1.Introduction to Management Accounting
a. The scope and purpose of management accounting
b. The role of management accounting in management process
c. Application of IT in management accounting
d. Application of management accounting in service organizations
2.Cost Concepts, Classification and Behaviors
a. Cost concepts
b. Classification of costs:
o Manufacturing & non-manufacturing costs
o Period and product cots
o Controllable and non-controllable costs, sunk cost, differential cost, committed cost, opportunity cost
o Fixed, variable and semi-variable costs.
c. Estimation of cost behaviors:
o Types of cost behavior patterns, variable costs
o Semi-variable costs and relevant range
o Fixed costs and relevant range
o Mixed cost and its analysis
3.Cost Accumulation and Determination
a. Cost accounting cycle
b. Accounting and control procedures for raw materials, labor and overhead
c. Absorption and marginal costing
d. Activity based costing
4.Management Planning: Budget Process
a. Understanding the drivers of the bank’s budget
b. Budget theory
c. Budget preparation
d. Cost estimation and estimation techniques
e. Fixed and Flexible budgeting
f. Reporting of actual against budget
5.Control System and Evaluation of Managerial Performance
a. Use of budget for performance evaluation
b. Principles of standard costing
c. Preparation of standard costs
d. Variance analysis and investigation
e. Cost, profit and investment centre
f. Transfer pricing issues
g. Responsibility accounting, risk sharing and agency problems
h. Gross profit analysis
i. System development-design, confidentiality, exception reporting
6. Use of Information in Decision Making
a. Cost-volume-profit analysis
b. Contribution concept
c. Operating and financial leverage
d. Breakeven point, profit target, margin of safety
e. Limiting factor analysis
7. Operational Areas
a. Time value of money
b. Evaluation of investment projects; cost of capital, planning for capital expenditure, sensitivity analysis, leasing vs. investment decision, impact of tax and inflation on investment decisions.
c. Evaluation techniques:
i. Discounted Cash Flows
ii. Relative Method: P/E, P/B, P/CF, P/Sales
8. Product Profitability
a. Cost- plus loan pricing model
b. Price leadership model
c. Customer profitability analysis
d. Pricing customer loans
9. Asset Liability Management
a. Asset management strategies
b. Liability management strategies
c. Funds management strategies
d. Interest rate risk
e. Components of interest rate
f. Determining forces and measurement of Interest rates
10. Determining the Quality of Financial Statements
a. Income statement manipulations and detection
b. Balance sheet manipulations and detection
c. Determining the proportion of accruals in the financial statements
d. Determining the sustainable earnings
11.Forecasting Financial Statements
a. Designing realistic assumptions
b. Forecasting techniques
c. Forecasting each account individually
d. Incorporating internal and external factors
12.Company Valuations
a. Different parameters considered while evaluating a business entity
b. Important variables while evaluating a subsidiary or a holding company
