MEDIA
mathematics
HEALTH ENGINEERING
DESIGN
management
EDUCATION
MUSIC
GEOGRAPHY E
ART
C PHYSICS
O
law
L
O
agriculture
BIOTECHNOLOGY G
Y
LANGUAGE
CHEMISTRY history
MECHANICS
psychology
Management Financial Accounting
,Subject: MANAGEMENT AND FINANCIAL ACCOUNTING Credits: 4
SYLLABUS
Introduction to Financial Accounting
Introduction; Scope and Objectives; Branches of Accounting; Accounting Principles and Standards
Financial Accounting Framework
Journalizing Transactions: Recording of Transaction, Advantages of Journal, Classification of Accounts and its
Rules, Compound Entries; Ledger: Introduction, Posting and its Rules; Trial Balances: Trial Balance
Preparation, Errors Disclosed by Trial Balance, Methods of Allocating Errors in Trial Balance.
Basic Principles of Preparing Final Account
Capital Expenditure; Revenue Expenditure; Deferred Revenue Expenditure; Capital Receipts; Income
Statements: Profit and Loss Statement; Balance Sheet; Final Accounts: Adjustments.
Concept of Management Accounting Principles
Functions and Scope of Management Accounting; its Limitations; Management Accountant: Functions; Basic
Cost Concepts; Components of Total Cost; Elements of Cost and Cost Sheet; Methods, Systems and Techniques
of Costing.
Tools of Financial Analysis Budgets:
Introduction, Advantages and Disadvantages, Essentials of Budgetary Control, Budget Manual and its Working,
Budget Key Factor; Fixed and Flexible Budgets; Functional and Master Budgets: Sales and Cash Budget; Zero
Based and Incremental Budgets.
Suggested Reading:
1. Financial Accounting: A Managerial Perspective, HPH by Narayanswamy, Publisher: Prentice Hall of
India Private Limited
2. Financial Accounting for Business Managers, by Bhattacharyya, Ashish K Publisher: Prentice Hall of
India Private Limited
3. Financial Accounting for Management: Text & Cases by Subhash Sharma, Publisher: Macmillan India
Limited.
4. Management Accounting - Concepts & Applications by Kothari G, Publisher: Macmillan India Limited.
, MANAGEMENT AND FINANCIAL ACCOUNTING
MANAGEMENT AND FINANCIAL ACCOUNTING
COURSE OVERVIEW
A manager needs information – quantitative and qualitative –
The students on completion of the course shall develop the
for taking decisions and managing the firm efficiently and
following skills and competencies:
effectively. Accounting, besides providing data for published
a. Prepare cost sheet.
financial statements for external uses, is an important source of
b. Make decisions using marginal costing techniques
financial information for internal decision – making. The
purpose of this subject is to explain the way in which account- c. Prepare budgets.
ing information can be used by the manager in performing his d. Analyse the causes of variances.
managerial functions of planning and control. e. Gain a basic knowledge of the contemporary issues in
management accounting.
The focus of this course pack is managerial. Its purpose is not
to train the reader in the mechanics and procedures of account-
ing. Rather, it intends to develop reader’s skills in interpreting
and analyzing accounting statements and data. Attempts to
show the utility of accounting information in solving problems
that the manager frequently confronts in managing the firm’s
internal operations.
i
, CONTENT
MANAGEMENT AND FINANCIAL ACCOUNTING
Topic Page No.
Lesson 1 Introduction to Management Accounting
Lesson 2 Introduction to Management Accounting 20
Lesson 3 Techniques of Costing
37
Lesson 5 Cost Sheet
Lesson 6 Fundamentals of Financial Accounting 56
Lesson 7 Concepts and Conventions 69
Lesson 8 Capital and Revenue Expenditure 87
Lesson 9 Tutorial 96
Lesson 10 The Accounting Cycle 108
Lesson 11 Reading, P & L Account And Balance Sheet 135
Lesson 12 CVP Analysis for a Multi-Product firm 169
Lesson 13 What-if Analysis 175
Lesson 14 Pricing and Decision-making 180
Lesson 15 Budgets 192
Lesson 16 Fixed and Flexible Budgets 201
Lesson 17 Functional and Master Budgets 209
Lesson 18 Zero-based and Incremental Budgets 226
Lesson 19 Standard Cost and its determination 246
Lesson 20 Cost Variance Analysis 253
Lesson 21 Practical Problems – Material & Cost Variance Analysis 258
Lesson 22 Sales Variance Analysis 264
Lesson 23 Practical Problems - Sales Variance Analysis 267
Lesson 24 Budgetary Control and Monitoring 274
Lesson 25 Budget Variance Analysis 288
mathematics
HEALTH ENGINEERING
DESIGN
management
EDUCATION
MUSIC
GEOGRAPHY E
ART
C PHYSICS
O
law
L
O
agriculture
BIOTECHNOLOGY G
Y
LANGUAGE
CHEMISTRY history
MECHANICS
psychology
Management Financial Accounting
,Subject: MANAGEMENT AND FINANCIAL ACCOUNTING Credits: 4
SYLLABUS
Introduction to Financial Accounting
Introduction; Scope and Objectives; Branches of Accounting; Accounting Principles and Standards
Financial Accounting Framework
Journalizing Transactions: Recording of Transaction, Advantages of Journal, Classification of Accounts and its
Rules, Compound Entries; Ledger: Introduction, Posting and its Rules; Trial Balances: Trial Balance
Preparation, Errors Disclosed by Trial Balance, Methods of Allocating Errors in Trial Balance.
