This course will enable the students to acquire the skills and knowledge necessary to strategically manage costs within organizations to enhance financial performance and competitiveness.
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Course |
Learning outcome (at course level) |
Learning and teaching strategies |
Assessment Strategies |
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Course Code |
Course title |
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25ATG424 |
Strategic Cost Management (Theory) |
CO109: Analyze the concepts of Strategic Cost Management, including its components, limitations of Traditional Cost Management, and the differences between Traditional and Strategic Cost Management CO110: Evaluate the basics, processes, methods, and techniques of Cost Control and Cost Reduction programs. CO111: Assess Total Quality Management (TQM) principles, including the Six C’s of TQM, its implementation, and criticisms CO112: Apply the concepts of Transfer Pricing, including utility, methods, and decisions in different circumstances.; CO113: Synthesize the concepts of Kaizen Costing, including its meaning, comparison with target costing, benchmarking, types, and steps, along with Pricing Strategies and Decisions.; CO114: Contribute effectively in course-specific interaction |
Approach in Teaching: Interactive Lectures, Discussion, Tutorials, Problem Solving Sessions & Presentations
Learning activities for the students: Self-learning assignments, Case Study Analysis, Class Presentations (Individual & Group)
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Continuous Assessment Test, Semester End Examinations, Quiz, Solving Numerical Problems, Assignments, Individual & Group 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. Strategic Cost Management : Lal, Jawahar (Himalaya Publishing House.)
2. Cost Management: Strategies For Business Decisions : Hilton,Ronaldw.,Maher, Michael W. &Selto, Frank A. (Mcgraw Hill Irwin.)
3. Strategic Cost Management :Shank, John K. &Govindarajan, Vijay.(The Free Press)
Suggested Readings:
1. Cost Management A Strategic Emphasis: Blocher , Stout, Cokins(By Mcgraw-Hill)
2. Strategic Cost Management And Performance Evaluation:Saxena V.K., (Sultan Chand & Sons)
3. Cost Management:A Strategic Perspective:Vaidya, (Macmillan Publishers India Limited)
e-Reources:
1. https://icmai.in/upload/Students/Syllabus-2012/Study_Material_New/Final-... [2]
2. https://book.akij.net/eBooks/2018/March/5aac97792398e/Cost%20Management%... [3]
3. https://www.srinivasaacademy.com/downloads/266/201_Paper-5Part-A.pdf [4]
4. https://www.pdfdrive.com/strategic-cost-management-d53968072.html [5]
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
Links:
[1] https://accountingtaxation.iisuniv.ac.in/courses/subjects/strategic-cost-management-2
[2] https://icmai.in/upload/Students/Syllabus-2012/Study_Material_New/Final-Paper15.pdf
[3] https://book.akij.net/eBooks/2018/March/5aac97792398e/Cost%20Management%20A%20Strategic%20Emphasis,%205th%20Edition-2-997.pdf
[4] https://www.srinivasaacademy.com/downloads/266/201_Paper-5Part-A.pdf
[5] https://www.pdfdrive.com/strategic-cost-management-d53968072.html
[6] https://accountingtaxation.iisuniv.ac.in/academic-year/2025-2026