Management & Cost 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 & Cost’ and ‘Accounting’, which leads to the success of a business concern through accounting control and managerial efficiency.

Salient features of the Management & Cost Accounting book:

• The subject-matter has been arranged and systematized strictly according to the course prescribed for B.Com. (Hons.) The third year of the yearwise syllabus.
• 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.
• 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 a 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.

Management & Cost Accounting Syllabus For B.Com. III Year of Awadhesh Pratap Singh University Rewa, Barkatullah University Bhopal, Rani Durgavati Vishwavidyalaya Jabalpur, Vikram University Ujjain, Dr. Harisingh Gour University Sagar

Unit – I Management Accounting: Meaning, Nature, Scope, Functions, and Role of Management Accounting in Decision Making, Management Accounting vs. Financial Accounting and Cost Accounting. Tools and techniques of Management Accounting. Financial Statement: Meaning, Importance, and Limitations, Objectives, and methods of Financial Statements Analysis,

Unit – II Ratio Analysis, Classification of Ratios – Profitability Ratios, Turnover Ratios, and Financial Ratios, Advantages of Ratio Analysis, Limitations of Accounting Ratios, Trend Analysis, Fund Flow Statement, Cash Flow Statement (As per Indian Accounting Standard-3).

Unit – III Process Cost – Concepts, Types, and Methods, Standard Cost – Variance Analysis, Concept, and Types.

Unit – IV Absorption and Marginal Costing: Marginal and Differential Costing as a Tool for Decision Making-Make or Buy, Change of Product Mix, Pricing, Break Even Analysis, Exploring New Markets, Shutdown Decisions.

Unit – V Budgetary Control: Meaning of Budget and Budgetary Control: Objectives, Merits, and Limitations. Types of Budget: Cash Budget and Flexible Budget. Concept of Management Audit, Responsibility Accounting. Management Reports, Types of Management Reports and Quality of Goods Report.

Management & Cost Accounting Book Contents

1. Management Accounting (An Introduction)
2. Financial Statements
3. Analysis and Interpretation of Financial Statements
4. Ratio Analysis
5. Funds Flow Statement
6. Cash Flow Statement (As Per Accounting Standard–3)
7. Absorption Costing and Marginal Costing
8. Marginal Costing (As A Tool For Decision Making)
9. Differential Costing
10. Cost-Volume-Profit Analysis (Break-Even Point)
11. Budget and Budgeting
12. Budgetary Control
13. Fixed and Flexible Budgeting
14. Cash Budget
15. Sales And Production Budget
16. Control Ratios
17. Zero Base Budgeting
18. Responsibility Accounting
19. Performance Budgeting
20. Standard Costing
21. Variance Analysis (Material & Labour Variance)
22. Overhead (Two-Way) Variance Analysis
23. Management Audit
24. Management Reports – Types and Quality of A Good Report