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Strategic Cost Management
The objective of this course is to -
- Apply relevant knowledge, skills and exercise professional judgement in selecting and applying strategic management accounting techniques in different business contexts
- Contribute to the planning, control and evaluation of the performance of an organisation and its strategic and operational development
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Course |
Learning outcome (at course level) |
Learning and teaching strategies |
Assessment Strategies |
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Paper Code |
Paper Title |
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ATG 424
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Strategic cost Management
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CO 109: Describe some of the techniques and processes that are available to assist managers in planning and controlling organizational activities; CO 110:Analyze the processes involved in identifying, measuring, analyzing, interpreting and communicating information to managers in pursuit of the organization’s goals; CO 111: Explain the role of cost information in organizations; CO 112: 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 113: Apply appropriate cost allocation techniques to a variety of costing variety of costing problems; CO 114: 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,
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Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Individual projects |
Introduction to Strategic Cost Management Concept of Strategic Cost Management; Components of SCM, Limitations of Traditional Cost Management ,Traditional vs. Strategic Cost Management
Cost Control and Cost Reduction–basics, process, methods and techniques of cost reduction programme.
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.
Transfer Pricing:Utility, methods: market based, Cost based and Negotiation based Transfer pricing, Transfer Pricing Decisions in different Circumstances.
Process Innovation and Business Process Re-engineering: Process innovation, Principles of BPR, Main stages, difference between BPR and PI.
Pareto Analysis:Usefulness and application
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.
Value chain analysis: Concept,value chain linkages; Internal linkages; Supplier linkages; Customer linkages; Role of value-chain in decision analysis.
Kaizen Costing: Meaning, Target costing v/s kaizen costing, Benchmarking, Types , pre- requisites and steps of benchmarking,
Pricing Strategies/ Decisions : Theory & Principles of Product Pricing, Pricing – New Product, Finished Products & Pricing of Services, Sensitivity Analysis in Pricing Decisions ,Pricing Decision under Special Circumstances , Pricing Strategies
1. Lal,Jawahar (2016). Strategic Cost Management.Himalaya Publishing House.
2. Hilton,RonaldW.,Maher, Michael W. &Selto, Frank A. (2004). Cost Management:Strategies for Business Decisions. McGraw Hill Irwin.
3. Shank, John K. &Govindarajan, Vijay.(2008). Strategic Cost Management.The Free Press.
1. Blocher, Edward J., Chen, Kung H., Cokins, Gary & Lin, Thomas W. (2006). Cost Management: A Strategic Emphasis. McGraw Hill Education (India) Ltd.
2. Eldenburg, Leslie G. & Wolcott, Susan K. (2010). Cost Management. John Wiley and Sons
3. Hansen, Don R. & Mowen, Maryanne M. (2005).Cost Management, Accounting and Control. Cengage Learning (India) Ltd.
