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STRATEGIC COST MANAGMENT [1]

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

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies

  
 

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,

 

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

  

 

18.00
Unit I: 
Unit I
  • 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.
 

 

18.00
Unit II: 
Unit II

• 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.

18.00
Unit III: 
Unit III
  • 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
 

 

18.00
Unit IV: 
Unit IV

• 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.

18.00
Unit V: 
Unit V

·         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 

Essential Readings: 

• Strategic Cost Management : Lal, Jawahar (Himalaya Publishing House.)
• Cost Management: Strategies for Business Decisions : Hilton,RonaldW.,Maher, Michael W. & Selto, Frank A. (McGraw Hill Irwin.)
• Strategic Cost Management :Shank, John K. &Govindarajan, Vijay.(The Free Press)

References: 

SUGGESTED READINGS:

e-RESOURCES:

JOURNALS:

  • Business Perspectives and Research
  • IUP Journal of Accounting Research
  • Jindal Journal of Business Research
  • Nirma University Journal of Business & Management Studies
  • Oorja
  • The Chartered Accountant
  • The Indian Journal of Commerce

 

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: 
2022-2023 [10]

Follow Accounting and Taxation on:

IIS (Deemed to be University)

Gurukul Marg, SFS, Mansarovar, Jaipur 302020, (Raj.) India Phone:- +91-141-2400160-61, 2397906-07, Fax: 2395494, 2781158

Source URL: https://accountingtaxation.iisuniv.ac.in/courses/subjects/strategic-cost-managment

Links:
[1] https://accountingtaxation.iisuniv.ac.in/courses/subjects/strategic-cost-managment
[2] https://www.google.co.in/search?hl=en&gbpv=1&dq=Strategic+Cost+Management.PDF&printsec=frontcover&q=inauthor:%22Saxena+V.K.%22&tbm=bks&sa=X&ved=2ahUKEwiaxMrQkuP2AhWhRWwGHe5aDlkQmxMoAHoECBEQAg
[3] https://www.google.co.in/search?hl=en&gbpv=1&dq=Strategic+Cost+Management.PDF&printsec=frontcover&q=inpublisher:%22Sultan+Chand+%26+Sons%22&tbm=bks&sa=X&ved=2ahUKEwiaxMrQkuP2AhWhRWwGHe5aDlkQmxMoAHoECA0QAg
[4] https://www.google.co.in/search?hl=en&q=inauthor:%22Vaidya%22&tbm=bks
[5] https://www.google.co.in/search?hl=en&gbpv=1&dq=Strategic+Cost+Management.PDF&printsec=frontcover&q=inpublisher:%22Macmillan+Publishers+India+Limited%22&tbm=bks&sa=X&ved=2ahUKEwjFjtHzkuP2AhXWR2wGHRWADlgQmxMoAHoECBkQAg
[6] https://icmai.in/upload/Students/Syllabus-2012/Study_Material_New/Final-Paper15.pdf
[7] https://book.akij.net/eBooks/2018/March/5aac97792398e/Cost%20Management%20A%20Strategic%20Emphasis,%205th%20Edition-2-997.pdf
[8] https://www.srinivasaacademy.com/downloads/266/201_Paper-5Part-A.pdf
[9] https://www.pdfdrive.com/strategic-cost-management-d53968072.html
[10] https://accountingtaxation.iisuniv.ac.in/academic-year/2022-2023