UNIVERSITY OF MADRAS
Bachelor in Computer Applications (BCA)
SEMESTER SYSTEM WITH CREDITS
(Effective from the Academic Year 2003-2004)

SYLLABUS

Semester IV - BCA214 - Cost and Management Accounting

Lecturer/Lab Hours per Week: 6
Duration: 3 hrs
Max Makrs: 100
Credit: 4

UNIT I :

Cost Accounting: Definition, Meaning and objectives - Distinction between Cost and Financial Accounting. Elements of cost and preparation of cost sheets and tender. Management Accounting - Definition and objectives - Distinction between management and financial accounting.

UNIT II :

Materials: Stores Records - Purchase Order - Goods Received. Note - Bin Card - Stores Ledger - Purchase, Receipt and Inspection - Inventory Control. ABC Analysis - Economic Ordering Quantity - Maximum, Minimum and Reordering levels - Methods of Pricing Issued.
Labour: Importance of Labour Cost Control - Various Methods of Wage Payment - Calculation of wages - Methods of Incentive for Schemes.

UNIT III :

Overheads: Factory, Administration, Selling and Distribution of overheads - Classification - Allocation and Apportionment-Redistribution (Secondary Distribution) - Absorption of Over heads including 'Machine Hour Rate'

UNIT IV :

Funds Flow and Cash Flow Analysis: Schedule of changes in working capital - Preparation of 'funds flow statement'-Preparation of 'Cash Flow Statement' - Importance of funds flow and cash flow Analysis - Difference between funds flow and cash flow.
Ratio Analysis : Utility and limitations of Accounting Ratios - calculation of Accounting Ratios - Ratio Analysis for Liquidity, Solvency, Profitability and Leverage.

UNIT V :

Marginal Costing: The Concept - Break Even Analysis - Break - Even Chart - Importance and assumptions - Application of Profit Volumes Ratio - Different types of problems (with special emphasis on decision making problems). Budget and Budgetary Control: Procedure and Utility - Preparation of different types of Budget including Flexible Budget.

Books for Study and Reference:

1. Wheldon A.J.,Cost Accounting and Costing Methods.
2. Iyengar S.P., Cost Accounting: Principles and Practice.
3. Bhar B.K., Cost Accounting: Methods and problems.
4. Bigg W.W., Cost Accounts.
5. Prasad N.K, Cost Accounting: Principles and Problems.
6. Jam S.P. and Narang K.L., Advanced Cost Accounting.
7. Agarwal M., Theory and Practices of Cost Accounting.
8. Robert Anthony: Management Accounting: Text and cases.
9. Maheswari S. N., Principles of Management Accounting.