PES UNIVERSITY, BANGALORE-85 Bachelor of Business Administration Course Plan Course Code : UM14BB257 No. of Hours/Week: 4 Course Title : Management Accounting IA Marks : 50 Exam Hours: 3 hrs Exam Marks : 100 Total No. of Lecture Hrs: 52 Course coordinator: Mrs.Deepika Rathi Course Description: This course aims to provide students with the basic concepts of management accounting and introduces business management approach to the use of accounting information. The course is intended as an introduction for individuals who make business decisions and evaluate the performance of business units using data obtained from the accounting system. Course Outcome: At the end of the course the students will be able to The student will be able to 1. Apply accounting knowledge in decision-making scenarios. 2. Analyzes, synthesizes, and evaluates from a wide variety of accounting information sources and its implementation
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PES UNIVERSITY, BANGALORE-85
Bachelor of Business Administration
Course Plan
Course Code : UM14BB257 No. of Hours/Week: 4 Course Title : Management Accounting IA Marks : 50 Exam Hours: 3 hrs Exam Marks : 100 Total No. of Lecture Hrs: 52
Course coordinator: Mrs.Deepika Rathi
Course Description: This course aims to provide students with the basic concepts of management
accounting and introduces business management approach to the use of accounting information. The
course is intended as an introduction for individuals who make business decisions and evaluate the
performance of business units using data obtained from the accounting system.
Course Outcome: At the end of the course the students will be able to The student will be able to
1. Apply accounting knowledge in decision-making scenarios.
2. Analyzes, synthesizes, and evaluates from a wide variety of accounting information sources and
its implementation
COURSE PLAN (52 Hours)
No. SESSIONS TOPIC COVERAGE
Pedagogy % Cum.
MODULE I
1. Unit 1 Introduction of management accounting.
1 1 Lecture method
2. Definition of management accounting and its objectives
2 3 Lecture method & PPT both
3. Scope of management accounting and it different branches of accounting
2 5 PPT
4. Relationship of cost accounting financial accounting and management accounting
2 7 PPT & lecture both
5. Meaning of financial statement 3 10 Quiz method
6. Meaning & nature of financial statements
2 12 Lecture & PPT
7. Objectives of financial statements 2 14 PPT
8. Steps to analyze financial statements 2 16 Lecture method
9.
UNIT 2 Introduction of tools used for financial statement analysis
2 18 PPT method
10 Meaning of comparative analysis 2 20 Hand out solution
11 Problem of comparative analysis with its interpretation
2 22 Lecture method
12 Use of common size statement 1 23 Handout discussion
13 Analysis of Common size statement 1 24 Handout discussion
14 Trend analysis with practical application
3 27 Lecture method & ASSINGMNET 2
15 Meaning of ratios and its classification 2 29 Lecture method
16 Uses and limitations of ratio 2 31 Lecture method
17 Problems on ratios 2 33 White board
18 Ratios calculation on the basis of financial statements
2 35 Lecture method
19 Preparation of trading & loss account and balance sheet
2 37 Lecture method
20 Analysis of ratios 1 38 PPT method
ASSINGMENT-I & II TEST -1
MODULE-II
21 UNIT 3 Meaning& definition of Fund flow statement
2 40 PPT method
22 Procedure to prepare fund flow statement
2 42 Lecture method
23 Statement of change in working capital with practical
2 44 PPT method
24 Fund flow statement and its adjustments
2 46 PPT method
25 Numerical 3 49 Handout discussion
26 Meaning and significance of cash flow statement
2 51 Lecture method
27 Concepts of cash and cash equivalents 2 53 PPT method
28 Cash flow from operating and investing activities
3 56 Lecture method & Assignment 3
29 Preparation of cash flow statement 1
57
PPT
30 Practical problems 3 60 Discussion
31
Unit 4 Meaning of Marginal costing
2 62 Lecture method
32 Methods of computing break even analysis
2 64 Lecture method
33 Contribution and P/V ratio 3 67 Hand out discussion
34 Practical application of break even analysis
2 69 Lecture method
35 Analysis of break even point 2 71 Assignment 4
36 Absorption costing method 1 72 PPT
37 Pricing decisions 2 74 PPT and lecture
39 Make or buy decisions 2 76 Lecture method
40 Evaluation of shut down point 2 78 Hand out discussion
41 Some practical problems 2 80 PPT
42 Meaning and exploring foreign markets 2 82 PPT
ASSINGMENT 3&4
TEST II
MODULE
43
UNIT 5 Introduction of budgeting
1 83 PPT
44 Meaning and objectives of budgeting control
2 85 PPT
45 Advantages of budgetary control 1 86 Lecture method
46 Different types of budget 2 88 Numerical in lecture
47 Preparation of purchase budget 2 90 Lecture method
48 Preparation of production budget 2 92 Lecture method
49 Preparation of cash budget 2 94 Lecture method
50 Flexible budget 2 96 Assignment 5
51 Concept of zero based budgeting 2 98 Handout discussion
52 Practical problem of budget 2 100 Lecture method
Note: Handouts & case lets will be emailed before commencement of Modules
Internal Assessment:
TEST(BEST OF
TWO)
ASSINGMENT TERM PAPER ATTENDANCE
>85%
TOTAL
I II III
30 8 8 4 50
Each assignment consists of the questions prescribed from the question bank by the
coordinator related to that module.
Dead line for submission: after completion of each module.
RECOMMENDED SOURCES
Text Book:
1. Sharma and S.K.Gupta “Management Accounting”, Kalyani Publishers, New Delhi, 2006. Reference Books:
1. Dr. S.N. Maheswari. “Management Accounting”, Sultan Chand & Sons,
New Delhi, 2004.
