Chapter -1: Managerial Accounting and Business Environment The work of management and the need for managerial accounting information, comparison of financial and managerial accounting, organization structure.
Chapter – 2: Cost terms, concepts and classifications General cost classification, manufacturing and non-manufacturing costs, product costs vs. period costs, cost classifications on financial statement, cost of quality.
Chapter – 3: Cost Behavior - Analysis and Use Types of cost behavior patterns –VC vs. step variable cost; fixed cost, the analysis of mixed costs, The High-Low method, The contribution format income statement.
Chapter – 4: Cost-Volume-Profit Relationships The Basics of Cost-Volume-Profit (CVP) Analysis, Contribution Margin, CVP Relationships in graphic form, Contribution Margin Ratio (CM Ratio), Some applications of CVP concepts.
Chapter – 5: Variable Costing – a Tool for Management Overview of Absorption and Variable Costing, Income Comparison of Absorption and Variable Costing, Effect of changes in Production on Net Operating Income.
Chapter – 6:
Activity Based Costing (ABC) – a Tool to Aid Decision Making
How Costs
are treated under Activity Based Costing (ABC), designing an Activity Based
Costing (ABC) system, comparison of traditional and ABC product costs.
Chapter – 7:
Profit Planning
The Basic
framework of Budgeting, Preparing the Master Budget, Sales Budget, Production
Budget, Purchase Budget, Cash Budget, Flexible Budget.
Chapter – 8:
Segment Reporting and Decentralization
Decentralization
in organizations, Responsibility Accounting, Hindrances to proper Cost
Assignment, Evaluating Investment Centre Performance-return on investment,
Residual Income, Transfer Pricing.
Chapter – 9:
Relevant Costs for Decision Making
Cost Concepts for Decision Making, Adding and Dropping
Product Lines, make or buy Decisions, Opportunity Costs, Special Orders, Joint
Product Costs and Contribution Approach.
Chapter – 10: Capital Budgeting
Capital Budgeting, Planning Investment, Discounted Cash
Flow- the net present value method, Internal rate of return method,Payback
method, Simple Rate of Return method.