ACCOUNTING FOR MANAGERIAL DECISIONS MAKING

1. INTRODUCTION TO ACCOUNTING AND FINANCIAL STATEMENTS

Meaning of accounting
Output of the accounting process
GAAP
Concept underlying the financial statement
2. ACCOUNTING STANDARDS AND MECHANICS
Accounting standards International and Indian
Importance of accounting standards
US GAAP and difference between AS and US GAAP
ules of !ebit and Credit
"ypes of accounts
#oo$s of accounts
ecording of transaction in %ournal
Posting of transactions in the ledger
3. ACCOUNTING FOR INVENTORIES
Introduction
Cost of in&entory
Methods of in&entory costing
In&entory control techni'ues
4. ACCOUNTING FOR FIXED ASSETS
!etermination of the cost of &arious types of fi(ed assets
Concept and methods of pro&iding depreciation
Implications on changing the method of depreciation
5. PREPARATION OF FINANCIAL STATEMENTS: TRIAL BALANCE AND
ADJUSTMENTS
Preparation of trial balance from general ledger balances
!etecting errors re&ealed and concealed by a trial balance
Passing of different ad%ustments entries
6. PREPARATION OF FINANCIAL STATEMENTS: PROFIT AND LOSS
ACCOUNT
Preparation of P)* a+c from a gi&en trial balance
!istinction between capital and re&enue e(penditure
. PREPARATION OF FINANCIAL STATEMENTS: BALANCE SHEET
Preparation of balance sheet
*imitation of balance sheet
,ertical form of financial statement
Analysis of balance sheet
!. STATEMENT OF CASH FLO"S
Concept of cash flows
Cash flows and funds flow
Purpose- uses and structure of the statement of cash flows
Preparation of cash flows
#. LIMITATIONS OF FINANCIAL STATEMENTS
*imitations of P)* a+c
*imitations of balance sheet
Understanding how income statements are manipulated
.thical conduct in accounting profession
1$. FINANCIAL STATEMENT ANAL%SIS
Introduction
atio analysis
"ypes of ratios
*i'uidity ratios
*e&erage + capital structure ratios
Profitability ratios
Acti&ity ratios
Common si/e statements
Importance of ratio analysis
*imitations of ratio analysis
11. COST CONCEPTS
Introduction
Cost concepts relating to income measurement
Cost concepts relating to profit planning
Cost concepts for control
Cost concepts for decision0ma$ing
12. JOB& ORDER& BATCH AND CONTRACT COSTING
Introduction
1ob+ order costing
Contract costing
13. UNIT AND OPERATING COSTING
Introduction
Unit costing
Operating Costing
14. VARIABLE AND ABSORPTION COSTING
Introduction
,ariable and absorption costing2 a comparison
,ariation and absorption costing2 a reconciliation
,ariable costing and decision0ma$ing
Ad&antages of &ariable costing
*imitations of &ariable costing
15. COST ' VOLUME PROFIT ' ANAL%SIS
Cost classification
Cost0&olume0profit analysis
Sensti&ity analysis
Ad&antages of cost0&olume0profit analysis
Reference books
3eedles- Power- and Crosson2 Accounting for !ecision Ma$ing 45oughton
Miffin2 677892 ele&ant chapters
: 3arayanaswamy2 ;inancial Accounting A Managerial Perspecti&e 4P5I2 *atest
edition92 ele&ant chapters