Programme Course Code(s) Title

BBA / BBA (CA) 16BMS07 Cost and Management Accounting

Learning Outcome : Students will be able to
Explain: Basics of Cost accounting and Budgeting.
Prepare: Cost sheet
Analyze: Ratios, funds and financial statements
Expected Level of Output : Conceptual Level
Department offered : Management Science
Course Inputs:
Text Instructional
Unit Description Chapter
Book Hours
Introduction to Cost Accounting: Meaning of Cost,
Costing, Cost Accounting; Objectives; Advantages;
Principles and Limitations of Cost Accounting;
Costing – An aid to Management; Methods of A I/1 5
I Costing; Types or Techniques of Costing;
Distinction Between Financial Accounting and
Cost Accounting. (Theory)
Classification of Cost; Preparation of Cost Sheet or
A I/2 6
Statement of Cost. (Problem)
Material Control: Meaning; Objectives; Essentials;
Methods of Valuing Material issues or Material A II/1 4
Costing – FIFO, LIFO, Average Cost Method
Techniques of Material control: Reorder Level,
Minimum Level, Maximum Level, Danger level, A II/2 4
Average stock level and EOQ.

II Labor Cost Control: Types of Labor; Labor Cost;

Labor Turnover- Flux, Replacement & Separation A II/4 4
Methods

Wage Payment: Essentials of good wage system;

System of wage payment – Time Wage, Piece Rate,
A II/5 5
Straight Piece Rate, Taylor’s Differential Piece
Rate System, Halsey Premium Plan And Rowan
 Plan. (Problem)

Introduction to Management Accounting:

Definition and Meaning of Management
Accounting; Nature; Scope; Functions; Tools and
B 1 2
techniques of Management Accounting; Distinction
between Management Accounting and Cost
Accounting. (Theory)
III
Analysis and Interpretation of Financial statement:
Comparative, Common Size and Trend Analysis B 2 6
(Problem )
Ratio analysis: Classification of Ratios; Liquidity
Ratio, Turnover Ratio, Profitability Ratio and B 3 6
Solvency Ratio (Simple Problems Only)
Fund flow Analysis and Cash flow Analysis and
IV B 4&5 12
Interpretation. (Simple Problems Only)
Budget: Meaning of Budget; Budgeting; Budgetary
control – Objectives, Advantages and Limitations;
V Problems relating to Cash Budget; Sales budget; B 6 6
Overhead Budget; Purchase Budget and Master
Budget.
Revision 6

Total Hours 66
Note: 80% Problem; 20% Theory CIA: 25; End Semester: 75
Text Book(s):
A. S.P Jain K.L Narang, Cost Accounting, Kalyani Publishers, Ludhiana, 23rd
Revised Edition, 2013.
B. Murthy.A, Guruswamy.S, Management Accounting, Tata McGraw Hill Publishing
Company Ltd, New Delhi, 2ndEdition, 2009.
Reference Books:
1. Khan. M.Y. and Jain.P.K, Cost Accounting, Tata McGraw Hill Publishing
Company Limited, New Delhi, 2nd Edition.
2. ShashiK.Gupta, Sharma.R.K, Management Accounting, Kalyani Publishers.
Ludhiana, 5th Revised Edition, 2010