1. BIRLA INSTITUTE OF TECHNOLOGY, RANCHI, INDIA
DEPARTMENT OF MANAGEMENT
MBA3008 – COST & MANAGEMENT ACCOUNTING
Module 1:
Nature & scope of cost Management: Meaning, objective, classification, element of cost, costing
system & method, cost center, cost unit, cost organisation and its relationship with other
department.
Module 2:
Behavior of cost: Fixed & variable cost, Direct & indirect costs, cost behavior for decision making,
Marginal costing; BEP analysis & CVP analysis, difference between marginal costing & absorption
costing
Module 3:
Overhead cost: Meaning & classification of overhead costs, Overhead distribution, allocation &
apportionment overhead (primary distribution), Principles & Bases of apportionment, Re
apportionment of services department cost (secondary distribution), absorption at overhead, type of
overhead rates.
Module 4:
Management control system: Management accounting system, need for detailed costing, difference
between cost & management accounting. Traditional Vs innovative management accounting
practices, development throughput accounting, lean accounting.
Module 5:
Mgmt information & reporting system: Enterprise performance measurement systems - balanced
score card, EVA, segment performance, life cycle costing, Activity Based Costing, transfer pricing.
Module 6:
Cost effectiveness: cost control, cost reduction, cost audit, responsibility costing, Standard Costing
& Variance Analysis (Material, Labour & Overhead)
Module 7:
Recent trend in management & Cost accounting: Trends related to changing business environment
with reference to case study.
Reference Books:
1. Cost Accounting – Charles T Horngren, Foster & Datar – Pearson Education Asia
2. Cost Accounting – M N Arora –Vikas Publication
3. Management Accounting – MY Khan & P.K Jain –TMH Publication