ACCOUNTING FOR MANAGEMENT

Course Code: MBA 101 Credit Units: 04

Course Objective:
Participants in this course will develop the essential ability of all managers, to use complex accounting information as a platform for
decision-making. As the course unfolds, participants will build an increasingly sophisticated level of understanding of the language of
accounting and its key concepts. In addition the course develops skills in interpreting earnings statements, balance sheets, and cash
flow reports. This ability to analyze financial statements will enable participants to deal more effectively with strategic options for
their businesses or business units.

Course Contents:
Module I: Accounting Basics
Introduction, Foundations, Accounting policies, Accounting and management control, Branches of accounting, Recording of
transactions and classification, Trial Balance & Errors, Cash book and Bank reconciliation statement.

Module II: Final Accounts

Preparation, Adjustments, Analysis, Depreciation Accounting, Reserves & Provisions. Form and contents of financial statements with
reference to Indian Companies Act.

Module III: Financial Statement Analysis

Relation and Comparison of Accounting data and using financial statement information, Ratio Analysis, Fund flow and Cash flow
analysis. Determination of Existing and future capital requirement.

Module IV: Cost Accounting

Elements of cost, Cost Classification and Allocation, Cost Sheet, Method of Inventory Valuation.

Module V: Management Accounting

Emergence of Management Accounting, Marginal Costing and Cost Volume Profit Analysis, Budgeting
& Variance Analysis.

Module VI: Common Issues and recent trends in Accounting

Accounting for Investments, Payroll Accounting, Inflation Accounting & Pricing decisions. Activity Based Costing & responsibility
Accounting.

Examination Scheme:

Components C A CT EE
Weightage (%) 10 5 15 70

Text & References:

Text:
• Bhattacharya, S.K. and Dearden, J. 2006 - Accounting for Management, Vikas Publishing House

References:
• Narayanaswamy R,2005, 2nd Edition,Finanacial Accounting – A Managerial Perspective,PHI (Prentice Hall of India.)
• Maheshwari S N and S K Maheshwari, 2006, Accounting for Management, Vikas Publishing House Pvt. Ltd.
• Tulsian, P.C. 2006 - Financial Accounting, 2nd Ed, Tata McGraw Hill.
• Banerjee, A. 2005 - Financial Accounting, 2nd Ed, Excel Books.
• Ghosh,T.P, 2005, Fundamentals of Management Accounting, Excel Books