Syllabus
COST AND MANAGEMENT ACCOUNTING - BBA431¶
Course Information¶
| Department | Business and Management (BGR) |
|---|---|
| Course Code | BBA431 |
| Total Teaching Hours/Sem | 60 |
| Lecture Hours/Week | 4 |
| Max Marks | 100 |
| Credits | 4 |
Course Description¶
This course explores the fundamentals of cost and management accounting, focusing on cost sheet preparation, materials, labor, overheads costing, financial statement analysis, and management reporting, which are essential for financial decision-making in the accounting and finance domain.
Course Objectives¶
- Familiarize learners with concepts and processes to determine product costs.
- Ascertain Material, Labor, and Overhead costs.
- Enrich knowledge in applying various tools for financial statement analysis.
- Provide basic understanding of budgetary control.
Course Outcomes¶
- CO1: Interpret cost and management accounting theories; prepare cost sheets and quotations.
- CO2: Ascertain Material and Labor cost.
- CO3: Ascertain, allot, and apportion overheads.
- CO4: Assess and interpret financial statements for managerial decision-making.
- CO5: Examine and understand management reports.
Units Overview¶
Unit 1: Introduction to Cost and Management Accounting (Teaching Hours: 8)¶
- Definitions, Features, Objectives, Functions, Scope
- Advantages and Limitations
- Relationship and Differences Between Cost Accounting, Management Accounting, and Financial Accounting
- Cost Concepts-Cost Classification
- Elements of Cost
- Preparation of Cost Sheet and Quotation
Unit 2: Material Cost, Labour Cost and Overheads (Teaching Hours: 10)¶
- Material Cost: Direct and Indirect Material Cost, Inventory Control Techniques, Stock Levels, EOQ, ABC Analysis, Issue of Materials to Production, Pricing Methods (FIFO, LIFO, Average)
- Labor Cost: Direct and Indirect Labor Cost, Methods of Payment of Wages, Incentive Plans (Halsey and Rowan Plans, Taylor's Piece Rate Method)
- Overheads: Features, Classification, Methods of Allocation and Apportionment, Primary and Secondary Distributions (Repeated & Step Ladder Method Only)
Unit 3: Marginal Costing (Teaching Hours: 8)¶
- Meaning, Importance
- Marginal Cost Equation
- Difference Between Marginal Costing and Absorption Costing
- Applications of Marginal Costing
Unit 4: Budgetary Control (Teaching Hours: 7)¶
- Meaning, Importance
- Types of Budgets, Practical Problems
- Flexible Budget and Cash Budget
Unit 5: Financial Statement Analysis (Teaching Hours: 10)¶
- Comparative Income Statements and Balance Sheets
- Common Size Income Statements and Balance Sheets
- Trend Analysis
- Ratio Analysis: Introduction, Classification, Interpretation, Problems
Unit 6: Cash Flow Statement (Teaching Hours: 13)¶
- Introduction, Concept of Cash
- Sources of Cash Flow: Operations, Financing, Investments
- Inflow and Outflow of Cash
- Preparation of Cash Flow Statements: Practical Problems
Unit 7: Management Reporting (Teaching Hours: 4)¶
- Procedures and Utility
- Sample Reports
Essential References¶
- Arora, M.N (2016). Cost and Management Accounting, New Delhi: Himalaya Publishing House.
Recommended References¶
- SP Jain & Narang. Cost and Management Accounting, Kalyani Publishers, New Delhi.
Evaluation Pattern¶
| Component | Description | Max Marks | Weightage | Total in Final Grade |
|---|---|---|---|---|
| CIA1 | Group Assignment | 20 | 100% | 20 |
| CIA2 | Mid Semester Examination | 50 | 50% | 25 |
| CIA3 | Individual Assignment | 20 | 100% | 20 |
| ESE | End Semester Examination | 50 | 60% | 30 |
| Attendance | 5 | 100% | 5 | |
| Total | 100 | 100 |
See Complete Syllabus¶
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