Management and Financial Accounting(Subject Code:)

Part 1: Financial Accounting (60 marks)

Level of Knowledge: Expert Knowledge

Learning Objectives:a) To develop conceptual understanding of the fundamentals of financial accounting system(b) To lay a foundation for the preparation and presentation of financial statements;(c) To gain working knowledge of the principles and procedures of accounting and their application to different practical situations;

Contents:

Unit 1.Theoritical Framework

i. Meaning and Scope of accountingii. Accounting Concepts, Principles and Conventionsiii. Accounting Standards concepts, objectives, benefitsiv. Accounting Policiesv. Accounting as a measurement discipline valuation principles, accounting estimates

Unit 2.Journal, Ledger & Trial Balancei. Journal Entriesii. Ledger Postingiii. Books of Accounts leading to the preparation of Trial Balance

Unit 3.Principle of Capital and Revenue i. Capital and revenue receipts and expendituresii. Contingent assets and contingent liabilitiesiii. Fundamental errors including rectifications thereof

Unit 4.Depreciation accountingi. Methods, computation and accounting treatment of depreciationii. Change in depreciation methods

Unit 5.Final Accountsi. Trading Accountii. Profit & Loss Account and its importanceiii. Balance Sheet & its Characteristicsiv. Classification of Assets & Liabilities

Unit 6.Bank Reconciliation Statement

Part 2: Management Accounting (40 marks)

Level of Knowledge: Working Knowledge

Learning Objectives:(a) To understand the basic concepts and processes used to determine product costs;(b) To be able to analyse and evaluate information for cost ascertainment, planning, control and decision making

Contents:

Unit 1.Introduction to Management Accountingi. Objectives and scope of management accountingii. Importance, functions and limitationsiii. Relationship of cost accounting, financial accounting, management accounting and financial management.

Unit 2.Marginal Costing and Decision Making Analysisi. Characteristics of marginal costingii. Contributioniii. Cost volume profit analysisiv. Break even analysisv. Margin of safetyvi. Decision making analysis

Unit 3.Budgeting and Budgetary Controli. Classification of budgetsii. Preparing budgetsa. Fixed and Flexible budgetb. Master budgetc. Sales budgetd. Cash budgete. Purchase budgetiii. Zero Based Budgetingiv. Budgetary Control

Unit 4.Management Reportingi. Concept of Management reportingii. Principles of Good Reporting systemiii. Types of reportsiv. Modes of Reportingv. Management reporting by exception

Unit 5.Responsibility Accountingi. Introduction, meaning and Objectivesii. Types of responsibility centers

Advanced Management Accounting(Subject Code: )

Level of Knowledge: Expert Knowledge

Learning Objectives:(a) To understand the basic concepts and processes used to determine product costs(b) To be able to interpret cost accounting statements;(c) To be able to analyse and evaluate information for cost ascertainment, planning, control and decision making(d) To be able to solve simple cases.

Contents:

Unit 1.Cost Accounting

i. Cost centres and cost unitsii. Cost classification for stock valuation, profit measurement, decision making and controliii. Coding systemsiv. Elements of costv. Cost behaviour pattern, separating the components of semi-variable costs

Unit 2.Cost Ascertainment

i. Material Costa. Procurement procedures - store procedures and documentation in respect of receipts and issue of stock, stock verificationb. Inventory control - techniques of fixing of minimum, maximum and reorder levelsc. economic order quantity, ABC classification; stocktaking and perpetual inventory

(b) Employee Costa. Attendance and payroll procedures, overview of statutory requirements, overtime, idle time and incentivesb. Labour turnoverc. Utilisation of labour, direct and indirect labour, charging of labour cost, identifying labour hours with work orders or batches or capital jobsd. Efficiency rating procedurese. Remuneration systems and incentive schemes.

(c) Overheadsa. Functional analysis factory, administration, selling, distribution, research and Development b. Behavioural analysis fixed, variable, semi variable and step costc. Factory overheads primary distribution and secondary distribution, criteria for choosing suitable basis for allotment, capacity cost adjustments, fixed absorption rates for absorbing overheads to products or servicesd. Administration overheads method of allocation to cost centres or productse. Selling and distribution overheads analysis and absorption of the expenses in products/customers, impact of marketing strategies, cost effectiveness of various methods of sales promotion.

Unit 3.Cost Book-keeping

i. Cost ledgers non-integrated accounts, integrated accounts ii. reconciliation of cost and financial accounts

Unit 4.Standard Costing

i. Meaning of standardsii. Components of standard costsiii. Material varianceiv. Labour variancev. Price variancevi. Overhead variancevii. Variance Analysis.

Unit 5.Operating Costing System

Unit 6. Techniques of Financial Analysis i. Fund Flow Statementii. Cash Flow Statement