DEPARTMENT - BUSINESS AND MANAGEMENT (BGR)
COURSE PACK
for
COST AND MANAGEMENT ACCOUNTING - BBA431
BBA431 - COST AND MANAGEMENT ACCOUNTING
Total Teaching Hours For Semester : 60 No of Lecture Hours/Week : 4
Max Marks : 100 Credits : 4
Course Description and Course Objectives:
This course covers the fundamental concepts and various aspects in and of cost as well as management accounting. This course discusses how to prepare cost sheet, costing for materials, labour cost and overheads. This course also talks about financial statement analysis using various tools like comparative and common size Income Statements and Balance Sheet, Trend Analysis, Ratio Analysis, Cash Flow Statement, Budgets and Budgetary Control. It also throws some light on Management Reporting in general. And thus this course as a part of Business administration programme provides fundamental knowledge and basic understanding on various methods, tools and techniques of cost and management accounting helpful for financial decision making required for a budding professional in the domain of accounting and finance. · To familiarize the learners with the basic concepts and processes used to determine product costs. · To make known the students in ascertaining Material, Labour and Overhead cost · To enrich the knowledge of the learners in knowing and applying various tools like ratio analyis, cash flow statemet, marginal costing for analysing the financial statements for managerial information · To provide with the basic understanding of budgetary control
Course Outcomes
1.CO1 - Interpret the relevant theories of cost and management accounting and prepare cost sheet and quotations. 2.CO2 - Ascertain Material and Labor cost 3.CO3 - Ascertain, allot and apportion of the overheads 4.CO4 - Assess and interpret the financial statements for managerial decision making 5.CO5 - Examine and understand management reports
Unit-1 Teaching Hours:8
Syllabus Unit Mapping
1.Development Needs:National,
2.Skill Focused:Employability,
3.Integration of Cross Cutting Issues:Professional Ethics,
Introduction to Cost and management accounting
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 Teaching Hours:10
Syllabus Unit Mapping
1.Development Needs:National,
2.Skill Focused:Employability,
3.Integration of Cross Cutting Issues:Professional Ethics,
Material Cost. Labour Cost and Overheads
Material Cost: direct and indirect material cost, Inventory control techniques-stock levels, EOQ, ABC analysis. Issue of materials to production- pricing methods-FIFO, LIFO and Average methods Labor cost: direct and indirect labour cost-methods of payment of wages including incentive plans -Halsey and Rowan plans, Taylor's Piece Rate method. Overheads: features, classification, methods of allocation and apportionment of overheads, primary and secondary distributions (Repeated & step ladder method only)
Unit-3 Teaching Hours:8
Syllabus Unit Mapping
1.Development Needs:National,
2.Skill Focused:Employability,
3.Integration of Cross Cutting Issues:Professional Ethics,
Marginal Costing
Meaning - Importance - Marginal Cost Equation - Difference between Marginal costing and Absorption costing - Applications of Marginal costing
Unit-4 Teaching Hours:7
Syllabus Unit Mapping
1.Development Needs:National,
2.Skill Focused:Employability,
3.Integration of Cross Cutting Issues:Professional Ethics,
Budgetary control
Meaning and importance - Types of Budgets, practical problems- Flexible Budget and cash Budget
Unit-5 Teaching Hours:10
Syllabus Unit Mapping
1.Development Needs:National,
2.Skill Focused:Employability,
3.Integration of Cross Cutting Issues:Professional Ethics,
Financial Statement Analysis
Comparative Income Statements and Balance Sheets, Common size Income Statements and Balance Sheet Trend Analysis, Ratio Analysis Introduction, Classification and Interpretation of Ratios, Problems on ratio analysis
Unit-6 Teaching Hours:13
Syllabus Unit Mapping
1.Development Needs:National,
2.Skill Focused:Employability,
3.Integration of Cross Cutting Issues:Professional Ethics,
Cash flow statement
Introduction, Concept of Cash, Sources of cash flow Cash from operation, cash from Financing and cash from investment, Inflow and outflow of cash Preparation of cash flow statements- practical problems
Unit-7 Teaching Hours:4
Syllabus Unit Mapping
1.Development Needs:National,
2.Skill Focused:Employability,
3.Integration of Cross Cutting Issues:Professional Ethics,
Management Reporting
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 Units Maximum marks Weightage Total Marks 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