Course Content
Accounting Principles and Standards, Preparation of Financial Statements
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Accounting Concepts and Principles: Theoretical Framework
Accounting Standards : IFRS, IAS & GAAP
Responsibilities of IASB
Indian Accounting Standards (Ind AS)
Types of Account
Types of Expenditure
Financial Statement Analysis: Ratio Analysis, Funds Flow and Cash Flow Analysis, DuPont Analysis
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Financial Statements List
Important Terms
Ratio Analysis
Funds Flow Analysis
Flow of Funds
Cash Flow Analysis
Ind AS 7: Cash Flow Statement
DuPont Analysis
Preparation of Cost Sheet, Marginal Costing, Cost-Volume Profit Analysis
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Important Principles in Cost Accounting
Implicit Cost & Explicit Cost; Accounting Profit & Economic Profit
Law of Diminishing Returns
Economic Theory of Production
Production Theory in Micro Economics
Special Types of Costs
Cost Theory in Economics
Short-Run Costs in Perfect Competition
Marginal Revenue & Profit Maximizing Rule
Shutdown Rule in Short Run
Short Run in Monopoly
Preparation of Cost Sheet
Fixed Costs (F.C.) , Variables Costs ( V.C.) and Contribution Margin
P/V ratio ( Profit / Volume ratio)
Break Even Point (B.E.P.) & Margin of Safety (M.O.S.) & Law of Diminishing Return
Cost-Volume Profit Analysis
Standard Costing & Variance Analysis
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Inventory Valuation Method
Standard Costing
Material Variance
Volume Variance
Overhead Absorption Rate
Overhead Expenditure Variance
Variable Overhead Cost Variance
Overhead Spending Variance
Labour Efficiency Variance
Unit IV: Managerial Accounting

✅ Gross Profit Margin

Gross Profit Margin = Gross Profit / Sales = ( Sales − Cost of Goods Sold (COGS)) / Sales

✅ Explanation:
Gross Profit Margin measures the percentage of revenue that exceeds the cost of goods sold (COGS). It indicates how efficiently a company is producing and selling its goods relative to production costs.

  • Higher margin → Better cost control or premium pricing

  • Lower margin → Possible pricing pressure or rising input costs

✅ Debt Ratio

Debt Ratio = Total Debt / Total Assets

✅ Explanation:
The Debt Ratio measures the proportion of a company’s assets that are financed through debt. It reflects the firm’s financial leverage and risk level.

  • High debt ratio → Greater financial risk, more reliance on debt

  • Low debt ratio → More conservative capital structure

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