Course Name - ACCOUITNG FOR MANAGER ; Course Code: MSB21T1005 , Credit-4

Course Description
The course is the fine blend of Financial Accounting and Management Accounting.

Financial Accounting deals with preparation and presentation of financial statement through the use and practice of latest
format of financial statement, enables to identify and use of relevant financial and non-financial input from Annual Report
for decision making and helps students also to develop their analytical bent of mind to analyse and evaluate many situations
such as understanding financial health of a company, assessment of performance by making comparison with peer and
industry so as to invest or not in a company etc.

Management Accounting is the branch of accounting that supports company management in planning, decision making,
control and analysis. Effective use of this tool by operational management will ensure profitable growth and business
optimization. A manager’s overall duty is to see the optimum utilization of resources with the aim to reduce the cost, not
only he has to be an effective manager but also his decision making should be efficient one. In this course students can
expect to learn management accounting techniques like Break Even analysis, Budgets and Standard Costing etc., for taking
day to day business decisions as well as long-term decisions. The cost being the focus under “Management Accounting”, the
subject has a connection with Economics, Financial Accounting, Strategies and Operation etc., in fact the question is with
what not? Just to give one small example, during the time of economic crisis or slow down, it is found that HR jobs are first
cut down, expenditure on advertisement and branding are reduced, even R&D plan is postponed.
Course Contents

Unit I 15 lecture hours

Financial Accounting and Reporting:

Introduction to Financial Accounting, Objective of Accounting, Importance of Accounting, Accounting

Procedure/Process, Limitation of Accounting, Principles of Accounting, GAAP – US GAAP and Indian GAAP, IFRS,
Book Keeping-Objectives, Importance, Rules of Accounting, Branches of Accounting, Double- Entry System , Types
of Accounts, Journal Entries, Ledger Accounts, Trial Balance

Unit II 15 lecture hours

Financial Statement
Trading, Profit and Loss Account, Balance Sheet, Revised Format of Financial Statement, Annual Report and
Contemporary issues.
Financial Analysis:
Introduction, Types of Analysis, Common Size, Comparative, Trend Analysis, Ratio Analysis, DuPont Analysis
Unit III 15 lecture hours
Management Accounting:
Definition and purpose of management accounting, Differences between financial and management accounting, Role
of management accounting in decision-making, Cost Concepts: Cost behaviour (fixed, variable, and mixed costs), Cost-
volume-profit analysis, Cost Sheet. Types of Cost, Methods and Techniques of Cost, Cost Sheet, Inventory Control
measures- LIFO, FIFO, JIT, FSN, EOQ.

Unit IV 8 lecture hours

Methods and Techniques of Costing

Definition and purpose of cost accounting, Differences between cost accounting and financial accounting, Job
Costing and Marginal Costing, Costing and Pricing, Cost plus Contracts, Activity Based Costing, Contemporary issues.
Traditional costing methods, Activity-based costing (ABC) and its advantages, using costing information to make
business decisions.

Unit V 7 lecture hours

Cost control and Management of Cost:
Budgeting, Creating and managing budgets, Understanding the budgeting process and its importance for managers,
using forecasting techniques to predict future financial performance, Master Budget, Flexible Budget, Cash
Budget. Standard Costing, Material Variance, Labour Variance, Standard Vs. Budget
Text Book
 Financial Accounting for Management: An Analytical Perspective, Pearson Education, Dr. Ambrish Gupta, (ISBN
978-81-317-2285-5). 5th Edition,
Reference Book
 M. Y. Khan & P. K. Jain, Management Accounting: Text, Problems and Cases, 6th Edition, McGraw Hill Education

CASE STUDY-

Accounting Aberrations: A Manager’s Dilemma

Wells Fargo Bank: The Fake Accounts Scandal
Mothercare: Down or Flourishing?
Too Big to Care: Promoting Ethics When Ethics Are Not Profitable
 Project Work for Group of 5 Students (Comprehensive Review of the Annual Report)
Introduction: The project aims to analyze the financial statements of ANY REAL INDIAN OR FOREIGN COMPANY based
on its annual report. Financial analysis is a crucial skill for business students, enabling them to evaluate a company's
financial health and performance. The selected company, OF ANY REAL INDIAN OR FOREIGN COMPANY , is a
representative of a modern business organization. This analysis involves examining various financial ratios, evaluating
trends, and assessing the overall financial performance of the company.

Objective: The primary objectives of this project are:

To comprehend the structure and contents of an annual report.

To apply financial analysis techniques to evaluate the financial performance of ANY REAL INDIAN OR FOREIGN
COMPANY.
To provide insights into the company's financial health, profitability, solvency, and liquidity.
To draw meaningful conclusions and recommendations based on the analysis.

Dr. Bhupendra Kumar , School of Business (Finance)

Mb 8058815411 , Bhupendra.kumar@galgotiasuniversity.edu.in
Galgotias University India