COURSE DESCRIPTION Title of Course: MANAGEMENT ACCOUNTING Course Code: MB-201 L-T Scheme: 3L+1T Course Credits: 4 Course Objectives: This course provides a comprehensive knowledge of classification of cost, Apportionment of overheads, process costing, activity based costing, segmental reporting, preparation of budgets and cost- volume profit analysis for decision making and cost control. Learning Outcomes: At the end of the course, students are able to 1.Explain the concepts of unit costing activity costing, apportionment of overheads, process costing, segmental reporting and budgeting. 2. Exhibit skills in Identifying, Measuring and analyzing costing data. Course Contents: Unit 1: Background - Nature of Management Accounting Unit 2: Financial Analysis - Cash Flow Statement (as per AS3), Financial Statements Analysis Unit 3: Cost Accumulation - Fundamentals of Batch & Process Costing, Variable Costing and Absorption (Full) Costing, Activity Based Costing System Profit Planning - Cost -Volume-Profit Analysis, Budgeting and Profit Planning, Flexible Budgeting Unit 4: Cost Control - Standard Costs and quality Costs, Cost Variance Analysis, Revenue and Profit Variance Analysis, Responsibility Accounting Relevant Costing – Introduction – Relevant Costs and Revenues- Cost Concepts – Outsourcing Decision – Decision to accept or reject a special order – Decision to continue or project Unit 5: Total Cost Management – Introduction – TCM and Business competitive edge - TCM Principles and implementation
Chandra, Prasanna – Projects (6th Edition); TMH Clements and Gido – Effective Project Management; Thomson Learning Clifford F. Gray and Erik W. Larson – Project Management (3rd edition); Donald F. Kuratko and Richard M. Hodgetts – Entrepreneurship (7th edition); Thomson Learning Gopalkrishnan & Ramamoorthy - Text Book of Project Management; McMillanNicholas – Project Management for Business and Technology (2nd edition); Pearson Education Roy, Rajeev – Entrepreneurship; OUP
Unit III Inventory Planning and Control: EOQ Models – without shortage, with shortage, with price breaks; Effect of quantity discount; ABC, FSN and VED classification; Inventory control; Perpetual, Two-bin and Periodic Inventory System; Just In Time (JIT) system; Probabilistic Inventory Models (discrete and continuous cases) Scheduling : Gantt Chart, Johnson's Rule Unit IV Network Analysis: PERT/CPM techniques, Shortest path algorithms and applications (Dijkstra’s algorithm; Flloyd's algorithm, Kruskal's algorithm, Ford-Fulkerson method) Inspection and Quality Control: Types and criteria of inspection; Statistical Quality Control; Control Charts. Unit V Total Quality Management (TQM): Concept, features, need for TQM, Cost of quality, Kaizen, Kyodo, PDCA cycle, 7 QC tools, 5s concept, Quality circle. Total Quality in Service Sector Quality Management System: Quality Audit, Concepts of six sigma Purchase Management: Purchase Policy, Systems, Procedures; Vendor Selection; Negotiation; Vendor Development and Evaluation; Make or Buy decision; Legal aspects of purchasing. Books: Bedi – Production and Operations Management (2nd edition); Oxford University Press Buffa, E. S. and Sarin, R. K. – Modern Production /Operations Management; John Wiley Chary, S.N. – Production and Operations Management (3rd edition); TMH Chase, Jacobs, Aquilano and Agarwal – Operations Management for Competitive Advantage (11th edition); TMH Dutta – Materials Management; PHI Evans and Lindsay – The Management and Control of Quality (6th edition); Cenage Learning Gaither and Frazier – Operations Management (9th edition); Thomson Learning Gopalakrishnan and Sundaresan – Materials Management: An Integrated Approach; TMH Hansen and Ghare – Quality Control and Applications; PHI