Accounting For Management

Description

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