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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

  1. CO1: Interpret cost and management accounting theories; prepare cost sheets and quotations.
  2. CO2: Ascertain Material and Labor cost.
  3. CO3: Ascertain, allot, and apportion overheads.
  4. CO4: Assess and interpret financial statements for managerial decision-making.
  5. 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.
  • 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

See Complete Syllabus

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