12MBAFM324 Cost Management syllabus for MBA


Unit-1 Introduction to Cost Management 5 hours

Introduction to Cost Management- Cost Accounting to Cost Management-Cost Management Tools- A Strategic View to Cost Management.

Unit-2 Overheads 10 hours

Overheads, Classification and Collection, Difference between CostAllocation and Cost Apportionment, ( Full fledged Problems on Primaryand secondary distribution, Simultaneous equations, Absorption of Overhead,Theory on Under and Over absorption of Overhead

Unit-3 MARGINAL COSTING 10 hours

MARGINAL COSTING – Nature and Scope- Applications-Break evencharts and Point, Decision Making ( all types with full problems)DifferentialCost Analysis, Advantages and Disadvantages of Marginal Costing.

Unit-4 Budgetary Control 8 hours

Budgetary Control :- Objectives of Budgetary control, Functional Budgets,Master Budgets, Key Factor Problems on Production Budgets and FlexibleBudgets.Standard Costing :- Comparison with Budgetary control, analysis ofVariances, Simple Problems on Material and Labour variances only .

Unit-5 Demerits of Traditional Costing 8 hours

Demerits of Traditional Costing, Activity Based Costing, Cost Drivers,Cost Analysis Under ABC ( Unit level, Batch Level and Product SustainingActivities), Benefits and weaknesses of ABC, Simple Problems under ABC.

Unit-6 Cost Audit 5 hours

Cost Audit,-objectives,, Advantages, Areas and Scope of Cost Audit , CostAudit in India --Practical—Read the contents of the report of Cost Audit andthe annexure to the Cost Audit report.Management Audit- Aims and the objectives, Scope of Management Audit.

Unit-7 Reporting to Management 5 hours

Reporting to Management – Purpose of reporting-Requisites of a goodreport,, Classifications of Report,Segment reporting, Applicability of Accounting Standard 17, Objectives,Users of Segment reporting.

Unit-8 Cost Reduction 5 hours

Cost Reduction, and Cost Control, Target Costing – its Principles, BalancedScorecard as a performance measure- Features- Purpose, Reasons for use ofBalanced scorecard.Proportion of problems to theory 50%

Last Updated: Tuesday, January 24, 2023