Master of Business Administration (International Business)
Semester I
Course 113: ACCOUNTING FOR MANAGERS
Marks: 100 (Theory = 70, Internal Assessment = 30)
Objective: To acquaint students with Concepts of Financial, Cost and Management Accounting and
their application in managerial decision making.
Contents:
Unit I - Financial Accounting: An introduction; Meaning of financial Accounting; Accounting as an
Information System; Importance, Scope and limitations of financial accounting. Accounting Concepts
and Principles; Accounting Equation, Capital and Revenue items; Generally Accepted Accounting
Principles, Accounting Standards, and International Financial Reporting Standards (IFRS).
Unit II - Accounting Process: Recording of Transactions in Primary Books, Special Purpose
Subsidiary Books; Cash Book; General Journals; Posting to Ledger Accounts, Preparation of Trial
Balance; Preparation of Financial Statements including Corporate Entities.
Unit III - Financial Statement Analysis: Analyzing Financial Statements through Ratios: Liquidity
analysis ratios; Profitability analysis ratios; Capital Structure; Activity analysis ratios; Coverage ratios,
limitations of Ratio Analysis.
Analytical Comparative Statement; Cash Flow Statement.
Unit IV - Introduction to Cost Accounting: Objectives and importance of Cost Accounting; Cost
concepts; Classification of Cost including Cost for Managerial Decision making; Elements of Cost;
Cost Centre; Cost Unit; Cost Allocation, Cost Apportionment and Ascertainment; Cost Sheet; A brief
Introduction of Methods of Costing (Theory Only); Cost Control and Cost Reduction.
Unit V - Cost Volume Profit Analysis: Marginal Cost Statement/Equation; P/V ratio; Break Even
Point (BEP), Break Even Chart; Margin of Safety; Decisions relating to Key Factor, Price fixation,
Export Order, Make or Buy, Deletion or Addition to Product/Services, Sell or Process Further, Continue
or Shut down, etc.
Unit VI – Budgeting and Budgetary Control: Basic concepts of budgeting; Preparation of Functional
Budgets, and Master Budget; and Flexible Budgets.