Cost and Works Accountants Act, 1959
48. Papers and Syllabus for Part I of Management Accountancy Examination
Candidates for Part I of the Management Accountancy Examination shall be examined in the following groups and subjects.
Paper 1 : Management Accountancy
(One Paper: 3 hours: 100 Marks)
Higher treatment of the topics covered in 'Financial Management' paper of the Final Examination syllabus, in addition, the following topics:
Capital: Problems of capitalization, requirement, sources, period and application, capital Reserves, Reserves for specific and general contingencies. Return on capital Depreciation policies, Insurance for safety to guard against a loss of property or income, and to comply with statutory obligations. Problems of the change of purchasing power of money on business finance.
Forecasting: Forecasting and its relation to regulation of capital for short, medium and long term periods. Relationship between sales, production and other functional budgets, Cash forecasts.
Control: Comparisons of current and short-period costs with standard costs, and Examination of deviations. Periodical or ad hoc statements to examine progress or compliance with laid down plans. Relating figures to responsibilities. Measurement of productivity and efficiency. Relating business policy to national policy indicating social obligations of the individual undertaking.
Reporting : Presentation of annual accounts :.Company Laws requirements- meaningful display of financial data. Financial and Cost Accounting analysis reporting for managerial control.
Paper 2: Advanced Management Techniques
(One Paper: 3 hours : 100 Marks)
What Management is ? Objectives and Functions of Management. Process and Organization for Management.
Production, Planning and Control: Objectives, Planning, routing, scheduling dispatching. Progress Control; Inspection and Quality Control. Economic Batch Quantity. Tools, Jigs, Fixtures and Tool- room; Maintenance; Material Management and Inventory Control; Standardization, Simplification and Specialization; Interchangeability. Shipping: Job Estimating (For quotations): internal Transportation; Research, Development and Design. Operational Research; Value Analysis and Value Engineering; Organization and Methods. Latest techniques of taking managerial decision. Product- pricing. Intra-Company Transfers. Inter-firm Comparison. Cost Reduction.
Paper 3: Industrial Relations and Personnel Management
(One Paper: 3 hours: 100 Marks)
Public Relations : Industrial laws and rules. Government Departments. Local Authorities. Chambers of Commerce. Trade Associations. Technical and professional bodies. Trade Unions. Public Relations Department: Interpretation of labor policies and programmes to employees and to the outside public; Maintenance of good relations with public organizations, like newspapers, radio, Government agencies and consumer organizations.
Industrial Psychology: Principles and methods of Industrial Psychology. Individual differences in regard to general intelligence and smartness, intellectual and manual attainments and special aptitudes. Improvements effected by improved working conditions. Character, personality and temperament. Psychology and technique of interview. Guidance in and selection of vocations. Psychological aspects of industrial education and training, work incentives and work study. Industrial accidents and accident proneness. Environment-physical, mechanical and organizational. Fatigue, monotony and boredom; decreasing fatigue and occupational hazards. Psychology of the working group. The morale of the workman. Factors constituting the morale: pay: security; personal interest in work; status in the Industry; treatment as a human being; importance attached to employee-opinion. Beneficial leadership of persons in authority.
Employment of Personnel: Sources of labor supply (from within the organization as well as from outside sources). Procedure for employment; interview; recommendations; personnel investigation; tests and physical examination. Job specifications, terms of employment, wage scales.
Labor Relations: Transfer, promotion, demotion, discharge, lay off and quit of staff. Labor-Management conflict, its evil effects and remedies. Wage Boards, Joint Councils, etc. Employer-Employee co-operation in (i) scrap reduction; (ii) quality maintenance of products. Labor turnover. Collective Bargaining. Management and Labor Union; Security of the Union, the Worker and the Employer. Labor absenteeism. Effects of labor legislations. Case law developing through Industrial Appellate Tribunal Awards, Emphasis on Standing Order and Departmental Procedure. Employee Training-Apprenticeship training; ordinary training for jobs; tests for accident-proneness; Foreman's Manual; Training for clerical staff.
