Management Accounting
- Nature and Scope of Management Accounting
Meaning, objectives, nature and scope of management accounting, Difference between different forms of accounting ––Cost, Financial and Management accounting, Cost control and Cost reduction, Cost management.
- Absorption Costing versus Variable(Marginal) Costing
Concept of marginal cost and marginal costing; Absorption versus Variable Costing: Distinctive features and income determination;
- Cost-Volume-Profit Analysis
Cost-volume-profit analysis; Break-even analysis-using mathematical and graphical approaches; Profit-volume ratio, angle of incidence, margin of safety, key factor, determination of cost indifference point, Cash break-even point and Composite break-even point
- Decision Making
Steps in Decision Making Process, Concept of Relevant Costs and Benefits, Various short -term decision making situations –profitable product mix, Acceptance or Rejection of special/ export offers, Make or buy, Addition or Elimination of a product line, sell or process further, operate or shut down. Pricing Decisions: Major factors influencing pricing decisions, Various methods of pricing.
- Budgeting and Budgetary Control
Budgeting and Budgetary Control: Concept of budget, budgeting and budgetary control; Objectives, merits and limitations; Budget Administration; Functional Budgets; Fixed and Flexible budgeting; Zero base budgeting; Programme and Performance budgeting.
- Standard Costing and Variance Analysis
Standard Costing and Variance Analysis: Meaning of standard cost and standard costing; advantages, limitations and applications; Variance Analysis –material, labour, overheads and sales variances; Disposition of variances; Control ratios.
- Performance Measurement
Responsibility Accounting: Concept, Significance, Different Responsibility Centres; Divisional Performance Measurement: Financial and Non-Financial measures; Transfer pricing.