Basic Principles of Preparing Final Account
Capital Expenditure; Revenue Expenditure; Deferred Revenue Expenditure; Capital Receipts; Income
Statements: Profit and Loss Statement; Balance Sheet; Final Accounts: Adjustments.
Concept of Management Accounting Principles
Functions and Scope of Management Accounting; its Limitations; Management Accountant: Functions; Basic
Cost Concepts; Components of Total Cost; Elements of Cost and Cost Sheet; Methods, Systems and Techniques
of Costing.
Tools of Financial Analysis Budgets:
Introduction, Advantages and Disadvantages, Essentials of Budgetary Control, Budget Manual and its Working,
Budget Key Factor; Fixed and Flexible Budgets; Functional and Master Budgets: Sales and Cash Budget; Zero
Based and Incremental Budgets.
Suggested Reading:
1. Financial Accounting: A Managerial Perspective, HPH by Narayanswamy, Publisher: Prentice Hall of
India Private Limited
2. Financial Accounting for Business Managers, by Bhattacharyya, Ashish K Publisher: Prentice Hall of
India Private Limited
3. Financial Accounting for Management: Text & Cases by Subhash Sharma, Publisher: Macmillan India
Limited.
4. Management Accounting - Concepts & Applications by Kothari G, Publisher: Macmillan India Limited.
, MANAGEMENT AND FINANCIAL ACCOUNTING
MANAGEMENT AND FINANCIAL ACCOUNTING
COURSE OVERVIEW
A manager needs information – quantitative and qualitative –
The students on completion of the course shall develop the
for taking decisions and managing the firm efficiently and
following skills and competencies:
effectively. Accounting, besides providing data for published
a. Prepare cost sheet.
financial statements for external uses, is an important source of
b. Make decisions using marginal costing techniques
financial information for internal decision – making. The
purpose of this subject is to explain the way in which account- c. Prepare budgets.
ing information can be used by the manager in performing his d. Analyse the causes of variances.
managerial functions of planning and control. e. Gain a basic knowledge of the contemporary issues in
management accounting.
The focus of this course pack is managerial. Its purpose is not
to train the reader in the mechanics and procedures of account-
ing. Rather, it intends to develop reader’s skills in interpreting
and analyzing accounting statements and data. Attempts to
show the utility of accounting information in solving problems
that the manager frequently confronts in managing the firm’s
internal operations.
i
, CONTENT
MANAGEMENT AND FINANCIAL ACCOUNTING
Topic Page No.
Lesson 1 Introduction to Management Accounting
Lesson 2 Introduction to Management Accounting 20
Lesson 3 Techniques of Costing
37
Lesson 5 Cost Sheet
Lesson 6 Fundamentals of Financial Accounting 56
Lesson 7 Concepts and Conventions 69
Lesson 8 Capital and Revenue Expenditure 87
Lesson 9 Tutorial 96
Lesson 10 The Accounting Cycle 108
Lesson 11 Reading, P & L Account And Balance Sheet 135
Lesson 12 CVP Analysis for a Multi-Product firm 169
Lesson 13 What-if Analysis 175
Lesson 14 Pricing and Decision-making 180
Lesson 15 Budgets 192
Lesson 16 Fixed and Flexible Budgets 201
Lesson 17 Functional and Master Budgets 209
Lesson 18 Zero-based and Incremental Budgets 226
Lesson 19 Standard Cost and its determination 246
Lesson 20 Cost Variance Analysis 253
Lesson 21 Practical Problems – Material & Cost Variance Analysis 258
Lesson 22 Sales Variance Analysis 264
Lesson 23 Practical Problems - Sales Variance Analysis 267
Lesson 24 Budgetary Control and Monitoring 274
Lesson 25 Budget Variance Analysis 288
