MBA103 ACCOUNTING FOR MANAGERS The objective of the course is to familiarize the students with the financial accounting

system which processes transactions to generate financial statements through the book keeping mechanism and to enable the students to understand the financial status and performance of the business enterprises on the basis of an analysis of the financial statements. It also seeks to develop students analytical and interpretative skills in the use of management and cost accounting information in decision making, cost determination, control and budgeting. Unit I Introduction to Financial Accounting Purpose, use and role. Financial Accounting rules, concepts and conventions. Financial Accounting transactions, the process of recording, rules of book keeping and books of accounts Double Entry book keeping, journalising, primary and secondary books of accounts. The structure and contents of financial statements - The profit and loss account and the Balance Sheet. The need for adjusting entries - revenue recognition, accrual principle, depreciation, closing inventories and their valuation, bad debts and providing for doubtful debts, discounts , contingencies, prior year expenses etc. The analysis of financial statements, Ratios and their uses. Types of ratios and their meaning, using ratios to understand the financial status and performance of an organization, Funds Flow analysis, Inter firm comparisons and Trend analysis. Cost accounting and its purposes. Classification of Costs and their uses. Allocation of Costs. Cost centres. Types (methods) of Costing, Activity Based Costing. Joint products and by-products. Relevant costs for decision making - Break Even and cost volume profit analysis. Budgeting, Standard Costing and Variance Analysis. Full and Direct Costing.

Unit II

Unit III

Unit IV

Unit V