Cost & Management Accounting

Meaning, nature and scope of Management Accounting; Difference between management accounting and financial accounting,Cost concepts: , Cost Unit, Cost Control and Cost Reduction; Components of total Cost, Cost Sheet, Classification of costs, Types and methods of costing, Inventory Management, Labour Cost, Overheads, Activity based costing.

Cost-Volume-Profit Analysis: Marginal cost, Contribution per unit and Total contribution. Profit- Volume Ratio, Break-even Point : Margin of safety. Decision Making such as : Key Factor, Pricing, Product Profitability, Dropping a product line, Make or Buy, Export Order, Sell or Process Further, Shut down vs. Continue operations.

Budgets and Budgetary Control: Meaning, Types of Budgets, Steps in Budgetary Control, Fixed and Flexible Budgeting, Sales budget, Production Budget, Raw material consumption Budget, Raw Material Purchase Budget, Overhead Budgets, Cash Budget, and Master Budget. Zero based budgeting.

Standard Costing and Variance Analysis: Meaning of Standard Cost and Standard Costing, Advantages, Limitations and Applications; Material Variance, Overhead Variance, Sales Variance, Sales Margin Variance

Process costing, concepts of normal loss, abnormal loss, abnormal effectiveness. Preparation of process accounts, normal loss account, abnormal loss account, abnormal gain account. Process costing with opening and closing WIP; equivalent units (using FIFO) and Cost allocation. Joint and by products : Allocation of joint costs based on Physical units method, Relative market value methods (Sales value at split off method and Net realizable value method). Introduction to the concept of Target Costing, Life Cycle Costing, Quality Costing, and Activity based Costing.