Accounting For Business Decisions MBA Syllabus Pune University. This is new revised syllabus for Academic Year 2013 – 14.

Subject Name: Accounting For Business Decisions

Subject Type: Generic Core

Subject Code: 101

Marks: 100

Distribution of Marks: 50 (External Written) 20 (External Online Exam) 30 (Internal Marks by College)

Unit 1 Basic Concepts:

Overview of Financial Accounting, Cost Accounting and Management Accounting, Role of each in a business organization, Relationship between financial, cost and management accounting, Various concepts and conventions of financial accounting, Basics of cost accounting, Role of management accounting in the global business environment.( 7 + 2 )

Unit 2 Understanding of Financial Statements:

Financial statements of proprietary and partnership organizations, Financial statements of limited companies, schedule VIth of Companies Act, Objectives of financial statements.( 6 + 2 )

Unit 3 Cost Accounting:

Basic concepts of Cost Accounting, Classification and analysis of Costs, Relevant and irrelevant costs, differential costs, sunk costs, objectives of Cost Accounting, preparation of Cost Sheets. ( 6+2 )

Unit 4 Cost Control:

Elements of costs, Material cost control, Procurement,Pricing of issues, Inventory control techniques, fixation of various levels , Economic Order Quantity, material losses , labour cost control , time keeping and time booking ,labour turnover , overheads , collection, classification, absorption of overheads.( 8+2 )

Unit 5 Decision making tools:

Marginal costing, Make or buy , Optimizing product mix , Break-even point , Cost Volume Profit Analysis, Pricing decisions, budgeting – Cash, flexible and functional budgets. Variance Analysis – Material and Labour Cost Variances. ( 8+2 )


1 Numerical Problems will be asked on the following topics:

• Pricing of issues – FIFO, LIFO, Simple Average and Weighted Average methods

• Allocation, Apportionment and Absorption of overheads.

• Decision Making tools – optimizing product mix, make or buy, acceptance of export order and other Decision Making areas.

• Computation of breakeven point and related areas.

• Budgeting – cash and flexible.

• Computation of material and labour variances

2 Weightage of Theory Questions will be 40% and numerical problems will carry 60% marks in the final question paper.

Text Books

• Management Accounting – Dr. Mahesh Kulkarni

• Accounting For Business Decisions by Dr. E B Khedkar and D B Bharati

Reference Books

• Financial Cost and Management Accounting – P Periasamy

• Management Accounting- Madhu Vij

• Fundamentals of Management Accounting – H. V Jhamb

• Cost and Management Accounting – M N Arora

• Financial Accounting for Managers – Mr. Sanjay Dhmija, Pearson Publications

• Management Accounting – Mr. Anthony Atkinson, Robert Kaplan, Pearson

• Management Accounting – Mr. Khan and Mr. Jain, Tata McGraw Hill

• Financial Accounting part I – Mr. S. N. Maheshwari

• Accounting For Management-Jawarhar Lal

Supplementary Reading Material

• Management Accounting – Mr. Ravi Kishore

• Accounting for Managers – Dearden and Bhattacharya


• Institute of Cost Accountants,

• Institute of Chartered Accountants


• Indian Journal of Finance