CREDIT DISTRIBUTION, ELIGIBILITY AND PRE-REQUISITES OF THE COURSE
Course title Credits Credit distribution of the course Eligibility Pre-requisite
& Code Lecture Tutorial Practical/ criteria of the course
Practice (if any)
Cost & 4 3 1 0 Class XII NA
Management Pass
Accounting
(DSC-4)
Learning Objectives
The Learning Objectives of this course are as follows:
• The rapidly changing business environment requires managers to make informed decisions.
• This paper will equip the students with cost and management accounting concepts, techniques
and practices which will help them in planning and controlling business operations and
management decision making.
Learning Outcomes
The Learning Outcomes of this course are as follows:
• Understand and distinguish various types of costs in manufacturing and service organizations.
• Determine the costs of products and services.
• Identify relevant costs for decision making and undertake different analysis of various types
of decisions.
• Prepare budgets and analyse variances from standard cost to identify areas in need of control.
SYLLABUS OF DSC-4
Unit 1: Nature, Scope of Management Accounting (3 Weeks)
Meaning, nature and scope of Cost Accounting and Management Accounting; Comparison
between Cost Accounting & Management Accounting; Cost Control, Cost Reduction& Cost
Management, Components of Total Cost & Preparation of Cost Sheet. Cost Ascertainment: Cost
Unit and Cost Center. Overheads: Meaning, Allocation & Apportionment.
Classification of Costs: Fixed, Variable, Mixed Cost; Product, and Period Costs; Direct and Indirect
Costs; Relevant and Irrelevant Costs; Shut-down and Sunk Costs; Controllable, and
Uncontrollable Costs; Avoidable, and Unavoidable Costs; Imputed / Hypothetical Costs and Out-
of-pocket Costs; Opportunity Costs; Expired, and Unexpired Costs.
Unit 2: Cost-Volume-Profit Analysis (5 Weeks)
Marginal cost, Contribution per unit and Total contribution. Profit Volume Ratio, Break-even
Analysis: Break-even Point, Composite Break-even Point, Cash Break-even Point, Margin of
safety.
Relevant Costs and Decision Making such as: Key Factor, Pricing, Product Profitability, Dropping
a product line, Make or Buy, Export Order, Shut down vs. Continue operations.
Unit 3: Budgets and Budgetary Control (3 Weeks)
Meaning, Steps in Budgetary Control, Types of Budgets: Sales budget, Production Budget, Raw
material consumption Budget, Raw Material Purchase Budget, Overhead Budgets, Cash Budget,
and Master Budget. Fixed and Flexible Budgets, Zero based budgeting.
Unit 4: Standard Costing and Variance Analysis (4 Weeks)
Meaning of Standard Cost and Standard Costing, Advantages, Limitations and Applications;
Material Cost Variance, Price and Usage Variance and Mix and yield Variance; Labor Cost
Variance, Rate and Usage Variance, Idle time, Mix and Yield variance. Introduction to the concept
of Target Costing, Life Cycle Costing, Quality Costing, and Activity based Costing.
Practical component (if any) - NIL
Essential/Recommended Readings: Latest editions of the following to be used:
1. Horngren's Cost Accounting: A Managerial Emphasis. Pearson.
2. Arora, M.N. (2016) A Textbook of Cost and Management Accounting. Vikas Publishing House
Pvt. Ltd.
3. Maheshwari, S.N. and Mittal, S.N. (2016) Cost Accounting: Theory and Problems. Shree
Mahavir Book Depot.
Suggestive Readings: Latest editions of the following to be used:
1. Arora, M.N. & Katyal Priyanka, Management Accounting: Theory, Problems & Solutions,
Himalaya Publishing House
2. Lal, Jawahar. Advanced Management Accounting: Text, Problems & Cases, Sultan Chand &
Company Ltd.
Note: Latest edition of the readings may be used.
Note: Examination scheme and mode shall be as prescribed by the Examination Branch,
University of Delhi, from time to time.
