Sathyabama Institute of Science and Technology BBA.LL.B - B.B.A.LL.B. (Honours) SBA1501 Management Accounting Syllabus

Sathyabama Institute of Science and Technology BBA.LL.B - B.B.A.LL.B. (Honours) SBA1501 Management Accounting Syllabus

Sathyabama Institute of Science and Technology

SBA1501 MANAGEMENT ACCOUNTING

COURSE OBJECTIVES
• To acquaint the students with basic concepts and tools used in Management Accounting.
• To understand the distinction between financial, cost and management accounting.
• To know the nature and scope of marginal accounting.
UNIT 1 – INTRODUCTION 15 Hrs.
Definition, Meaning, Nature.Scope and Objectives of management accounting- Distinction between financial, Cost
and Management Accounting.
NIT 2 – ANALYSIS AND INTERPRETATION OF FINANCIAL STATEMENTS 18 Hrs.
Balance sheet, Profit and loss account, functions of financial statements, meaning, objectives and importance and
limitations of financial statements, Techniques of analysis- Comparative, Common size and Trend Analysis – Ratio Analysis
– Classification of ratios – profitability ratios – liquidity ratios – solvency ratios – Activity ratios leverage ratios. -Interpretation
of Financial Statements with the above ratios.

UNIT 3 – FUND FLOW ANALYSIS 18 Hrs.
Meaning & Concept of funds – Flow of funds – Fund flow statement – Uses – Significance and limitations –
Procedure for preparing fund flow Statements – Cash flow Statements – Cash flow – Cash flow Statement – Uses,
significance and limitations – Difference between fund flow statement and cash flow statement – Procedure for preparing
cash flow statements.Interpretation of Funds Flow Statements.

UNIT 4 – MARGINAL COSTING 17 Hrs.
Nature and Scope Basic concepts – Definition of marginal cost and marginal costing – Assumptions of marginal
costing – CVP Analysis – Meaning, Importance and limitations of CVP analysis – Break-even Point – Breakeven chart –
Margin of Safety – Profit Volume Graph – Applications in decision making

UNIT 5 – STANDARD COSTING AND VARIANCE ANALYSIS 17 Hrs.
Standard Costing and Variance Analysis: Meaning of Standard cost and Standard Costing – Steps involved in
Standard Costing – Advantages and Limitations of Standard Costing – Variance analysis – Material Variances, Labour
Variances.
Max. 85 Hours

COURSE OUTCOMES:
On the completion of the course the student will be able to
CO1: Critically analyze and provide recommendations to improve the operations of organisations through the application of
management accounting techniques.
CO2: Demonstrate mastery of costing systems, cost management systems, budgeting systems and performance
measurement systems.
CO3: Demonstrate the need for a balance between financial and non-financial information in decision making, control and
performance evaluation applications of management accounting.
CO4: Learn within teams – to co-operate with team members, to assume leadership and to manage differences and
conflicts.
CO5: Evaluate complex ideas and tolerate ambiguity in managerial and organizational problem-solving.
CO6: This Course will equip the students with the required Professional Skills.

TEXT / REFERENCE BOOKS
1. Management Accounting S.P.Gupta.
2. Management Accounting S. N. Maheswari.
3. The Practice of Management Accounting K.S. Sastry and Nand.
4. Principles and Practice of Management Accounting Sharma & Gupta.
5. Management Accounting J. Made Gowda

END SEMESTER EXAMINATION QUESTION PAPER PATTERN
Max. Marks:100 Exam Duration: 3 Hrs.
PART A: 6 Questions to be answered out of 8 questions and each question carries 5 Marks 30 Marks
PART B: 4 questions to be answered out of 8 questions (Internal Choice) and each question carries 10 Marks 40 Marks
PART C: 2 Questions to be answered out of 4 questions and each carries 15 marks 30 Marks