COST AND MANAGEMENT ACCOUNTING(BBA 303)

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3 Semester, BBA

Free

Course Objective: To impart the students, knowledge about the use of financial, cost and other data for the purpose of managerial planning, control and decision making.

Course Outcomes (COs): After completion of the course, the students shall be able to:
CO1: Understand and differentiate between Cost accounting and management accounting.
CO2: Make managerial decisions regarding make or buy, acceptance or rejection of export
offers and continuation or shut down of plant.
CO3: Estimate the break even point of the firm.
CO4: Understand and apply the concepts of budgetary control for better decision-making.
CO5: Understand and estimate material, labor, overheads and sales variances for comparing planned with actual results.

Unit – I
Introduction: Meaning, Objectives, Nature and Scope of management accounting,Difference between cost accounting and management accounting, Cost control and Cost reduction, Cost management.
Ratio Analysis: Meaning–Nature, different types of ratios, their uses and limitations,computation of various types of ratios – liquidity ratios, solvency ratios, profitability ratios,turnover ratios
Unit – II
Analysis and Interpretation of financial Statements: Meaning- Types and Methods of Financial Analysis – Comparative statements – Trend Analysis – Common size statements.
Standard Costing: Standard Costing and Variance Analysis: Meaning of standard cost and standard costing, advantages, limitations and applications. Variance Analysis – material, labor, overheads and sales variances.
Unit – III
Budgetary Control: Budgeting and Budgetary Control: Concept of budget, budgeting and budgetary control, objectives, merits, and limitations. Budget administration. Functional budgets. Fixed and flexible budgets. Zero base budgeting.
Unit – IV
Marginal Costing: Absorption versus Variable Costing: Distinctive features and income determination. Cost-Volume-Profit Analysis, Profit / Volume ratio. Break-even analysis algebraic and graphic methods, Margin of safety, Key factor, determination of cost indifference point.