Accounting For Management

Cover
Half Title
About the Author
Title Page
Copyright
Dedication
Preface
Acknowledgements
Contents
Section 1: Financial Accounting
1. Financial Accounting: Perspectives
Introduction
Accounting
Accounting: The Modern Concept
Accounting Principles
Accounting Conventions and Policies
Summary
Review Questions
2. General Accounting Principles and Accounting Standards
Introduction
Meaning of Transaction of Financial/Monetary Nature
Classification of Accounting Principles
Systems of Accounting
Accounting Standards
Summary
Review Questions
3. Accounting Mechanics: Basic Records
Introduction
Systems of Accounting
Journal
Classification of Goods Account
Ledger
Trial Balance
Subsidiary Books
Bank Reconciliation Statement
Errors and Rectification
Summary
Review Questions
4. Preparation of Financial Statements—Profit and Loss Account and Balance Sheet
Introduction
Trading Account
Profit & Loss Account
Balance Sheet
Preparation of Trial Balance
Summary
Review Questions
5. Revenue Recognition
Introduction
The Accounting Principles
Methods
Summary
Review Questions
6. Inventory Pricing and Valuation
Introduction
Inventory Control and Valuation
Costs for Inventory Decisions
Methods of Inventory Control
Valuation of Inventories
Summary
Review Questions
7. Depreciation Policy
Introduction
Methods of Depreciation
Modern Depreciation
Summary
Review Questions
8. Human Resource Accounting
Introduction
The Concept of Original Cost
Human Resource Value Accounting
Summary
Review Questions
Section 2: Cost Accounting
9. Cost Accounting: Perspectives
Introduction
Objects and Functions of Cost Accounting
Distinction Between Cost Accounting and Financial Accounting
Classification of Costs
Summary
Review Questions
10. Costing and Control of Overheads
Introduction
Various Methods of Calculating Oncost
Allocation of Office and Administrative Expenses
Allocation of Selling and Distribution Expenses
Departmentalisation of Overheads
Summary
Review Questions
11. Costing and Control of Labour
Introduction
Methods of Remuneration
Bonus Schemes or Premium Plans
Co-Partnership and Profit-Sharing Schemes
Summary
Review Questions
12. Job Order Costing and Target Costing
Introduction
Contract Costing
Type of Contracts
Summary
Review Questions
13. Process Costing and Activity Based Costing
Introduction
Special Features of Process Costing
Direct and Indirect Expenses
Activity Based Costing (ABC)
Target Costing
Summary
Review Questions
14. Profit Planning-I: Marginal Costing
Introduction
Concept of Marginal Costing
Practical Applications of Marginal Costing
Concept of Decision–Making
Advantages and Limitations of Marginal Costing Technique
Meaning of Key Factor
Cost Volume Profit Relationship
Summary
Review Questions
15. Profit Planning-II: Break Even Analysis
Introduction
PV Ratio: Meaning—Its Improvement and its Aplication
Determination of Break Even Point
Summary
Review Questions
16. Standard Costing and Analysis of Variances
Introduction
Standard Cost and Other Cost Systems
Advantages of Standard Costing
Variance Analysis
Classification of Variances
Summary
Review Questions
Section 3: Management Accounting
17. Management Accounting: Perspectives
Introduction
Functions of Management Accounting
Difference Between Management Accounting & Financial Accounting
Role of Management Accountant
Role of Management Accounting
The Utility and Limitations of Management Accounting or a Managerial Tool
The Various Tools of Management Accounting
Limitations of Management Accounting
Summary
Review Questions
18. Planning for Liquidity-I: Statement of Sources and Application of Funds
Introduction
Concept of Funds
Fund Flow Statement
Advantages of Funds Flow Statement
The Technique of Preparing a Funds Flow Statement
Analysis of Flow of Funds
Summary
Review Questions
19. Planning for Liquidity-II: Cash Flow Statement
Introduction
Concept of Funds
Constructing the Cash Flow Statement
Summary
Review Questions
20. Profit Planning-III: Budget and System of Budgetary Control
Introduction
Objective of Budgetary Control System
Essentials of Good Budgetary Control System
Meaning of Fixed Budget and Flexible Budget
Various Kinds of Functional Budget
Benefits and Limitations of the Budgetary Control Systems
Budgetary Control Organisation
Planning and Budget
Planning for Profit-Budgets
Review Questions
21. Understanding Financial Statements
Introduction
Balance Sheet and Income Statement
Nature of Financial Statements
Limitations of Financial Statements
Computation of Trend Percentages
Rest of Solvency or Analysis of Long-Term Financial Condition 21.
Test of Overall Profitability
Analysis of Capital Structure
Role of Ratio Analysis
Summary
Review Questions
22. Performance Measurement and Control
Introduction
A Division—An Independent Profit Centre
Quantitative Evaluation of a Division
Requirements for Profit Performance Measurement
Computing Divisional Investment
Transfer Price
Performance Appraisal in Public Sector Undertakings
Summary
Review Questions
23. Financial Statements Analysis: Accounting Ratios
Introduction
Current Ratio
Acid Test Ratio
Inventory Turnover Ratio
Debtors’ Turnover Ratio
Debt to Equity Ratio
Revenue Statement Ratios
Summary
Review Questions
24. Management Reporting Systems
Introduction
Reporting Needs of Different Management Levels
Types of Reports
General Principles of Reporting
Modes of Reporting
Preparation of Reports
Uses of Reports by Management
Methods of Reporting
Summary
Review Questions
Glossary
Index