Management Accounting
Subject Overview
Management Accounting takes the raw numbers from Financial and Cost Accounting and turns them into tools for actually running a business — analysing financial statements, computing ratios, building budgets, and tracking cash flow. You'll cover comparative and trend analysis of financial statements, a full unit on ratio analysis (liquidity, turnover, profitability, solvency), budgetary control and zero-base budgeting, and fund flow and cash flow statement preparation. The final unit introduces responsibility accounting and divisional performance measurement. This is a 6-credit core paper across 4 units, building directly on Cost Accounting and Financial Accounting from earlier semesters.
Unit-wise Syllabus
4 units — click WhatsApp below to get the full notes for each
Unit 1: Introduction & financial statement analysis
Meaning, objectives, nature and scope of management accounting, difference from cost and financial accounting, types and methods of financial analysis, comparative statements, trend analysis, common size statements
Unit 2: Ratio analysis & budgetary control
Nature and types of ratios, computation of liquidity, turnover, profitability, coverage and solvency ratios, concept of budget and budgetary control, functional budgets, fixed and flexible budgets, zero base budgeting
Unit 3: Fund flow & cash flow statements
Meaning and concept of fund flow, preparation and uses of fund flow statements, difference between fund flow and cash flow statements, preparation of cash flow statements as per AS-3 norms
Unit 4: Responsibility accounting
Concept and significance of responsibility accounting, different responsibility centres, divisional performance measurement — financial and non-financial measures