CHSE Odisha Fundamentals of Management Accounting study guide
CHSE Odisha Fundamentals of Management Accounting · Work through your exam, one topic at a time.
The CHSE Odisha Fundamentals of Management Accounting is a subject within the Accountancy elective for the Council of Higher Secondary Education (CHSE) Odisha +2 Commerce stream. It introduces students to the use of accounting information for internal decision-making rather than external reporting. The CHSE Odisha Fundamentals of Management Accounting study guide has 9 sections and about 2,936 words.
01Nature, Scope and Functions of Management Accounting
Management accounting identifies, measures, analyses and communicates financial and non-financial information so that management can plan, coordinate, control and decide. The exam tests whether you can distinguish it from financial and cost accounting, name its tools, and state its limitations - not merely recite a definition.
341 words, about 2 min02Financial Statement Analysis: Comparative and Common-Size Statements
Both are forms of statement analysis that help compare one entity across periods or across firms of different size. They are not ratio analysis, though they are used alongside it.
358 words, about 2 min03Ratio Analysis
Liquidity: current ratio (CA ÷ CL), quick or acid-test ratio ((CA − stock − prepaid) ÷ CL), absolute liquid ratio (cash + marketable securities ÷ CL). Solvency/leverage: debt–equity ratio, debt to total funds, proprietary ratio, interest coverage (EBIT ÷ interest), capital gearing.
299 words, about 1 min04Funds Flow and Cash Flow Analysis
"Funds" here means net working capital (current assets − current liabilities). The funds flow statement lists sources (issue of shares and debentures, long-term loans, sale of fixed assets, non-operating income, decrease in working capital) and applications (redemption of shares or debentures, purchase of fixed assets, payment of dividend and tax, increase in working capital).
322 words, about 2 min05Cost-Volume-Profit Analysis and Break-Even Point
Contribution = Sales − Variable Cost = Fixed Cost + Profit. P/V ratio = Contribution ÷ Sales = (Sales − Variable Cost) ÷ Sales.
336 words, about 2 min06Budgeting and Budgetary Control
A budget is a quantitative expression of a plan for a defined future period. Budgetary control is the establishment of budgets, continuous comparison of actual with budgeted results, and corrective action.
319 words, about 2 min07Standard Costing and Variance Analysis
A standard cost is a predetermined estimate of what a unit should cost. Variance = Standard − Actual; if standard cost exceeds actual cost the variance is favourable , otherwise adverse .
305 words, about 2 min08Marginal Costing and Decision Making
Marginal cost is the variable cost of one additional unit. Under marginal costing, stock and work-in-progress are valued at variable cost only, fixed costs are written off against contribution, and profit = contribution − fixed cost.
338 words, about 2 min09Responsibility Accounting and Contemporary Management Accounting Concepts
Responsibility accounting assigns revenues and costs to the managers accountable for them. The centres are cost centre (accountable for costs), revenue centre (for revenue), profit centre (for both, hence contribution or profit) and investment centre (for profit and the assets employed).
318 words, about 2 min