balance Sheet, Cash Flow Statement.

Working Capital Management

Introduction to Working capital, Concept of Working Capital, Assets and liabilities, Fixed and
current assets, types of working capital, sources of working capital. Calculation of working capital.
Ratio Analysis
Concept and Introduction to ratios, Classification of ratios, Objectives, Key financial Ratios-
Solvency ratios, Liquid ratios, Profitability ratios, Efficiency ratios. Ratio Analysis significance and
its limitations.

Reference Books:
1. Prasanna Chandra,
McGraw Hill Education,
2.
Chennai, 2013
3. on 2, 2002, Tata
McGraw Hill Education
4.
5.

Supplementary Reading:
1. Paresh P. Shah, Financial Management, Reprint No. 2 2011, Biztantra, New Delhi,

International Thomson Business; 6th Revised edition, Chapman and Hall London

MOOCs: https://www.mooc-list.com/course/financial-planning-open2study

Pedagogy: Chalk and talk, PPT presentations, Videos, and e- resources.

Assessment Scheme:

Class Continuous Assessment (CCA) : 60 Marks (60% of Total Marks)

Assignments Test Presentations/Any

other
20 Marks 20 Marks 20 Marks

Dr. Prasad Khandekar

Dean, FoET
Term End Examination : 40 Marks (40% of Total Marks)

Module Workload in Hrs

Contents
No. Theory Lab Assess
1 Concept of Cost and Overhead Costs 6 NA
2 Standard and Marginal Costing 6 NA
3 Financial Management and Cash Flow 6 NA
4 Working Capital Management 6 NA
5 Ratio Analysis 6 NA

Prepared By Checked By Approved By

Prof. Surendra H Barhatte Prof. Sanjay Rumde Dr. G M Kakandikar

Asst Proffessor Asst Professor Professor & HoS

Dr. Prasad Khandekar

Dean, FoET