accounting for managerial decisions making
TRANSCRIPT
-
8/2/2019 Accounting for Managerial Decisions Making
1/3
ACCOUNTING FOR MANAGERIAL DECISIONS MAKING
1. INTRODUCTION TO ACCOUNTING AND FINANCIAL STATEMENTS
Meaning of accounting
Output of the accounting processGAAP
Concept underlying the financial statement
2. ACCOUNTING STANDARDS AND MECHANICS
Accounting standards International and Indian
Importance of accounting standards
US GAAP and difference between AS and US GAAP
Rules of Debit and Credit
Types of accounts
Books of accounts
Recording of transaction in journal Posting of transactions in the ledger
3. ACCOUNTING FOR INVENTORIES
Introduction
Cost of inventory
Methods of inventory costing
Inventory control techniques
4. ACCOUNTING FOR FIXED ASSETS
Determination of the cost of various types of fixed assetsConcept and methods of providing depreciationImplications on changing the method of depreciation
5. PREPARATION OF FINANCIAL STATEMENTS: TRIAL BALANCE AND
ADJUSTMENTS
Preparation of trial balance from general ledger balances
Detecting errors revealed and concealed by a trial balance
Passing of different adjustments entries
6. PREPARATION OF FINANCIAL STATEMENTS: PROFIT AND LOSS
ACCOUNT
Preparation of P&L a/c from a given trial balance
Distinction between capital and revenue expenditure
7. PREPARATION OF FINANCIAL STATEMENTS: BALANCE SHEET
Preparation of balance sheet
Limitation of balance sheetVertical form of financial statement
-
8/2/2019 Accounting for Managerial Decisions Making
2/3
Analysis of balance sheet
8. STATEMENT OF CASH FLOWSConcept of cash flows
Cash flows and funds flow
Purpose, uses and structure of the statement of cash flowsPreparation of cash flows
9. LIMITATIONS OF FINANCIAL STATEMENTSLimitations of P&L a/c
Limitations of balance sheet
Understanding how income statements are manipulated
Ethical conduct in accounting profession
10. FINANCIAL STATEMENT ANALYSIS [email protected]
Introduction
Ratio analysisTypes of ratios
Liquidity ratios
Leverage / capital structure ratiosProfitability ratios
Activity ratios
Common size statements
Importance of ratio analysisLimitations of ratio analysis
11. COST CONCEPTS
IntroductionCost concepts relating to income measurement
Cost concepts relating to profit planning
Cost concepts for controlCost concepts for decision-making
12. JOB, ORDER, BATCH AND CONTRACT COSTING
IntroductionJob/ order costing
Contract costing
13. UNIT AND OPERATING COSTING
Introduction
Unit costing
Operating Costing
-
8/2/2019 Accounting for Managerial Decisions Making
3/3
14. VARIABLE AND ABSORPTION COSTING
Introduction
Variable and absorption costing: a comparison
Variation and absorption costing: a reconciliation
Variable costing and decision-makingAdvantages of variable costing
Limitations of variable costing
15. COST VOLUME PROFIT ANALYSIS
Cost classification
Cost-volume-profit analysis
Senstivity analysis
Advantages of cost-volume-profit analysis
Reference books
Needles, Power, and Crosson: Accounting for Decision Making (Houghton Miffin:
2008): Relevant chaptersR. Narayanaswamy: Financial Accounting A Managerial Perspective (PHI: Latest
edition): Relevant chapters