Semester IICourse Code: SL GM 502Arun K. Agarwal, ACA, ACSManagement Accounting & ControlIBS - Gurgaon
Management Accounting & Control - Semester II – Total 30 SessionsSl NoTopicSessions1Introduction to Management AccountingWhat is MAC - Its Role & Scope - Interface with Fin Accounting & Cost Accounting - Tools & Techniques12Cost ConceptsTypes of Costs - Historical, Future, Standard, Prime, Direct & indirect, Controllable & Non Controllable, Conversion Cost etc13Cost Allocation Prime Cost Allocation - Distribution and Absorption of Overheads44Methods of CostingSingle or Output Costing - Job or Contract Costing - Process Costing - Operating Costing - Joint & By Products 45Cost Volume Profit AnalysisMarginal Costing - Contribution and Break Even Analysis - Application and Limitations of Cost Vol Profit Analysis36Decisions involving alternate choicesDifferential Costs - Make or Buy - Accepting an Order - Drop an Assy Line - Equipment Replacement - Construction etc47Cost Analysis and Pricing DecisionsNeed for Pricing Decisions - Objective of Pricing - Pricing Strategy - Factors impacting Pricing - Importance of Costs as a Pricing Tool28Budgeting & Budgetary ControlsBudgeting as a tool of Management Planning & Control - Uses and Importance - Budget Preparation39Standard Costing and Variance AnalysisImportance - Standard and Historical Costs - Process of developing standards & limitations - Variance Analysis310Responsibility AccountingPre requisites, Advantages & Disadvantages of RA - Controllable & Uncontrollable Costs - Responsibility Centers - Cost, Revenue, Profit and Inv Centers - Divisional Performance: appraisal, measurement - ROI & Residual Income211Strategic Cost ManagementMeaning of ABC Analysis - Value Chain Analysis - Target Costing - Life Cycle Costing - Quality Costing3
IntroductionLecture No 1
You have so far done Financial AccountingWhat does Financial Accounting Do? It records in a scientific manner the business transactions of an enterprise in a chronological sequence of dates. This exercise is called “Financial Accounting” and the records so created are called “Accounting Records” of an enterpriseWhat Objectives does Financial Accounting Serve?Determine the profit or loss earned or incurred by an enterprise in a defined period of time generally a year which is called the “Accounting Year”; ANDShows the Assets and Liabilities of the enterprise at the end of such period;Shows the inflows and outflows of “cash” during the “Accounting Year”Collectively these statements of Profits or Losses, Assets & Liabilities and Cash Flows are called “Financial Statements” of the enterprise.Are these enough for the Management?Though these are extremely important for the management of a business enterprise these fall short in meeting the management objectives, in some very important ways due to the limitations of the “Financial Accounting”
What are the limitations of Financial Accounting?
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