Cost Analysis & Control

Paper Code: 
ATG-424
Credits: 
6
Contact Hours: 
90.00
Max. Marks: 
100.00
Objective: 

Objectives: The objective of this course is to -

  • Gain  knowledge of techniques of Cost Analysis and Cost Control.
  • Discuss  appropriate method of costing and apply it in real life situations

 

Course

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

ATG 424

Cost Analysis and Control

CO 90: Explain the role of cost data in pricing decisions

CO 91: Describe some of the techniques and processes that are available to assist managers in planning and controlling organizational activities;

CO 92: Analyze the linkage between cost data and systems and the organization of activities and resource flows in a range of manufacturing and service activities

CO 93: Evaluate the appropriate method of costing and apply it in real life situations with the help of simple case studies.

CO 94: Develop strategies for managing costs

 

Approach in teaching:

Interactive Lectures, Discussion, Tutorials, assignments.

 

Learning activities for the students:

Self learning assignments, Effective questions,  Giving tasks, Solving numerical problems

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments,  Individual projects

 

 

14.00
Unit I: 
.

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

14.00
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

18.00
Unit III: 
.

Statistical and OR application for Cost Control: Decision making certainty- only Inventory model techniques, Decision making under uncertainty and risk, Models for Variance Investigation

22.00
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.

22.00
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:Usefullness and application.

Essential Readings: 
  1. Cost Analysis and Cost Control: Oswal, Modi , Mangal, (Ramesh Book Depot)
  2. Advanced Cost Accounting: Oswal, Modi , Mangal, (Ramesh Book Depot)
  3. Cost Accounting-Bhabhatosh Banerjee ( World Press P Ltd)
  4. Cost Accounting and Cost Control-Oswal, Bidawat and Mangal( Ramesh Book Depot)

 

References: 
  1. Principles and Practice of Cost Accounting (N.K Prasad(Book Syndicate Pvt ltd)
  2. Cost Accounting: A Managerial Emphasis-C.T Horn Green (Prentice Hall of India)
  3. Cost Audit and Management Audit-J Tikhe(Baglore Chapter of Cost Accountants)
  4. Cost Accounting Planning and Control-Mariz A and Usry, M.F

 

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

 

Academic Year: 
2019-2020
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