Coming soon
Performance Management
Course Objective:
This course will enable the students to gain knowledge and develop skills in the application of management accounting techniques to quantitative and qualitative information for planning, decision-making, performance evaluation and control.
Course Outcomes (COs):
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Course |
Course Outcomes |
Learning and teaching strategies |
Assessment Strategies |
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Course Code |
Course Title |
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24AAF211 |
Performance Management (Theory) |
CO43: Apply modern management accounting techniques and analyze the role of information systems in different business contexts to effectively manage and use resources CO44: Apply decision making techniques and pricing techniques for resource optimization, risk mitigation and promoting efficiency. CO45: Analyze various types of budgets and apply quantitative analysis and learning curve model for better decision making. CO46: Apply variance analysis and decision making techniques to reduce risk and uncertainty in business. CO47: Analyze the performance of profit making and not for profit making organisations, including divisional performance and behavioural aspects. CO48: Contribute effectively in course-specific interaction
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Approach for teaching: Interactive Lectures, Discussion, Tutorials
Learning activities for the students: Assignment, presentation s, group discussions
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Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Individual projects |
• Activity-based costing -Meaning, cost drivers, Calculation of costs per driver and per unit accounting using ABC, ABC vs traditional costing
• Target costing- Meaning, target costing in manufacturing and service industries, challenges of using target costing in service industries.
• Life-cycle costing - Meaning, Benefits, life cycle cost in manufacturing and service industries.
• Throughput accounting - Meaning, throughput accounting ratio (TPAR), Application of throughput accounting to a multi-product decision- making problem
• Environmental accounting -Meaning, challenges, for environmental costs.
• Performance management information, sources of management information, Information Systems- Transaction Processing System, Management Information Systems, Executive Information System, Expert System
• Uses and benefits of big data and data analytics for decision making and performance management
• Relevant Cost Analysis- Concept, identification and calculation of relevant costs, concept of opportunity costs, Make or buy decisions
• Cost Volume Profit Analysis- Meaning, limitations, Break-even point, Margin of safety, Multiproduct situation.
• Limiting Factors- Meaning, single and multiple scarce resource using simultaneous equations shadow prices (dual prices) and slack-
• Pricing Decisions- Price elasticity of demand, demand based approach to pricing Pricing strategies - cost-plus pricing, skimming, penetration, Complementary product, Product-line, Volume discounting, Discrimination
• Budgetary systems- Budgetary systems such as top-down, bottom-up, rolling, zero-base, activity base, incremental and feed-forward control, rolling busdget.
• Quantitative analysis in budgeting- high/low method, learning rate and learning effect, learning curve.
• Advanced variance analysis with Material mix and yield variances
• Sales mix and quantity variances-
• Planning and operational variances-
• Performance analysis with variances
• Risk and uncertainty in decision making - Use of expected value techniques, maximax, maximin,and minimax regret in decision-making , decision tree, value of perfect and imperfect information.
• Performance analysis in private sector organizations
• Balanced score card, Building block model
• Divisional performance and transfer pricing
• Performance analysis in not-for-profit organizations- value for money approach
• External considerations and behavioral aspects
1. Study Text of ACCA – F5, Kaplan Publishing
2. Exam Kit
1. PM Pocket Notes
2. PM Integrated Workbook Student
3. Management Accounting-Agrawal, Agrawal(Ramesh Book Depot)
4. Management Accounting-M.R Agarwal(Garima publications)
5. Management Accounting-Khan and Jain (Tata McGraw Hill)
6. Management Accounting and Financial Analysis-Dr S.N Maheshwari(S.Chand& Sons)
7. Cost Accounting Principles & Practices, M.N Arora .
8. Advance Management Accounting-R.S Kaplan& A.A Atkinson (Prentice Hall India New Delhi)
9. Management Accounting-Horngren
10. Management Accounting, Pearson Education.
11. Management Accounting Principles, Anthony Robert, R D. Irwin.
12. Cost & management accounting, Duncan Willianson, , PHI learning
E-Content:
1. PM technical articles and past papers
https://www.accaglobal.com/gb/en/student/exam-support-resources
2. Introduction to Management Accounting Elibrary.in.pearson.com
3. Managerial Accounting Elibrary.in.pearson.com
Reference Journals:
1. Indian Journal of Finance
2. International Journal of Financial Management
3. The Indian Journal of Commerce
4. IUP Journal of Accounting Research and Audit Practices
