Cost and Management Accounting
Subject Overview
Cost and Management Accounting is BBA's paper on using financial and cost data for managerial decisions — the equivalent of B.Com's Management Accounting, built for management students. You'll cover ratio analysis and cost/management accounting fundamentals, financial statement analysis and standard costing with variance analysis, budgetary control, and close with marginal costing, break-even analysis, and cost-volume-profit analysis. This is a 6-credit core paper across 4 units, building directly on Basic Accounting from Semester 1.
Unit-wise Syllabus
4 units — click WhatsApp below to get the full notes for each
Unit 1: Introduction & ratio analysis
Meaning, objectives, nature and scope of management accounting, difference between cost and management accounting, cost control and cost reduction, computation of liquidity, solvency, profitability and turnover ratios
Unit 2: Financial statement analysis & standard costing
Types and methods of financial analysis, comparative statements, trend analysis, common size statements, meaning of standard costing, advantages and limitations, material, labour, overhead and sales variance analysis
Unit 3: Budgetary control
Concept of budgeting and budgetary control, objectives, merits and limitations, budget administration, functional budgets, fixed and flexible budgets, zero base budgeting
Unit 4: Marginal costing & break-even analysis
Absorption vs. variable costing, distinctive features and income determination, cost-volume-profit analysis, profit/volume ratio, algebraic and graphic break-even analysis, margin of safety, key factor, cost indifference point