Management Accounting

In the present complex business world, Management Accounting has become an integral part and useful tool of a management system. In fact, management accounting represents a happy blending of two older professions of ‘Management’ and ‘Accounting’, which leads to the success of a business concern through accounting control and managerial efficiency. The present text has been planned and designed to cope with the needs of BBA students and to present the subject in simple language and lucid style.

Salient features of the Management Accounting Book:

• The subject-matter has been arranged and systematized strictly according to course prescribed.
• The language and style of presentation are very simple and the subject-matter has been divided into various headings and sub-headings so as to give flow in studying this numerical subject.
• Both theoretical and numerical aspects of the subject have been given due importance.
• The numerical illustrations have been carefully graded with supporting theoretical background. At many places, explanatory notes have also been given to clarify the working of solution.
• Numerical illustrations and questions have been arranged in a systematic and scientific sequence from simple to complex.
• Illustrations and questions both have been arranged in an identical sequence so that students can easily solve the questions after understanding the illustration in the same order.
• In the selection of illustrations and questions priority has been given to university examination papers so that students may make practice according to that standard.
• Short answer and objective type questions (Theoretical & Numerical) have also been incorporated according to a new examination pattern of different universities.
• Standard but simple formulae have been used in different chapters and at the end of each chapter, all formulae relevant to that chapter have been given at one place.
• An important feature of the revised edition of this book is that all relevant chapters have been re-drafted as per revised format of Balance Sheet and Statement of Profit & Loss given in Schedule III of the Companies Act, 2013. In this context, a terminology has also been used as per new formats.

Management Accounting Syllabus For B.B.A. Semester IV of Devi Ahilya University, Indore

• Basics of Management Accounting: Meaning and definition of Management Accounting, Evolution of Management Accounting, Nature and Scope of Management Accounting, Relationship of Management Accounting with other Branches of Accounting and other Disciplines of Studies.
• Budgetary Control: Meaning of Budget, Budgetary Control and its use as a management tool, Functions of Budgets, Difference between Budgets and Forecasts, Planning Process and Budgetary Process, Stages in Budget Process, Various Types of Budgets, Zero Based Budgeting, Activity-Based Budgeting, Fixed and Flexible Budgets, Behavioral Aspects in Budgeting.
• Standard Costing: Introduction to Standard Costing, Cost Standards and their types, Standard Costing and Budgetary Control, Operation of Standard Costing System, Establishing Standard Costs, Analysis, Interpretation, Presentation and Disposal of variances.
• Marginal Costing as a Tool for Decision Making: Make or Buy Decision, Change in product Mix, Pricing Decisions, Exploring a New Market, Shut-down Decisions

Management Accounting Book Contents

1. Management Accounting (An Introduction)
2. Budget and Budgeting
3. Budgetary Control
4. Fixed and Flexible Budgeting
5. Cash Budget
6. Sales and Production Budget
7. Zero Base Budgeting
8. Activity-Based Costing
9. Standard Costing (Variance Analysis)
10. Variance Analysis (Material and Labour Variance)
11. Overhead (Two-Way) Variance Analysis
12. Marginal Costing (as a tool for Decision Making)