Management Accounting 2023

Unit I
Management accounting – Definition – Objectives – Nature – Scope
– Merits and limitations – Differences between management
accounting and financial accounting – Financial statement analysis –
Comparative statement – Common size statement – Trend percentage
– Ratio analysis – Meaning – Classification – Liquidity, solvency,
turnover and profitability ratios.
Unit II
Fund flow statement – Meaning – Preparation – Schedule of changes
in working capital – Funds from operation – Sources and applications
– Cash flow statement – Meaning – Difference between fund flow
statement and cash flow statement – preparation of cash flow
statement as per AS3.
Unit III
Budget and Budgetary control – Meaning – importance and its
Advantages – Preparation of purchase, production, production cost,
sales, overhead cost, cash and flexible budgets.
Unit IV
Standard costing – Meaning, Advantages and its Limitations –
Variance analysis – Significance – Computation of variances (Material
and Labour variance only) – Marginal costing – CVP analysis –
Break even analysis – BEP – Managerial applications – Margin of
safety – Profit planning.
Unit V
Capital Budgeting – Meaning – Importance – Appraisal methods –
Payback period –– Accounting rate of return – Discounted cash
flow – Net present value – Profitability index –Internal rate of return.