ACCOUNTING FOR DECISION MAKING Course Code :MFC-302 Semester : 3rd Max.

Marks :100 Term End Exam : 70 Cont. Assessment : 30

Objective: This course would give an understanding of the Cost & Management Accounting Techniques

for Managerial Decision making.

Unit 1 Role of accounting in managerial decision making. Financial, cost and management accounting. Cost : Classification and determination, cost elements: material, labour and overheads. Cost sheet. Cost Management Systems: treatment of overheads under traditional systems, allocation and absorption of overheads. Treatment of overheads under modern systems like activity based costing. Measuring the cost of resource activity. Implementation of ABC. Cost information for pricing decisions. Unit II Marginal Costing and Management Decisions, absorption vs. marginal costing, segregation of semi-variable costs, tools of marginal costing. Cost volumes relationship. Break even analysis: methods and applications. Differential Costing and management Decisions: (i) make or buy (ii) optimum sale mix (iii) selling or further processing (iv) change vs status quo (v) shutdown or continue (vi) exploring new markets (vii) adding or dropping a new product. Unit III Standard Costing: standard setting for material, labour, overheads and sales. Variance accounting for material, labour, overheads and sales. Investigation of variances. Control and disposition of variances. Revision of standards and variances. Social responsibility accounting : Concept and applications, Human resource accounting : concept & valuation of human resources. Unit IV Financial Statement Analysis: comparative statements, trend analysis, ratio analysis. Fund flow analysis, cash flow analysis and economic value added analysis.

Note : This paper shall have 60% numerical & 40% theoretical questions.
Suggested Readings: 1. 2. 3. 4. 5. 6. Horngren, Sudem & Stratton : Introduction to Management Accounting, Pearson Education. lynch Richard and Williomson Robert: accounting for management, Planning and Control, Tata McGraw Hill. Atknison, Banker, Kaplan & Young : Management Accounting, Pearson Education. Kaplan & Atknison : Advanced management Accounting, Pearson Education. Kishore, Ravi M. : Advanced Management Accounting: Taxman Publications. Sharma & Gupta : Management accounting, Kalyani Publishers.