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Cost & Management Accounting and Financial Management (Paper-10) CMA Inter Group 2

Syllabus

SECTION A: COST & MANAGEMENT ACCOUNTING: (50 MARKS)
1. Cost and Management Accounting:
  • Introduction to Management Accounting – Relationship between Management Accounting and Cost Accounting
2. Decision-Making Tools:
  • Marginal Costing : Break Even Analysis and cost-volume-profit analysis; break-even charts and profit charts; differential cost analysis; stock valuation under marginal costing vs. absorption costing; applications of marginal costing in decision making
  • Transfer Pricing – Determination of Inter-departmental or Inter-company Transfer Price
3. Budgeting and Budgetary Control:
  • Budgetary Control and Preparation of Functional and Master Budgeting
  • Fixed, Variable, Semi-Variable Budgets
  • Zero Based Budgeting (ZBB)
4. Standard Costing & Variance Analysis:
  • Computation of variances for each of the elements of costs, Sales Variances, Investigation of variances – Valuation of Stock under Standard Costing – Uniform Costing and Inter-firm comparison
5. Learning Curve:
  • Concept of Learning curve and its application

SECTION B: FINANCIAL MANAGEMENT (50 MARKS)
6. Introduction to Financial Management:
  • Meaning – Objectives – Scope of Financial Management sources of Finance –Introduction to Financial Markets
7. Tools for Financial Analysis and Planning:
  • Financial Ratio Analysis – Funds Flow Analysis – Cash Flow Analysis
8. Working Capital Management:
  • Working Capital Management – Financing of Working Capital
9. Cost of Capital, Capital Structure Theories, Dividend Decisions and Leverage Analysis:
  • Meaning of Cost of Capital – Computation of Cost of Capital – Capital Structure Theories and Dividend Decisions Theories (Walters – MM – Gordon Models) – Leverage Analysis
10. Capital Budgeting – Investment Decisions:
  • Concept of Capital Budgeting – Non-Discounted and Discounted Cash Flow Method – Ranking of Projects.