STRATEGIC COST MANAGEMENT AND CONTROL-Syllabus

External Marks: 70
Internal Marks: 30
STRATEGIC COST MANAGEMENT AND CONTROL Time: 3 hrs.
PAPER CODE: 2311/50911
COURSE OBJECTIVE:
This course aims to acquaint the students with concepts and various aspects of cost management from strategic perspective
Unit-I
Conceptual framework of SCM, environmental influences on cost management practices, role of SCM in strategic positioning; cost management tools - life cycle costing, target costing, kaizen costing, JIT & theory of constraints, BPR and bench marking
Unit-II
Nature of activity-based costing (ABC); benefits and limitations of ABC; limitation of volume -based costing system, indicates of ABC; activity hierarchies; cost drivers; designing an ABC system Activity-based management; operational and strategic application of ABC; customer profitability analysis,process value analysis, financial measures of activity efficiency; Nature of value-chain analysis; activity analysis and linkage analysis; application of linkage analysis in cost reduction and value addition
Unit-III
Functional-based planning and control; budgeting –nature, administration and effectiveness; budgeting cycle; activity-based budgeting; Kaizen approach; ZBB; performance budgeting; human aspects of budgeting; responsibility centers and financial control – nature and role of responsibility centres; accounting and evaluation of responsibility centers, measuring the performance of investment centre – ROI, RI, EVA; transfer pricing and its applications
Unit-IV
Strategic-based performance measurement system: balanced score card – prospectives and limitations; establishing objectives and performance measures in different perspectives of balance score card; productivity measurement and control; productivity efficiency; partial and total productivity measurement; measuring changes in activity and process efficiency; quality cost management and reporting system
Suggested Readings:
1. Drury, Colin, Management Accounting and Control, Thomson Learning
2. Horngren, Datar Foster, Cost Accounting, Pearson Education
3. Hansen and Mowen, Cost Management, Thomson Learning
4. Kaplan, Atkinson and Young, Management Accounting, Pearson Education
5. Kaplan, Atkinson, Advanced Management Accounting, Pearson Learning
6. Anthony, Robert N., and Govindrajan, Vijay, Management Control System, McGraw Hill
Note:
1. One case study be discussed – per unit – in the class.
2. Instruction for External Examiner: The question paper will have two sections. Section ‘A’
shall comprise 8 questions ( 2 questions from each unit). The students will be required to
attempt four questions (one question from each unit). Section ‘B’ will contain one CASE
STUDY which will be compulsory. All the five questions will carry equal marks.