BA 4104

Accounting for Decision Making

HBS > Professional Core > Accounting for Decision Making
Course ID
BA 4104
Level
Post Graduation
Semester
Semester I

OBJECTIVES:
• Acquire a reasonable knowledge in accounts analysis and evaluate financial statements

UNIT I FINANCIAL ACCOUNTING
Introduction to Financial, Cost and Management Accounting – Generally accepted accounting principles– Double Entry System – Preparation of Journal, Ledger and Trial Balance Preparation of Final Accounts: Trading, Profit and Loss Account and Balance Sheet – Reading the financial statements

UNIT II ANALYSIS OF FINANCIAL STATEMENTS 
Financial ratio analysis, Interpretation of ratio for financial decisions- Dupont Ratios – Comparative statements – common size statements. Cash flow (as per Accounting Standard 3) and Funds flow statement analysis – Trend Analysis.

UNIT III COST ACCOUNTING
Cost Accounts – Classification of costs – Job cost sheet – Job order costing – Process costing – (excluding Interdepartmental Transfers and equivalent production) – Joint and By Product Costing – Activity Based Costing, Target Costing.

UNIT IV MARGINAL COSTING
Marginal Costing and profit planning – Cost, Volume, Profit Analysis – Break Even Analysis – Decision making problems -Make or Buy decisions -Determination of sales mix – Exploring new markets – Add or drop products -Expand or contract.

UNIT V BUDGETING AND VARIANCE ANALYSIS 
Budgetary Control – Sales, Production, Cash flow, fixed and flexible budget – Standard costing and Variance Analysis – (excluding overhead costing) -Accounting standards and accounting disclosure practices in India.

TOTAL: 45 PERIODS

OUTCOME
• A thorough grounding of financial accounting concepts
• Preparation of financial statement analysis
• Understand the management and cost accounting techniques
• Apply the management and cost accounting techniques for decision making
• Assess the accountancy standards of practices in India

REFERENCES:

1. R. Narayanaswamy, Financial Accounting, PHI, sixth edition, 2017.
2. M.Y. Khan & P.K. Jain, Management Accounting, Tata McGraw Hill, 8 th edtion, 2018.
3. T.S. Reddy & A. Murthy, Financial Accounting, Margham Publications, 2014
4. Jan Williams, Susan Haka, Mark S bettner, Joseph V Carcello, Financial and Managerial Accounting – The basis for business Decisions, 18th edition, Tata McGraw Hill Publishers, 2017
5. Charles T. Horngren, Gary L.Sundem, David Burgstahler, Jeff Schatzberg, Introduction to Management Accounting, PHI Learning, 2014 , 16th edition.
6. Earl K. Stice& James D.Stice, Financial Accounting, Reporting and Analysis, 8th edition, Cengage Learining, 2015.
7. N.M. Singhvi, Ruzbeh J.Bodhanwala, Management Accounting – Text and cases,3 rd edition PHI Learning, 2018
8. Ashish K. Battacharya, Introduction to Financial Statement Analysis, Elsiever, 2012.