CIE359 Management Accounting and Financial Management Syllabus:

CIE359 Management Accounting and Financial Management Syllabus – Anna University Regulation 2021

COURSE OBJECTIVES:

• Understanding the Basics of accounting and accounting standards.
• Evaluating P&L statements, Balance sheets and other accounting statements.
• Learn and apply the various cost accounting methods.
• Study the various cost control procedures.
• Sketch and prepare a budget and make investment decision

UNIT I INTRODUCTION

Basics of accounting – Management Accounting – Financial accounting – cost accounting – comparison of Financial accounting, cost accounting and management Accounting – generallyaccepted Accounting principles – Accounting standards – Accounting cycle.

UNIT II FINANCIAL ACCOUNTING

Salient features of Balance Sheet and Profit and Loss statement, cash flow and Fund flow analysis(Elementary), working capital management, ratio analysis – Depreciation.

UNIT III COST ACCOUNTING

Cost accounting systems: Job Costing, process costing, allocation of overheads, Activity basedcosting, variance analysis – marginal costing – Break even analysis.

UNIT IV BUDGETING

Requirements for a sound budget, fixed budget – preparation of sales and production budget, flexiblebudgets, zero based budgets and budgetary control.

UNIT V FINANCIAL MANAGEMENT

Investment decisions – Investment appraisal techniques – payback period method, accounting rate ofreturn, net present value method, internal rate of return and profitability index method-cost of capital

TOTAL: 45 PERIODS
COURSE OUTCOMES:

Upon successful completion of the course,
• students will acquire the ability to understand the basic concepts of accounting
• students will acquire the ability to prepare and analyze the financial statements
• students will acquire the ability to comprehend nuances involved in costing
• students will acquire the ability to analyse draft budgets
• students will acquire the ability to make sound investment decisions.

TEXT BOOKS:

1. Khan. M.Y. & P.J. Jain, “Management Accounting”, Tata McGraw Hill, seventh 2011.
2. Narayanaswamy. R., “Financial Accounting – A Managerial Perspective”, PHI Learning, New Delhi, 2011.
3. James, C. Van Horne, “Fundamental of Financial Management”, Pearson Education, 2012

REFERENCES:

1. Jan Williams, “Financial and Managerial Accounting –The basis for business decisions”, Tata McGraw Hill, 2010.
2. Horngren, Surdem, Stratton, Burgstahler, Schatzberg, “Introduction to Management Accounting”,PHI Learning, 2011.