Management Accounting- Meaning - Objectives and Scope- Relationship between Management accounting, Cost accounting and Financial accounting – Financial statement analysis - Common size statements, Comparative statements and Trend analysis.

Analysis of financial strength: Ratio analysis – Uses and limitations- Analysis of liquidity, solvency and profitability - Construction of balance sheet.

Analysis of financial behavior: Fund flow Statement - Balance SheetVs Fund Flow Statement – Assessment of increase or decrease in working capital – Components of funds from operation – Preparation of fund flow statement. Cash flow statement: Cash flow in operating, financing and investment activities (As per AS-3 Revised 1997). Fund flow statement vs. Cash flow statement.

Marginal Costing and Break Even Analysis - Managerial Applications of marginal costing - Significance and limitations of marginal costing.

Budgeting and budgetary control: Definition – Importance - Budget manual – Budget committee - Essential, classification of budgets - Master budget – Preparation of cash, sales, purchase, material, flexible and Production budgets. Zero based budgeting (Theory only).