St. Xavier’s College SYBMS Sem 3 Syllabus: Management Accounting

Management Accounting is a Semester 3 subject of SYBMS at St. Xavier’s College. Management Accounting subject aims to familiarize the BMS students with the provisions and use of accounting information to managers within organizations. Management Accounting subject provides the BMS students with the basis to make informed business decisions that will allow them to be better equipped in their management and control functions. The subject helps students in preparing and presenting financial and other decision oriented information in such a way as to assist management decision making.

The topics covered in Unit 1 – Analysis and Interpretation of Accounts (20 lectures) are as follows:

1. Study of Balance Sheet Schedule VI of Limited Company
2. Study of Manufacturing Trading Profit and Loss Account of a Limited Company

Vertical Forms:

Relationship between items in Balance Sheet and Profit and Loss account.

1. Trend Analysis
2. Comparative Statement
3. Common Size Statement

The topics covered in Ratio analysis and interpretation (10 lectures) are as follows:

Ratio Analysis and Interpretation (based on vertical form of financial accounts) including conventional and functional classification restricted to:

a) Balance Sheet ratio:

1. Current Ratio
2. Liquid Ratio
3. Stock Working capital ratio
4. Proprietary ratio
5. Debt-Equity Ratio
6. Capital gearing ratio.

b) Revenue Statement Ratios:

1. Gross Profit Ratio
2. Expense Ratio
3. Operating Ratio
4. Net Profit Ratio
5. Net Operating Profit Ratio
6. Stock Turnover Ratio

c) Combined Ratios:

1. Return on Capital Employed (including long term borrowings)
2. Return on Proprietor’s Funds (Shareholders funds and preference share capital)
3. Return on Equity capital, dividend payout ratio
4. Debt service ratio
5. Debtors Turnover
6. Creditors Turnover
7. Different modes of expressing ratios: rate, ratio, percentage, number, Limitations of the use of ratios, interaction of ratios.

The topics covered in Unit 3 (10 lectures) are as follows:

Preparation of Statement of Sources and Application of Case (Cash flow statement) with reference to Accounting Standard No. 3.

The topics covered in Unit 4 – Working Capital are as follows:

1. Estimation / projection of requirements in case of trading and manufacturing organization
2. In Marginal costing, the topics are concept, contribution, break even analysis, application if marginal costing in managerial decision making.
3. Standard costing and budgetary controls

Continuous Internal Assessment:

1. Mid semester test
2. Project work – assignment

The list of reference books of Management Accounting subject are:

1. Cost Management – Saxena and Vashitha, S. Chand and Sonsa
2. Cost and Management Accounting – Ravi N. Kishore, Publication Taxmonth
3. Essentials of Management Accounting – P.N. Reddy, Himalaya
4. Advanced Management Accounting – Robert S. Kailer, Prentice Hall
5. Financial of Management Accounting – S.R. Varshney, Wisdom
6. Introduction of Management Accounting – Charbs T. Hornram, PHI Leavington
7. Management Accounting – I.M. Pandey, Vikas Publication
8. Cost and Management Accounting – D.K. Mittal, Galgotia
9. Management Accounting – Khan and Jani, Tata McGraw
10. Management Accounting – R.P. Resstogi, Gelgoha