Management Accounting is an important subject in management study and courses like PGDM, MBA, B.com, M.com, BBA, ..etc. Here we have shared all the topics that are in the syllabus of Management Accounting (MA) in the second semester of MBA (Master of Business Administration).

► What is Management Accounting?

Management accounting is a branch of accounting that deals with presenting and providing accounting to the management in a systematic way so that it can perform its management functions of planning, controlling, and decision-making in an effective and efficient manner.

According to American Accounting Association (Sarasota, Florida, United States),

Management Accounting is the application of appropriate techniques and concepts in processing historical and projected financial data of an entity to assist management in establishing plans for reasonable economic objectives. And it facilitates the making of rational decisions with a view towards these objectives.

Definition

Management Accounting is the process of identification, measurement, accumulation, analysis, preparation, interpretation, and communication of information that helps managers in decision making within the framework of fulfilling the organizational objectives.

Why we study Management Accounting?

1. To demonstrate the differences between management accounting, financial accounting, and cost accounting.
2. To develop and apply standards to various types of budgets for planning and controlling purposes.
3. To understand and analysis of deviations from standard costing.
4. To apply the concept of marginal costing, and break-even concept in the various decision-making process.
5. To analyze cost-volume-profit techniques for optimizing managerial decisions, responsibility accounting, and the importance of responsibility centers.

► Management Accounting Syllabus

Syllabus of Management Accounting in MBA 2nd Semester.

Subject Name: Management Accounting
Subject Code: MBAT 202
Course: MBA II Semester 2020-22
University: Uttarakhand Technical University (Dehradun, Uttarakhand)
Total Credit: 3
Internal Marks: 30
External Marks: 70
Total Marks: 100

Management Accounting in MBA (UTU Syllabus)

Note: This Management Accounting Syllabus is as per MBA Academic Session 2020-21 of Uttarakhand Technical University, UTU Dehradun. The syllabus is according to the Scheme of Examination as per AICTE Flexible Curricula.

Unit 1: Introduction

Nature,
Scope and Importance of Management Accounting;
Difference between Financial Accounting and Management Accounting;
Difference between Cost Accounting and Management Accounting;
Cost Control,
Cost Reduction, and
Cost Management.

Unit 2: Budgeting and Budgetary Control

Concept of Budget and Budgetary Control;
Objectives,
Merits and Limitations of Budget Administration;
Types of Budget:
Fixed and Flexible Budgets,
Zero-Base Budget,
Program and Performance Budget.

Unit 3: Standard Costing

Concept of Standard Coast and Standard Costing;
Advantages,
Limitations, and Application;
Variance Analysis:
Calculation of Material Variances,
Labour Variances,
and overhead Variances,
Disposition of Variances.

Unit 4: Marginal Costing and Decision-Making

Concept of Marginal Costing,
Differential Costing and Absorption Costing,
Break-Even Analysis,
Use of above Costs in Decision-Making;
Make or Buy,
Change of Product-Mix,
Pricing and Determination of Shut-Down Point.

Unit 5: Responsibility Accounting

Concept and Approaches to Responsibility Accounting.
Different Responsibility Centres Significance;
Divisional Performance Measurement –
Financial Measures.

► Suggested Books & Readings

1. Charles T. Horngren, Gray L. Sundem, and William O. Stratton, Introduction to Management Accounting, 14th edition, Prentice-Pearson Education, Delhi, 2008
2. Khan, M.Y., and P.K. Jain, Management Accounting, 6 edition, Tata McGraw-Hill, New Delhi, 2009
3. Richard M. Lynch and Robert W. Williams, Accounting and Management: Planning and Control, 3rd edition Tata McGraw-Hill, New Delhi, 2005
4. Anthony, Robert N., David f. Hawkins, and Kenneth A. Merchant, Accounting: Text and Cases, 13th edition, Tata McGraw-Hill, New Delhi, 2010

► MBA (II Sem) Complete Syllabus

1. Organizational Behaviour (OB)
2. Management Accounting (MA)
3. Special Foundation Course (SFC)
4. Marketing Management (MM)
5. Financial Management (FM)
6. Human Resource Management (HRM)
7. Production and Operation Management (POM)
8. Business Research Methods (BRM)