COST ANALYSIS AND CONTROL

Paper Code: 
DATG 813
Credits: 
04
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

  Course Outcomes

Learning and teaching strategies

Assessment Strategies

 
 

On completion of this course, the students will be able to:

CO 246:Understand the theory of price and its implications, including pricing in recession and below marginal cost. Gain proficiency in utilizing the learning curve theory.

CO 247:Analyze transfer pricing methods, decision-making in diverse circumstances, and apply cost reduction and value analysis techniques.

CO 248:Apply statistical and operations research techniques for cost control, including inventory models, decision-making under uncertainty, and variance investigation models.

CO 249:Gain insights into recent cost management developments, including TQM implementation, JIT prerequisites and impact, and life cycle costing strategies and benefits.

CO 250:Gain knowledge of process innovation, Business Process Re-engineering (BPR), target costing, and Pareto Analysis, and apply them for improved profitability and cost control.

Interactive Lectures, Discussion, Tutorials, Reading assignments & Solving Questions.

Self learning assignments, Effective questions, Seminar presentation, Giving tasks.

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group Projects

  

 

12.00
Unit I: 
UNIT 1

Pricing Decisions                                                                                              

  • Theory of price, Pricing under different market structures
  • Pricing policy
  • Pricing methods: Cost based, Competition Based, Value Based
  • Pricing in period of recession, pricing below marginal coat
  • Strategic pricing of new products: skimming pricing, penetration pricing.
  • Learning Curve Theory

 

12.00
Unit II: 
UNIT II

Transfer Pricing                                                                                            

  • Utility
  • Methods: market based, Cost based and Negotiation based Transfer pricing
  • Transfer Pricing Decisions in different Circumstances.
  • Cost reduction and Value analysis

 

12.00
Unit III: 
UNIT III

Statistical and OR application for Cost Control:                             

  • Decision making under certainty - only Inventory model techniques
  • Decision making under uncertainty and risk
  • Models for Variance Investigation

 

12.00
Unit IV: 
UNIT IV

:   Recent Developments In Cost Management                                        

  • Total Quality Management(TQM)- Six C’s of TQM, Implementation of TQM, Criticism of TQM,
  • Just In Time(JIT): Essential Pre-requisites of JIT system, Impact, Performance measurement, Back-flushing in JIT system.
  • Life cycle costing: Product life cycle, life cycle characteristics, strategies, benefits, uses.

 

12.00
Unit V: 
UNIT V

Process Innovation and Business Process Re-engineering                        

·       Process innovation, Principles of BPR, Main stages, difference between BPR and PI

·       Target Costing-  Advantages, main features, components of target costing system, problems with target costing, impact on profitability, target costing control points, implementation of target costing system.

Pareto Analysis: Usefulness and application                 

Essential Readings: 

SUGGESTED TEXT BOOKS

  • Jain, Khandelwal &Pareek, Cost Accounting Ajmera Book Company, Jaipur
  • Agarwal, Jain, Sharma, Shah & Mangal, Cost Accounting   Ramesh Book Depot, Albright, S. C., Winston, W. L., & Zappe, C. (2019). Data Analysis and Decision Making (6th ed.). Cengage Learning.

e RESOURCES:

REFERENCE JOURNALS:

  • The Indian Journal of Commerce           
  • FIIB Business Review

 

Note  The candidate shall be permitted to use battery operated pocket calculator that should not have more than 12 digits, 6 functions and 2 memories and should be noiseless and cordless

 

References: 

SUGGESTED REFERENCE BOOKS

  • Arora, M.N.,Cost Accounting Principles and Practice, Vikas Publication, New Delhi
  • Kishore R.M.., Cost Accounting Taxmann’s New Delhi
  • Nigam, B.M Lal,&  Jain, I.C. ,  Cost Accounting    PHI, New Delhi
  • Maheshwari, S.N,  Cost Accounting Mahavir Publication
  • JawaharLal,  Cost Accounting  Tata Mcgraw Hill, New Delhi  
  • Madegowda. J. Cost Accounting  Himalaya Publishing House
Academic Year: 
2023-2024
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