This document outlines the 7 modules that make up the MBA3008 - Cost & Management Accounting course at BIRLA Institute of Technology, Ranchi, India. The modules cover topics such as the nature and scope of cost management, the behavior of fixed and variable costs, overhead cost distribution and allocation, management control systems, management information and reporting systems, cost effectiveness techniques, and recent trends in management and cost accounting. Reference books for the course include titles on cost and management accounting by Horngren, Arora, Khan, and Jain.

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