B Com Semester VI - Cost Control & Mangament Accounting

UNIT-I: INTRODUCTION TO MANAGEMENT ACCOUNTING &MARGINAL COSTING: Meaning and Importance of Management Accounting – Marginal Cost Equation – Difference between Marginal Costing and Absorption Costing – Application of Marginal Costing – CVP Analysis – Break Even Analysis: Meaning – Assumptions – Importance - Limitations. Marginal Costing for Decision Making-Make or Buy – Add or Drop Products – Sell or Process Further – Operate or Shut-down – Special Order Pricing – Replace or Retain. 

UNIT-II: BUDGETARY CONTROL AND STANDARD COSTING: Budget: Meaning – Objectives – Advantages and Limitations – Essentials of Budgets - Budgetary Control - Classification of Budgets - Preparation of Fixed and Flexible Budgets. Standard Costing: Meaning – Importance – Standard Costing and Historical Costing - Steps involved in Standard Costing. Variance Analysis: Material variance - Labour variance - Overhead variance. 

UNIT-III: TECHNIQUES OF FINANICAL STATEMENT ANALYSIS: Meaning – Objectives - Techniques: Comparative Statement, Common Size Statement, Trend Analysis. Ratios- Meaning, Objectives and Classification—Computation of Activity, Liquidity, Solvency and Profitability Ratios. 

UNIT-IV: FUNDS FLOW ANANLYSIS: Concept of Funds – Meaning and Importance – Limitations – Statement of Changes in Working Capital – Statement of Sources and Application of Funds. UNIT-V: CASH FLOW ANALYSIS (AS-3): Meaning – Importance – Differences between Funds Flow and Cash Flow Statements – Procedure for preparation of Cash Flow Statement.