Management accounting: Objectives, nature and scope of management accounting:
Management accounting and managerial decisions:
Project appraisal – techniques: Payback Period, Discounted Payback period, Return on
Investment/Average Rate of Return, New Present Value, Internal Rate of Return, PI NTV,
Capital disinvestments, Capital rationing: risk analysis – methods; statistical methods; decision
tree approach, game theory, Impact of inflation on investment decisions.
Marginal costing and cost-volume profit analysis: decision making: Break even analysis, BEP
Charts, PV Charts, Cash BEP charts and decision-making: simulated BEP analysis; CVP
analysis under conditions of uncertainty, Marginal costing and decisions regarding product
mix, make or buy decisions, and dropping of product.
Cost reduction and cost control: advantage of cost reduction and cost control; areas of cost
reduction: techniques of cost reduction: productivity: improving productivity, Activity based
Cost audit: objectives, benefits, cost audit, financial audit and management audit; organization
and programme of cost audit; types of cost audit – cost audit of materials, labour overheads,
depreciation, capital expenditure and capacity utilization.
Responsibility centers: Cost center, profit center and investment center.
Transfer pricing : profit as a measure of performance: transfer pricing methods, benefits of
transfer pricing: international transfer pricing.
MCom (Masters in Commerce) Subjects