Management accounting is a fast growing and high value subject and all business graduatees must possess knowledge of concepts, techniques and practices of this subject. It helps in planning and controlling of business operations and also in management decision making, which in turn assists in profit maximisation for the business.
The book has been divided into eight chapters to fully cover the syllabus of B.Com. of Tamil Nadu University as per NEP. Based on the conviction that students can really learn cost accounting by solving problems, the theory and problems approach has been adopted to fully meet all the examination needs of the students in one book. Thus apart from well organised theory, the book has sufficient number of solved problems and illustrations and unsolved problems with answers and hints, apart from short answer questions and essay type questions. This will help students tackle examination questions with ease. The theory questions and practical problems have been mostly selected from examinations of BBM, BBA and B.Com. of various leading Indian universities.
Contents –
1. Introduction to Management Accounting
Introduction
Management Accounting — Meaning and Definition
Characteristics or Nature of Management Accounting
Scope of Management Accounting
Functions (or Objectives) of Management Accounting
Financial Accounting and Management Accounting — Comparison
Cost Accounting and Management Accounting — Comparison
Limitations of Management Accounting
Examination Questions
2. Analysis and Interpretation of Financial Statements
Introduction
Nature of Financial Statements
Principal Tools of Analysis
Comparative Financial Statements
Common Size Statements
Trend Percentages
Examination Questions
3. Ratio Analysis
Introduction
Classification of Ratios
Liquidity Ratios
Capital Structure Ratios
Turnover Ratios
Profitability Ratios
Advantages and Limitations of Ratio Analysis
Summary of Formulae
Problems and Solutions
Examination Questions
4. Fund Flow Analysis
Introduction
Meaning of Funds Flow Statement
Sources of Funds
Applications of Funds
Statement of Changes in Working Capital
Distinction between Funds Flow Statement and Profit and Loss Account Distinction between Funds Flow Statement and Balance Sheet
Advantages and Uses of Funds Flow Statement
Problems and Solutions
Examination Questions
5. Cash Flow Analysis
Introduction and Meaning
Cash Flow Statement and Funds Flow Statements — Differences
Accounting Standard 3 (AS 3) : Cash Flow Statement
Preparation of Cash Flow Statement
Objectives and Uses of Cash Flow Statement
Limitations
Problems and Solutions
Examination Ouestions
6. Budgeting and Budgetary Control
Introduction
Functional Budgets
Master Budget
Fixed and Flexible Budgets
Problems and Solutions
Examination Ouestions
7. Marginal Costing
Introduction
Product Costs and Period Costs
Meaning of Marginal Cost
Break-even Analysis
Profit-Volume Ratio (P/V Ratio)
Methods of Break-even Analysis
Margin of Safety (M/S)
Angle of Incidence
Cost Indifference Point
Graphic Presentation of Break-Even Analysis
Summary of formulae and Abbreviations
Problems and Solutions
Examination Ouestions
8. Marginal Costing and Decision Making
Fixation of Selling Price
Exploring New Markets
Export Sales
Make or Buy Decisions (Insourcing vs. Outsourcing)
Product Mix Decisions
Problems and Solutions
Examination questions
