jgibs

Journal of Global Information and Business Strategy

0976-49252582-6115

Gitarattan International Business School

jgibs-4-1-012

BOOK REVIEW

Management accounting

Rustagi

R.P.

Dr.¹

¹Taxmann Publications Pvt. Ltd., Edition : Second Edition 2011, No. of Pages : 544, Price : 475

11-122012

41109109

2012

IndianJournals.com

Due to increasing interest in the field of using tools of accounting for decision making, numerous books are being published on “Management Accounting’. The book under review is not just another book in this domain. Since managers of today are confronted with decision making on a daily basis, a management accounting book should anchor practitioner issues and interests. Each chapter of this book starts with an overview and learning objectives and synopsis of the contents to be covered in the subsequent pages, and thereafter, a detailed description of the subject matter which is presented in a very understandable manner. The chapter concludes with ‘points to remember’ followed by ‘Multiple Choice Questions’ covering every aspect discussed in the chapter. Self Assessment Assignments are also given in the end. This is where this book scores over other books. The questions and assignments given at the end of the chapter are highly relevant for the managers and students. This book is a valuable resource for the students of CA, CWA, MBA, PGDM, CFA, M.Com and other courses in commerce and accounting.

This book has been split into five parts. Part I gives an overview of management accounting with a fresh perspective. Part II comprises of 4 chapters dealing with types of financial statements and its analysis, statement of changes in financial position, financial planning, and forecasting and external funds requirements. Part III of the book comprises of 4 chapters on cost concepts, job order and contract costing, process costing, absorption costing and variable costing. Part IV of the book comprises Cost-Volume-Profit Analysis, relevant costs and alternate choice decisions and Activity based costing. The book concludes with Part V comprising of 3 chapters on budgeting, standard costing and responsibility accounting.

Both students and professors of management accounting will gain valuable insights from the book as most of the aspects of management accounting are dealt with in an easy to understand manner. On the whole, this book is a substantive addition to the management accounting domain. The author has viewed a host of concepts and practices from novel perspectives throwing remarkable light on every aspect. It is excellent for developing a conceptual understanding of the subject matter but the problem that is identified is that the book should throw more light on the issues for management students by incorporating case studies of India and abroad which are of great interest to those students who have a critical bent of mind. This addition could give it a more managerial flavor rather than an accountant’s perspective. Then the researchers and teachers of the subject will also be benefitted who can relate the difficult concepts to the real life situations.