ACCOUNTING FOR MANANGEMENT

Course Code:

MBAFN10101

Course Objective:
The objective of this course is to help students develop an understanding of the techniques of financial, cost and
management accounting from the perspective of the user of accounting information. The students will acquire the
knowledge of how the financial statements and reports are prepared, read and analyze them for financial decision
making. This being an introductory paper, emphasis will be on the usage of annual reports/ databases to develop
analytical skills among the students in reading the financial statements an analyzing them.

Course Contents:
Module I: Introduction to Accounting
The meaning, nature, functions and usefulness of accounting, branches of accounting, accounting concepts and
Generally Accepted Accounting Principles, accounting equation, concept of double entry and the accounting cycle,
Preparation of journal, ledger and trial balance
Module II: Preparation of Financial Statements
Financial statements and their nature, Preparation of Manufacturing, Trading, and Profit and Loss Account and
Balance Sheet- Matching of Revenue (AS 9) and Expenses, Fixed Assets (AS 10), Depreciation (AS 6) and other
related adjustments. Form and Contents of Financial Statements with reference to Indian Companies (Schedule VI)
Module III: Analysis of Financial Statements
Introduction to the various tools of analysis, Ratios analysis: Liquidity, Activity, Capital Structure, Profitability
Ratios, Preparation of fund flow and cash flow statements (AS 3).
Module IV: Cost Accounting
Elements of Cost, Cost Classification and Allocation, Cost Sheet, Methods of Inventory Valuation (AS 2),
Absorption and variable cost methods.
Module V: Management Accounting
Emergence of Management Accounting, Marginal Costing and Cost Volume Profit Analysis, Budgeting and
Variance Analysis
Module VI: Introduction to Advancements in Accounting:
Overview of Activity Based Costing, Target Costing and Life Cycle Costing and implications for management
decision making

Examination Scheme:
Components
Weightage (%)

P1
10

C1
10

CT1
20

EE1
60

Text & References:

Text:
Bhattacharya, S.K. and Dearden, J. 2006 - Accounting for Management, Vikas Publishing House
References:
Narayanaswamy R,2005, 2nd Edition,Finanacial Accounting A Managerial Perspective,PHI (Prentice Hall of
India.)
Maheshwari S N and S K Maheshwari, 2006, Accounting for Management, Vikas Publishing House Pvt. Ltd.

Tulsian, P.C. 2006 - Financial Accounting, 2nd Ed, Tata McGraw Hill.
Banerjee, A. 2005 - Financial Accounting, 2nd Ed, Excel Books.
Ghosh,T.P, 2005, Fundamentals of Management Accounting, Excel Books