| 2. | Cost Ascertainment |
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| | (a) | Material Cost |
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| | (i) | Procurement procedures— Store procedures and documentation in respect of receipts and issue of stock, Stock verification | | (ii) | Inventory control —Techniques of fixing of minimum, maximum and reorder levels, Economic Order Quantity, ABC classification; Stocktaking and perpetual inventory | | (iii) | Inventory accounting | | (iv) | Consumption — Identification with products of cost centres, Basis for consumption entries in financial accounts, Monitoring consumption. |
| | (b) | Employee Cost |
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| | (i) | Attendance and payroll procedures, Overview of statutory requirements, Overtime, Idle time and Incentives | | (ii) | Labour turnover | | (iii) | Utilisation of labour, Direct and indirect labour, Charging of labour cost, Identifying labour hours with work orders or batches or capital jobs | | (iv) | Efficiency rating procedures | | (v) | Remuneration systems and incentive schemes. |
| | (c) | Direct Expenses |
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| Sub-contracting — Control on material movements, Identification with the main product or service. | | (d) | Overheads |
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| | (i) | Functional analysis — Factory, Administration, Selling, Distribution, Research and Development
Behavioural analysis — Fixed, Variable, Semi variable and Step cost | | (ii) | Factory Overheads — Primary distribution and secondary distribution, Criteria for choosing suitable basis for allotment, Capacity cost adjustments, Fixed absorption rates for absorbing overheads to products or services | | (iii) | Administration overheads — Method of allocation to cost centres or products | | (iv) | Selling and distribution overheads — Analysis and absorption of the expenses in products/customers, impact of marketing strategies, Cost effectiveness of various methods of sales promotion. |
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| 3. | Cost Book-keeping |
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| Cost Ledgers—Non-integrated accounts, Integrated accounts, Reconciliation of cost and financial accounts. |
| 4. | Costing Systems |
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| | (a) | Job Costing
Job cost cards and databases, Collecting direct costs of each job, Attributing overhead costs to jobs, Applications of job costing. | | (b) | Batch Costing | | (c) | Contract Costing | | Progress payments, Retention money, Escalation clause, Contract accounts, Accounting for material, Accounting for plant used in a contract, Contract profit and Balance sheet entries. | | (d) | Process Costing | | Double entry book keeping, Process loss, Abnormal gains and losses, Equivalent units, Interprocess profit, Joint products and by products. | | (e) | Operating Costing System |
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| 5. | Introduction to Marginal Costing |
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| Marginal costing compared with absorption costing, Contribution, Breakeven analysis and profit volume graph. |
| 6. | Introduction to Standard Costing |
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| Various types of standards, Setting of standards, Basic concepts of material and Labour standards and variance analysis. |
| 7. | Bugets and Budgetary Control |
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| The Budget manual, preparation and monitoring procedures, budget variance, flexible budget, preparation of functional budget for operating and non-operating functions, cash budget, master budget, principal budget factors. |
| 1. | Scope and Objectives of Financial Management |
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| | (a) | Meaning, Importance and Objectives | | (b) | Conflicts in profit versus value maximisation principle | | (c) | Role of Chief Financial Officer. |
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| 2. | Time Value of Money |
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| Compounding and Discounting techniques— Concepts of Annuity and Perpetuity. |
| 3. | Financial Analysis and Planning |
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| | (a) | Ratio Analysis for performance evaluation and financial health | | (b) | Application of Ratio Analysis in decision making | | (c) | Analysis of Cash Flow Statement. |
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| 4. | Financing Decisions |
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| | (a) | Cost of Capital — Weighted average cost of capital and Marginal cost of capital | | (b) | Capital Structure decisions — Capital structure patterns, Designing optimum capital structure, Constraints, Various capital structure theories | | (c) | Business Risk and Financial Risk — Operating and financial leverage, Trading on Equity. |
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| 5. | Types of Financing |
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| | (a) | Different sources of finance | | (b) | Project financing — Intermediate and long term financing | | (c) | Negotiating term loans with banks and financial institutions and appraisal thereof | | (d) | Introduction to lease financing | | (e) | Venture capital finance. |
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| 6. | Investment Decisions |
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| | (a) | Purpose, Objective, Process | | (b) | Understanding different types of projects | | (c) | Techniques of Decision making: Non-discounted and Discounted Cash flow Approaches — Payback Period method, Accounting Rate of Return, Net Present Value, Internal Rate of Return, Modified Internal Rate of Return, Discounted Payback Period and Profitability Index | | (d) | Ranking of competing projects, Ranking of projects with unequal lives. |
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| 7. | Management of Working Capital |
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| | (a) | Working capital policies | | (b) | Funds flow analysis | | (c) | Inventory management | | (d) | Receivables management | | (e) | Payables management | | (f) | Management of cash and marketable securities | | (g) | Financing of working capital. |
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