Skip to main content

Management Accounting


Module 1: Introduction to Management Accounting

Module 02: Product Costing and Activity Based Costing

Module 03: Cost Analysis for Decision-Making

Module 04: Budgeting and Variance Analysis

Introduction

The Situation: A Meeting at the Company Girish (President) Praised the company’s performance — n...

Strategic Planning and Budgets

What is a Vision Statement? A Vision Statement describes what the company wants to become in the...

Budgeting Process

What is Budgeting? Budgeting is a structured planning process developed over time. It involves ...

Types of Budgets

📌 Why Different Types of Budgets? Organizations face different operational needs, resource constr...

Benefits of Budgets

Budgeting is not just about forecasting numbers—it is a strategic management tool that guides pla...

Approaches to Budget Preparation

1. Imposed Budget Also known as Top-Down Budgeting Suitable for: Start-ups Small businesses Ti...

Preparation of Master Budget

1. Sales Forecast Month Last Year Sales (KG) Forecasted Sales (KG) Selling Price (Rs./KG) ...

Budget Slack

1. Planning and Controlling in Budgeting Planning is the primary objective of the budgeting exe...

Variance Analysis

1. Role of Budget in Performance Monitoring Budgets are prepared as part of the planning process...

Setting standards

1. Importance of Setting Standards Standards are critical for effective control in budgeting. T...

Variance Analysis: General Framework & Labour Cost Variance

1. Purpose of Variance Analysis Compares actual performance with budgets and standards. Helps ma...

Variable & Fixed Overhead Variance

1. Variable Overhead Variance (VOH) Concepts VOH Rate: Pre-determined during budgeting. Applied...

Material Mix and Yield Variance

1. Introduction In many industrial products (e.g., pharmaceuticals, food), multiple materials or...

Sales and Sales Mix Variance

1. Introduction Variance analysis is not limited to costs—it also applies to revenues. Actual sa...

Investigating Variance

1. Variance Reporting Process The IT department typically generates and circulates variance repo...