Managerial Accounting Syllabus 2023
1. Basic Concepts: Forms of Business Organization. Meaning and Importance of Accounting in Business
Organization, Basic concepts and terms used in accounting, Capital & Revenue Expenditure, Capital & Revenue
Receipts, Users of Accounting Information. Accounting Concepts and Conventions, Fundamental Accounting
Equation, Journal, Ledger and Trial Balance. (4+2)
2. Financial Statements: Meaning of Financial Statements, Importance and Objectives of Financial Statements.
Preparation of Final Accounts of sole proprietary firm. (7 + 2)
3. Cost Accounting: Basic Concepts of Cost Accounting, Objectives,Importance and Advantages of Cost
Accounting, Cost Centre, Cost Unit, Elements of Cost, Classification and Analysis of Costs, Relevant and Irrelevant
Costs, Differential Costs, Sunk Cost, Opportunity Cost, Preparation of Cost Sheet. (8 + 2)
4. Short Term Business Decision Techniques – Marginal Costing: Meaning, Principles, Advantages and
Limitations, Contribution, P/V Ratio, Break-Even Point (BEP), Cost Volume Profit (CVP) Analysis, Short Term Business
Decisions–Product Mix Decisions, Make or Buy (Outsourcing) Decisions, Accept or Reject Special Order Decisions,
Shutting Down Decisions. (8 + 2)
5. Exercising Control – Budgetary Control & Standard Costing: Budgetary Control: Meaning of Budget and
Budgeting, Importance, Advantages and Disadvantages, Cash Budget and Flexible Budget, Functional Budgets
(overview). Standard Costing: Meaning, Importance, Advantages and Disadvantages, Cost Variance Analysis. Material
Variances– Material Cost Variance, Material Rate Variance, Material Usage Variance, Material Mix Variance and
Material Yield Variance. Labour Variances –Labour Cost Variance, Labour Rate Variance, Labour Efficiency Variance,
Labour Mix Variance, Labour Idle Time Variance and Labour Yield Variance. (8 + 2)