CHSE Odisha Fundamentals of Management Accounting study plan

Distinguish management accounting from financial accounting and cost accounting by listing at least five differences in scope, purpose, and reporting frequency.

Explain the functions of management accounting (planning, controlling, decision-making, performance evaluation) with one example each.

Define and compute the current ratio, quick ratio, and debt-to-equity ratio from a given balance sheet.

Interpret the meaning of each ratio and state the ideal range or benchmark for each.

Solve three practice problems on liquidity and solvency ratios without referring to notes.

Compute profitability ratios: gross profit margin, net profit margin, return on assets, and return on equity from given income statements and balance sheets.

Calculate activity ratios: inventory turnover, receivables turnover, and asset turnover, and explain their significance.

Analyze a company's financial health by calculating a comprehensive set of ratios from a provided annual report excerpt.

Identify limitations of ratio analysis and situations where ratios can be misleading.

Solve at least five exam-style ratio analysis problems under timed conditions (15 minutes each).

Prepare comparative income statements and balance sheets showing absolute and percentage changes, and interpret the results.

Construct common-size financial statements (each item as a percentage of revenue or total assets) and analyze trends.

Compute funds from operations and prepare a statement of changes in working capital.

Prepare a funds flow statement showing sources and applications of funds.

Distinguish between funds flow and cash flow statements and explain when each is used.

Prepare a cash flow statement using the indirect method for operating, investing, and financing activities.

Prepare a cash flow statement using the direct method for operating activities.

Reconcile net profit with net cash flow from operating activities by adjusting for non-cash items and working capital changes.

Interpret cash flow patterns (e.g., negative operating cash flow with positive investing cash flow) and assess liquidity and solvency implications.

Solve three comprehensive cash flow problems under exam conditions.

Calculate contribution margin, contribution margin ratio, and break-even point in units and in rupees.

Compute the margin of safety and explain its significance to management.

Determine the sales volume required to achieve a target profit, both before and after tax.

Construct and interpret a cost-volume-profit (CVP) graph, identifying the break-even point, profit area, and loss area.

Solve at least five CVP problems involving changes in fixed costs, variable costs, selling price, and sales mix.

Distinguish between fixed, flexible, and rolling budgets, and explain the advantages and limitations of each.

Prepare a sales budget, production budget, and purchase budget from given forecast data.

Prepare a cash budget on a monthly basis, incorporating lagged collections and payments.

Compute budget variances (favorable/unfavorable) for revenues and expenses and suggest corrective actions.

Explain the behavioral aspects of budgeting, including participation and budget slack.

Set standard costs for materials, labor, and overhead, and explain how standards are established.

Compute direct materials price and usage variances and direct labor rate and efficiency variances.

Calculate variable overhead spending and efficiency variances and fixed overhead expenditure and volume variances.

Interpret variances, identify possible causes, and determine whether they are controllable.

Solve at least four comprehensive standard costing problems with multiple variances.

Distinguish between absorption costing and marginal costing, and prepare income statements under both methods.

Reconcile the difference in profit between absorption and marginal costing using the change in inventory.

Apply marginal costing to decision-making: accept or reject a special order, make or buy, discontinue a product, and optimize a limiting factor.

Explain responsibility accounting, including cost centers, profit centers, and investment centers, and compute return on investment and residual income.

Describe contemporary concepts such as activity-based costing, target costing, and the balanced scorecard, and their relevance to management accounting.