MBAA-102 Accounting for Managers

MBAA-102 Accounting for Managers

The Learning Units for this course are listed below:

Unit	Objectives
1	Introduction to Accounting: Nature and role of accounting; Meaning and objectives of accounting; Different branches of accounting: and The basic accounting concepts, principles and conventions. [Link]
2	Preparation of Books of Accounting: Know the meaning and steps of accounting process; Understand the meaning and importance of journal; and know the rules of journalising. [Link]
3	Financial Statements: Explain the meaning and objectives of financial statements of a business entity; Understand the basic concepts of a Profit & Loss account; Classify income and expense items; Understand the structure and components of a balance sheet; and Understand the basic principles of assets valuation. [Link]
4	Cash Flow Statement: Understand the purpose and preparation of cash flow statement; Distinguish between operating activities, investing activities and financing activities; Prepare the cash flow statement using the direct method; Prepare the cash flow statement using the indirect method. [Link]
5	Understanding and classifying costs: to familiarise you with the process of determination of costs, particularly in a manufacturing concern; to explain how the costing techniques are useful in the process of managerial decisionmaking. [Link]
6	Absorption and Marginal Costing: to familiarise you with the techniques of Absorption Costing and Marginal Costing; to explain the basic features and in that process bring out explicitly the differences between the two techniques; and to develop an appreciation that Marginal Costing has an edge over Absorption Costing as far as managerial decision making is concerned. [Link]
7	Activity based Costing: Understand the concept of Activity Based Costing (ABC) and its objectives and features; Identify the difference between Traditional Costing and ABC; Comprehend the usages of ABC; Recognise the Cost drivers and their types and Understand other related terms to ABC. [Link]
8	Cost control, cost reduction and cost management: explain the concept of cost control and cost reduction; identify the need of cost control and cost reduction; enumerate the techniques of cost control and cost reduction; differentiate between cost control and cost reduction and explain the concept of cost management. [Link]
9	Economic Order Quantity (EOQ): describe various optimization concepts pertaining to inventory; explain the concept of Economic Order Quantity (EOQ) of inventory; discuss various factors affecting inventory; derive the expression for EOQ of simple EOQ model & understand EOQ model for non-uniform demand model. [Link]
10	Marginal Costing: to introduce you with the concept of marginal costing; to explain the income statement under marginal costing and how it differs from absorption costing; and to discuss the merits and limitations of marginal costing along with developing a marginal cost equation uses of marginal costing in managerial decisions. [Link]
11	Cost Volume Profit Analysis: understand the concept of break even analysis, impact of change in sales volume, price, variable cost, fixed costs on profits; apply cost-volume profit relationship for profit planning; understand the concept of margin of safety, angle of incidence, and profit volume ratio in decision making; and examine the assumptions and limitations of the break even analysis. [Link]
12	Relevant Costs for Decision Making: distinguish between the different types of costs; distinguish between the nature of costs; present different alternatives before the decision making; and selection out of different alternatives. [Link]
13	Pricing Decisions: understand the need for pricing decisions; state the objectives of pricing; identify the factors influencing pricing decisions; and explain various methods of pricing. [Link]
14	Budgeting: the basic aspects of financial planning and the role of budgeting; various types of budgets; some new ideas and development in the area of budgeting. [Link]