Employee Counseling: Offering advice to an employee about his personal problems and difficulties, even apart from those relating to his employment. Safety-causes and costs of accidents. Occupational diseases. Accident frequency rate. Safety programmes.
Health and Recreation: Sanitary measures; hygienic (baths, lavatories, etc.) and medical series (first aid, hospitalization, surgical benefits and other free medical services); recreation clubs and other games and sports arrangements. Health insurance schemes.
Employee Services: Government life insurance; Canteen or Cafeteria; Company's or Employees' Co-operative Stores; Retirement and Pension plans; Holidays with pay; Provident Funds and Gratuities; Housing Loans; Co-operative Credit Societies; Employee publications; Creches for children of women employees; Suggestive Systems; etc.
Method Study : Definition and objectives. Analysis of operations. Operation process chart recording steps of work. Analysis of Flow Process Chart. Improvements in factory layout and organization. Steps in motion analysis. Motion economy. Layout of work-place. Man and Machine Chart analysis. Factory tools and equipments. Elimination of waste. Studies in fatigue. Working Conditions. Human problems relating to workmen and management.
Time Study: Definitions and objectives. Organization and personnel. Equipment. The technique of making a study. Skill, effort and working conditions. Securing Standard times. Computing standard allowances, Preparations, idle-time, fatigue and working conditions. Standard data and their uses.
Wage Principles: Underlying principles of wage payments. Job evaluation; Merit Rating. Time and piece work payments. Bonus Schemes. Utility of and principles governing incentive schemes. Individual and group incentive schemes. Miscellaneous financial and non-financial incentive to improve output and efficiency.
Paper 4: Marketing Organization and Methods.
(One Paper: 3 hours: 100 marks)
Marketing Functions : Sales, Sales promotion including publicity and advertisement; Market Research; Sales Planning, Forecasting, Market Analysis and Method of Distribution; Price Policy.
Sales Budget : Formulation of sales policy and marketing activities, Sales promotion including advertising. Wholesale and retail sales and sales direct to consumers, sales planning and channel of distribution. Determination of selling price. Types of retail stores; Single unit, Multiple Shops, Departmental Stores, Consumers' Co-operative, House-to-house selling and mail order business. Sale of raw materials through produce exchanges. Village Fairs, Market Research.
Sales Organization : United control under the Sales Manager filtering through operational and functional managers. Breakdown into areas and branches. Sales programmes and campaigns. Traveling salesmen and representatives. After-sale services. Training of Salesmen and Servicemen. Selling remuneration: Salary, commission, brokerage, bonus and other contributions, besides actual traveling and other more direct selling expenses. Public contracts.
Control of Sales : Maintenance of records of customers, travelers and territorial results. Statistics, correspondence and instructions to dispatch department and factory. Co-ordination with other divisions of the enterprise: Purchase, Store-keeping Design, Production and Transportation. Comparison of achievements against targets. Export Promotion-Government Incentives. Export -Import policy-trade agreements.
Paper 5 : Economic Planning and Development
(One paper: 3 hours: 100 marks)
Definition of Economic Planning: Objectives, limitations and essentials of planning; Communistic vs. Democratic Planning; Imperative and indicative planning; planning in backward areas. Different aspects of economic development: Economic consideration; Financial aspects; sources of finance.
Economic Planning and Development in India: Mixed Economy. Five-year Plans and industrial developments. Specific areas of economic and industrial development: Small-scale and large-scale industries; Nationalisation. Appraisal of achievements; Deficit financing; Inflation; Taxation and public debt; Financial Institutions; Problems of population explosion and economic growth; Food problem and food policy; Agricultural developments; Tariff policy; Foreign Exchange Control; Foreign private investments; Climate and policy of Foreign investment; Foreign Trade Policy.