Strategic Cost Management and Performance Evaluation

Paper Code: 
BCP-612
Credits: 
6
Contact Hours: 
90.00
Max. Marks: 
100.00
Objective: 

Course Objectives:

·         To apply various cost management techniques for planning and controlling performance in order to set, monitor and control strategic Objectives

·         To develop skills of analysis, synthesis and evaluation in cost management to address challenges and issues this might affect or influence the management of performance within organizations.

 

Course Outcomes (COs): 

 

Course

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

BCP-612

Strategic Cost Management and Performance Evaluation
  • CO 186 To have an overview of Modern Business Environment and introduction to Strategic Cost Management
  • CO 187 To apply various cost management techniques for planning and controlling performance in order to set, monitor and control strategic Course Objectives: s.
  • CO 188 To develop skills of analysis, synthesis and evaluation in cost management to address challenges and issues this might affect or influence the management of performance within organizations.
  • CO 189 To understand in detail Lean System and Innovation, Performance Measurement and Evaluation, Divisional Transfer Pricing, Budgetary Control and Standard Costing
  • CO 190 To have an understanding about the applications of the Quantitative Techniques for Decision Making

Approach in teaching:

Interactive Lectures, Discussion, Tutorials, Reading assignments

 

Learning activities for the students:

Self learning assignments, Effective questions, Simulation, Seminar presentation

 

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

 

18.00
Unit I: 
-
  • Introduction to Strategic Cost Management: Concept of Strategic Cost Management, Limitations of Traditional Cost Management, Traditional vs. Strategic Cost Management
  • Modern Business Environment: Introduction/ Characteristics, Cost of Quality, TQM, Business Excellence Model, Throughput Accounting and Theory of Constraints, Supply Chain Management (SCM), Gain Sharing Arrangements, Outsourcing

 

18.00
Unit II: 
-
  • Lean System and Innovation: Introduction to Lean System a) Just-in-Time (JIT) b) Kaizen Costing c) 5 Ss d) Total Productive Maintenance (TPM) e) Cellular Manufacturing/ One-Piece Flow Production Systems f) Six Sigma (SS), Introduction to Process Innovation and Business Process Re-engineering (BPR)
  • Cost Management : Costing, Value Analysis/ Value Engineering, Pareto Analysis, Life Cycle Costing, Environmental Management Accounting
  • Cost Management for Specific Sectors: Agricultural Sector, Information Technology Sector, Power Sector

 

18.00
Unit III: 
-
  • Decision Making: Decision Making using CVP Analysis, Decision Making using Relevant Cost Concepts, Decision Making using Activity Based Costing, Ethical and Non-Financial Considerations Relevant to Decision Making
  • 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

 

18.00
Unit IV: 
-
  • Performance Measurement and Evaluation: Responsibility Accounting, Linking Critical Success Factors (CSFs) to Key Performance Indicators (KPIs) and Corporate Strategy; Performance Measurement Models‒The Balanced Scorecard, The Performance Pyramid, The Performance Prism and The Building Block Model; Divisional Performance Measures; Benchmarking Schemes, Performance Measurement in the Not-for-Profit Sector, Preparation of Performance Reports
  • Divisional Transfer Pricing: Meaning, Purpose and Principles of Transfer Pricing, Methods of Transfer Pricing, The Behavioural Consequences arising from Divisional Structures, International Transfer Pricing
  • Strategic Analysis of Operating Income: Operating Profit Analysis, Advanced Activity Based Costing, Activity Based Management (ABM), Activity Based Budgeting (ABB)

 

18.00
Unit V: 
-
  • Budgetary Control: The Concept of Feedback and Feed Forward Control, Behavioural Aspects of Budgeting, Behavioural Aspects of Budgetary Control, Beyond Budgeting
  • Standard Costing: Analysis of Advanced Variances, Integration of Standard Costing with Marginal Cost Accounting, Reconciliation of Profit, Variance Investigation Techniques, Interpretation of Variances, Possible Interdependence Between Variances and Reporting, Behavioural Aspects of Standard Costing, Limitation of Standard Costing.
  • Case Study (covering Course Concepts)

 

References: 
  • Study Material issued by ICAI

 

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: 
2020-2021
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