NTRCA college written syllabus

4 
 
 
o compute wages for  the 
guaranteed and 
incentive plans that may 
be used. 
 
o identify and compute 
the three methods for 
allocating budgeted 
service department costs 
to production dept. 
support d epartment cost to producing 
department: direct method, s tep down 
method, and reciprocal method.. 
 
 
 
 
 
 
 
 
 
 
 
 
 
o determine the cost of 
manufactured products 
using either direct or 
absorption costing and 
preparation of internal 
and external financial 
statements. 
 
o understand the 
assumptions of CVP 
relationship and to 
compute CM, BEP, 
target profit, and MS. 
 
o understand the 
importance of cash 
budget and prepare cash 
budget. 
 
o use flexible budget 
formula to construct a 
flexible budget based on 
the volume of 
productions or sales. 
 
Part-E 
 
Unit 9 & Unit 10: Management Accounting 
 
• Definition and importance of management 
accounting. 
 
• Financial Accounting Vs Management 
Accounting 
 
• Cost concept and classification 
 
• Define different costs for decision making: 
sunk cost, r elevant cost, irrelevant cost, 
differential cost , imputed cost, opportunity 
cost etc. 
 
• Absorption Costing (AC) and Direct Costing 
(DC), preparation of income statement under 
AC and DC. 
 
• Cost-Volume-Profit (CVP) relationship: 
CVP analysis, computing the BEP. 
 
• Preparation of cash budget 
 
•  Preparation of Flexible Budget 
 
20 marks. 
 
Answer any 
two 
questions 
out of 
three. 
 
10×2=20 
 
Questions will be prepared following Bloom’s taxonomy of cognitive learning. A minimum of 20% 
marks should be allowed to higher order questions which require analyzing, evaluating, complex problem 
solving or creating/synthesizing. Alternative questions must be prepared from the same part.