SYBMS Sem 3 Syllabus: Accounting for Managerial Decision
Accounting for Managerial Decision is a subject in SYBMS Sem 3 as per revised syllabus that came into effect from the academic year 2015-16. In Accounting for Managerial decision subject, you get a comprehensive understanding of accounting principles that are required to perform in an accounting environment. You get to learn about the various provisions of accounting that managers can use in order to make decisions within their organizations. The subject will have 60 lectures and have 3 credits.
Why study Accounting for Managerial Decision?
1) To acquaint management learners with basic accounting fundamentals
2) To develop financial analysis skills among learners
3) To explain the core concepts of business finance and its importance in managing a business
There are 4 main units in Accounting for Managerial Decision:
Unit 1 – Analysis and Interpretation of Financial statements – 15 lectures
Unit 2 – Ratio Analysis and Interpretation – 15 lectures
Unit 3 – Preparation of cash flow statement (Accounting Standard – 3 Revised) – 15 lectures
Unit 4 – Working Capital – 15 lectures
The following are the sub-topics in the main units:
Unit 1 – Analysis and Interpretation of Financial Statements
- Study of balance sheet of limited companies schedule VI-(New.).
Study of Manufacturing, Trading, Profit and Loss A/c of Limited Companies- Schedule VI (New)
- Vertical Form of Balance Sheet and Profit & Loss A/c-
Comparative Statement & Common Size.
Unit 2 – Ratio analysis and Interpretation
(Based on vertical form of financial statements)
including conventional and functional classification restricted to:
- Balance sheet ratios:
Stock Working capital ratio,
Debt Equity Ratio,
Capital Gearing Ratio.
- Revenue statement ratios:
Gross profit ratio,
Net profit ratio,
Net Operating Profit Ratio,
Stock turnover Ratio,
Creditors Turnover Ratio
- Combined ratios:
Return on capital Employed (including Long term borrowings),
Return on Proprietors fund (Shareholder fund and Preference Capital),
Return on Equity Capital,
Dividend Payout Ratio,
Debt Service Ratio,
- Different modes of expressing ratios:-
Rate, Ratio, Percentage, Number.
Limitations of the use of Ratios.
Unit-3 Preparation of cash flow statement (Accounting Standard-3(revised)
Unit-4 Working capital–
Estimation of requirements in case of Trading & Manufacturing Organizations.
Meaning & Importance,
Credit Policy Variables,
Methods of Credit Evaluation (Traditional and Numerical-Credit Scoring);
Monitoring the Debtors Techniques [DSO, Ageing Schedule]
- Srivastava R M, Essentials of Business Finance, Himalaya Publications
- Anthony R N and Reece JS. Accounting Principles , Hoomwood Illinos , Richard D. Irvin
- Bhattacharya SK and Dearden J. – Accounting for Management. Text and Cases , New Delhi.
- Hingorani NL and ramanthan AR – Management Accounting , New Delhi
- Ravi M. Kishore , Advanced management Accounting , Taxmann , NewDelhi
- Maheshwari SN – Management and Cost Accounting , Sultan Chand , New Delhi
- Gupta , SP – Management Accounting , Sahitya Bhawan , Agra .