Here's your 🔥 Unit-wise Complete Revision Guide (Formulas + Formats + Theory) for
Management Accounting – 3rd Year B.Com (University of Madras)
This is structured exactly for last-day revision + exam writing.
📘 UNIT 1: INTRODUCTION TO MANAGEMENT ACCOUNTING
✅ Key Theory
Definition: Use of accounting data for decision-making
Nature:
Future-oriented
Analytical
Decision-based
✅ Objectives
Planning
Controlling
Decision-making
Coordination
✅ Tools
Ratio Analysis
Cash Flow
Budgetary Control
Marginal Costing
✅ Advantages
Helps management decisions
Improves efficiency
❌ Limitations
Based on estimates
No fixed rules
📘 UNIT 2: FINANCIAL STATEMENT ANALYSIS
✅ Comparative Statement (Format)
Particulars
Year 1
Year 2
Change
% Change
✅ Common Size Statement (Format)
Particulars
Amount
Percentage
👉 Formula: % = (Item / Base value) × 100
✅ Trend Analysis
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✅ Key Theory
Helps comparison
Identifies growth trend
Useful for decision-making
📘 UNIT 3: RATIO ANALYSIS
✅ Liquidity Ratios
Current Ratio = Current Assets / Current Liabilities
Quick Ratio = Liquid Assets / Current Liabilities
✅ Profitability Ratios
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Net Profit Ratio = Net Profit / Sales × 100
✅ Leverage Ratios
Debt Equity Ratio = Debt / Equity
✅ Format Tip (Exam)
Write Formula → Calculation → Result → Comment
📘 UNIT 4: CASH FLOW STATEMENT
✅ Format (Very Important)
Cash Flow Statement
A. Operating Activities
Net Profit
Add: Non-cash items
Less: Changes in working capital
B. Investing Activities
Purchase/Sale of assets
C. Financing Activities
Issue of shares
Loans
✅ Key Formula
Cash from Operations =
Net Profit + Non-cash expenses ± Working capital changes
✅ Steps
Start with net profit
Adjust non-cash items
Adjust working capital
Add investing & financing
📘 UNIT 5: MARGINAL COSTING (VERY IMPORTANT)
✅ Key Formulas
Contribution
Contribution = Sales – Variable Cost
P/V Ratio
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Break Even Point
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Margin of Safety
MOS = Actual Sales – BEP Sales
✅ Key Concepts
Fixed Cost → constant
Variable Cost → changes with output
Contribution → profit earning capacity
✅ BEP Chart (Theory Point)
X-axis → Output
Y-axis → Cost & Revenue
📘 UNIT 6: BUDGETARY CONTROL
✅ Budget
Financial plan for future
✅ Types
Fixed Budget
Flexible Budget
Cash Budget
✅ Flexible Budget Formula
Cost changes with activity level
✅ Cash Budget Format
Particulars
Month 1
Month 2
Month 3
Opening Balance
Add: Receipts
Less: Payments
Closing Balance
✅ Advantages
Better planning
Cost control
❌ Limitations
Time consuming
Based on estimates
🎯 MOST IMPORTANT FORMULAS (FINAL REVISION)
Contribution = Sales – Variable Cost
P/V Ratio
BEP
Margin of Safety
Current Ratio
Gross Profit Ratio
Cash from Operations
✍️ HOW TO WRITE IN EXAM (VERY IMPORTANT)
For Theory:
👉 Definition
👉 4–5 Points
👉 Conclusion
For Problems:
👉 Formula
👉 Substitution
👉 Answer
⚡ LAST MINUTE STRATEGY
If time is less, study only:
Marginal Costing (Full)
Cash Flow Statement
Ratio Analysis
Financial Statement Analysis
👉 This alone can get 60+ marks
If you want, I can also give: ✅ Important 10-mark answers (ready to mug up)
✅ Previous year question paper (University of Madras)
✅ Expected 2026 questions with answers
Just tell me 👍