Coming soon
Performance Management
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.
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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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25AAF211 |
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 performanceof profit making and not for profit making organisations, including divisional performance and behavioural aspects. CO48: Contribute effectively in course-specific interaction |
Approach in teaching: Interactive Lectures, Tutorials, Discussions, Problem Solving Sessions, Presentations
Learning activities for the students: Self-learning assignments, Case Study Analysis, Application based questions, Group Discussions |
Continuous Assessment Test, Semester End Examinations, Quiz, Solving Numerical Problems, Assignments, Class Presentations, Individual and group 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
