Definition of Management Accounting; Scope and Functions of Management Accounting;
Evolution of Management Accounting; Financial Accounting vs. Management Accounting;
Cost Accounting vs. Management Accounting; the Management Accountant: the Controller
Function; the Treasurer Function; Expanding Role of Management Accountants; Comparison
between Traditional and Contemporary Role of Management Accountants; Management
Accounting in Service and Non-Profit Organizations; the Management Accounting
Profession; Standard of Ethical Conduct for Management Accountants.
Chapter-2 Cost Classification and Cost Behavior Analysis
Cost Classification for Decision Making; Cost Behavior; Analysis and Measurement
of Cost Behavior; Methods of Segregating Costs into Fixed and Variable Costs (High-Low
Method; Inspection of Accounts/Accounts Classification Method; Engineering Method;
Ordinary Least Square Method); Contribution Format of Income Statement.
Chapter-3 Cost-Volume-Profit Analysis:
Assumption and Uses of Cost-Volume-Profit (CVP) Analysis; Breakeven Analysis;
Computations of Breakeven Point and Shutdown Point; Graphical Approach to CVP
Analysis; Margin of Safety; Degree of Operating Leverage (DOL); CVP Analysis Under
Multi-Product Situations; Limitations of CVP Analysis.
Chapter-4 Activity Based Costing
Traditional Costing System; Application and Limitation; Definition of ABC;
Treatment of Cost under Activity Based Costing; Designing an Activity Based Costing
System; Identifying Activities that Use Resources; Cost Drivers and Choosing Cost Drivers;
Assigning Cost using Activity Based Costing; Benefits of ABC; Comparison of Traditional
and ABC Product Costs; Criticism of ABC.
Chapter-5 Budgeting and Budgetary Control
Budget, Forecast and Budgeting; Purposes of Budgeting; Benefits; Applicability of
Budgeting and Budgetary Control; ¬Budgeting Process; Types of Budgets and their
Interrelationship; Preparation of Functional Budgets; Cash Budget; Master Budget; Budgeted
Income Statement; Budgeted Balance Sheet; Role of Budgeting in Service and Not-for -Profit
Organizations; Behavioral aspects of Budgeting.
Chapter-6 Flexible Budgeting
Flexible Budget vs. Static Budget; Limitation of Static Budget; Characteristics of a
Flexible Budget; Advantages of Flexible Budget; Preparation of Flexible Budget; Flexible
Budget and Variance Analysis.
Chapter-7 Relevant Information for Decision Making
The Concept of Relevant Cost; Using Relevant Cost Information in Decision Making;
Make or Buy Decisions; Limiting Factor Analysis; Addition or Deletion of Products or
Departments; Special Sales Orders; Sell or Process Further Decision; Replacement of Asset
Decision etc.
Chapter-8 Pricing Policy and Decisions:
Basic Economic Pricing Concepts; Market Structure and Pricing; Cost Plus Pricing
Methods; Variable Cost Pricing; Differential Cost Pricing; Full Cost Pricing; ABC and
Pricing; Rate of Return Pricing; Pricing Policies and Strategies.
Chapter-9 Responsibility Accounting:
Meaning and Objectives of Responsibility Accounting; Financial Control and its
Relationship with Operations Control; Centralization vs. Decentralization; Advantages and
Disadvantages of Decentralization; Decentralization and Responsibility Centres: Cost
Centres, Revenue Centres, Profit Centres and Investment Centres; Accounting for
Responsibility Centres: ROI, RI, EVA and MVA Measures; Comparison between ROI, RI,
EVA and MVA; Performance Responsibility Reporting.
Chapter-10 Performance Measurement:
Measuring and Managing Performance: Financial Performance Measurement and
Non-Financial Performance Measurement; Assessing Performance over the Value Chain; the
Balanced Scorecard; Motivating Behavior in Management Accounting and Control Systems.