2. M.Y Khan & P K Jain, “Management Accounting, Text, problems and cases”
McGraw,Hill Publication Fifth Edition Third reprint 2011.
3. S.P. Jain and K.L. Naran, “Cost and Management Accounting,”, Kalyani
Publishers; Thirteenth edition (2012)
4. S.K. Gupta, “Management Accounting”, Kalyani Publishers, New Delhi, 2011.
5. Pandey I.M. “Management Accounting”, Vikas publishing House, New Delhi,
Attendance (5Marks)
Marks for Attendance would be considered as mentioned below.
95 to100%- 4 Marks
90 to 94%- 3 Marks
86 to 89%- 2 Marks
85% - 1 Marks
(Permissions for sports/Fest/ other college related activities are treated as regular
attendance if it is prior approved.)
QUESTION BANK
SECTION A (2 MARKS)
Attempt all Questions briefly:
1. Define financial accounting
2. Define management accounting
3. Define objectives of management accounting
4. Define break even analysis?
5. CVP analysis
6. Marginal costing
7. Trend analysis
8. Common-size analysis
9. Current ratio
10. Acid –test ratio
11. Inventory turnover ratio
12. Debtors turnover ratio
13. Debt equity ratio
14. Meaning of “FUND”.
15. Profitability ratios.
16. Fund flow statement.
17. Cash flow statement
18. Concept of “CASH”
19. Meaning of Schedule change in working capital.
20. P/V ratio
21. Margin of safety
22. Break even chart
23. Flexible budget
24. Production budget
25. Sales budget
26. Master budget
27. Cash budget
28. Angle of incidence.
29. Investing activities
30. Operating activities
31. Financing activities
32. Funds from operations
33. Budgetary control
34. Contribution
35. Variable cost
36. Fixed cost
37. Meaning of budget
38. Profit centre
39. Cost accounting
40. Scope of management accounting.
SECTION B (5 MARKS)
1. Discuss the nature and scope of management Accounting. Also describe the steps required for
installing Management Accounting System.
2. Define Management Accounting. How does it differ from Financial and Cost Accounting? Explain
the utility of Management Accounting in Business Management.
3. Define Management Accounting. Explain the principles and conventions of management
accounting. What are the limitations of Management Accounting?
4. What is Marginal Costing? How is control exercised on costs through Marginal Costing Techniques?
5. What do you mean by Break-even Analysis? Discuss its advantages, assumptions and limitations.
6. Discuss the role of ‘contribution’ in marginal costing. Discuss the important areas of management
decisions helped by the application of variable costing technique. Also explain its limitations.
7. What do you understand by Responsibility Accounting? Explain the significance of responsibility
accounting. And discuss its problem in implementing in business.
8. What is a responsibility centre? Explain different types of responsibility centres. What are the
prerequisites in it’s in its implementation in an industrial organisation?
9. Define responsibility accounting. Explain how the management decides about the performance of
organization units.
10. What is budgeting and how is it exercised? Discuss the various advantages and essentials for the
success of budgeting.
11. What do you understand by Budgetary Control? Discuss the types and process for preparation of
budgets prepared.
12. What do you mean by flexible budget and explain its utility. How is differ from fixed budget.
Prepare a Performa of flexible budget of a manufacturing concern for imaginary activity levels in a
suitable form.
13. What do you mean by ‘financial statements’? How are these analysed? Explain various techniques
of it.
14. Explain the following and indicate their uses as techniques for financial statement analysis: a)
Comparative Balance Sheet b) Common Size Statement
15. “Ratios are indicators –sometimes pointer but not in themselves powerful tools of management.
In the wrong hands, ratios can be very dangerous as it is possible to draw incorrect conclusions from
them particularly when based on insufficient detailed data.” Discuss. (Hint: Meaning and importance
of Ratio Analysis, Limitations and how to overcome from these limitations)
16. What is a ‘Fund Flow Statement’? Explain the importance and limitations of fund flow statement.
17. What do you mean by ‘funds’ and ‘flow’? Explain different sources and applications of fund, with
suitable illustrations.
18. Distinguish between ‘Fund Flow’ and ‘Cash Flow’ Statement. What are the advantages of
preparing Cash Flow Statement?
19. How is Cash Flow Statement prepared? Explain with the help of suitable illustration.
20. What do you mean capital budgeting? Explain the different methods of capital budgeting.
SECTION C (10 Marks)
1. From the following data of AB Ltd., calculate
(a) PI V Ratio
(b) Break -even sales
(c) Sales required to earn profit of Rs. 8,00,000
Fixed expenses rs1,00,000
Variable Cost per unit:
Direct Material = Rs. 7
Direct Labour = Rs. 2
Direct Overheads = 100% of Direct Labour
Selling price per unit = Rs. 15
2. Comment upon:
(a) Dupont Analysis
(b) Utility of Cash Flow Statement
(c) Budgetary control
3. "Management Accounting is the presentation of accounting information in such a way as to assist
the management in the creation of policy and in the day to day operations of an organization."
Elucidate.
4. "Budgetary Control brings planning, coordination and control." Elucidate the statement.
5. Explain the concept of responsibility accounting. What are the prerequisites of responsibility
accounting? Also, explain the various cost centers in this regard.
6. Calculate currents assets of a company for the following information:-
(a) Stock Turnover Ratio : 4 Times
(b) Stock of the end of year is Rs.20,000 more than stock in the beginning.
(c) Sales Rs. 3,00,000.
(d) Gross Profit Ratio 25%.
(e) Current Liabilities Rs.40,000.
(f) Quick Ratio 0.75.
7. Convert the following balance sheets into common size balance sheets and make a brief comments..