This post was last updated on 4-July-2017
Decision making is vital for all organisations and decisions cannot be made in haste. Organisations take adequate time to make successful decisions. Making right decisions at the right time is not easy and is always dependent on the kind of information that is available at the time of making decisions. Without information no decision can be made. For every decision we require valid and reliable information.
Information is necessary for making effective decisions. The company must have right information for making right decisions. Whatever decisions we make in our life are based on the information that we possess.
For instance, if you want to study MBA then you have to obtain relevant information such as
- How many MBA colleges are there in Hyderabad
- Which college is good?
- What is the fee structure?
- What are the timings?
- How far the college is from your room or home?
- What is the admission procedure?
- How can I take admission without entrance exam (ICET/CAT/MAT/CET)
- How is the infrastructure of the college?
- How is the faculty and what is the past and present student’s view regarding the college?
Once you collect the information on the above questions then only you can make a decision about the college where you want to study. Many times, either, the information is not available or plethora of information is available. In both the situations decision making is hampered.
Management Accounting provides the right information to the managers at the right time for effective decision making. Management accounting assists managers by providing them the information which is necessary for making right decisions.
Financial accounting provides information to Management accounting via financial statements i.e., Profit & Loss account and Balance Sheet. The Management Accountants will use the financial statements and they will put financial data in different format for better interpretation. This interpretation provides the information regarding the areas that should be improved or the areas that need more attention and this in turn helps in effective decision making.
This subject deals with interpretation of various business information for making successful decisions. The subjects starts with introduction of management accounting and how it is different from cost and financial accounting. The contents of this subjects are same as contents of B.COM final year subject Management Accounting or Cost and Management Acounting. B.com students will find this subject very easy they have already studied this in graduation.
Unit IV & Unit V contains very important topics that are necessary for MBA students. Better understanding of these topics is essential and they were not covered in B.com.
From this subject you can expect 3 practical problems such as
1. Problems on CVP analysis
2. Problems on Budgeting or Standard Costing
3. Problems on Responsibility Accounting or Activity Based Costing
The remaining topics are purely theory and much hard-work is needed from non b.com students to understand these concepts. With little effort you can understand these topic very easily.
Earlier, in 2002 OU MBA syllabus, this subject was named as Management Accounting and Control. In 2007 OU MBA syllabus, this subject was common paper for all MBA students in III semester same as TQM, IB, & MC…..Managerial Communication was earlier in second semester as Business Communication according to 2002 OU MBA syllabus. There was no subject on communication in OU MBA 2007 syllabus. From a common paper, SMA was made Finance specialization in 2010 OU MBA syllabus. 2010 syllabus is what we are currently following.
Anyways, this is scoring subject. If you practice above mentioned problems 5 times then you can easily understand them and solving them in examination can fetch you more marks. Remember! Whenever theory is written in finance papers, the marks scored are very less compared to students who attempted practical problems. Very rarely we will see few students who will score highest only by writing theory answers. These students are exception because they are exceptional.
BOOKS FOR STRATEGIC MANAGEMENT ACCOUNTING
The following three books are best books for this subject. You can refer these books as many concepts of SMA syllabus are covered in these books especially Customer Profitability Accounting, Transfer Pricing, Activity Based Costing, Responsibility Accounting, etc,.
If you want to follow Indian author’s text book, then you refer Indian author textbooks only for problematic part and not for theory. For theory you can use below mentioned books.
If you are unable to find any book that I am suggesting, then you can go to http://www.books.google.com. You can search the book there and hopefully you can refer few topics.
- Hansen& Mowen, “Management Accounting”, 2009, 7th ed. Cengage Learning, New Delhi.
- Ronald.W.Hilton, G.Ramesh&M.Jayadev, “Managerial Accounting”, 2008, Tata McGraw-Hill.
- Edward J. Blocher, Kung H. Chen, Gary Cokins and Thomas W. Lin, “Cost Management-A strategic Emphasis”, 2006, Tata McGraw Hill.
ALL THE BEST
New Syllabus CBCS-2016
Important Questions for Strategic Management Accounting II SEM CBCS 2016 Password is 78692sMaMrB22017