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Commerce thrust
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Available courses
Semester : II
Course Type : Core IV
Title of the Course : Strategic Cost Management
Course Code : 23PGIICCom4
Course Objectives
Enable the learners to
1. analyse the aspects of strategic and quality control management
2. analyse and select cost control techniques
3. apply activity-based costing for decision making
4. utilise transfer pricing methods in cost determination
5. apply cost management techniques in various sectors.
Unit I- Introduction to Strategic Cost Management (18 Hrs)
Introduction to Strategic Cost Management (SCM) – Need for SCM – Differences between SCM and Traditional Cost Management - Value Chain Analysis: Meaning and steps - Quality Cost Management: Meaning of Quality and Quality Management – Cost of Quality –Indian Cost Accounting Standard 21 on Quality Control - Introduction to Lean System – Benefits of Lean System – Just in Time (JIT) – Kaizen Costing.
Unit II- Cost Control and Reduction (18 Hrs)
Cost Management Techniques: Cost Control: Meaning and Prerequisites - Cost Reduction: Meaning and Scope – Differences between Cost control and cost reduction - Pareto Analysis: Meaning, importance and applications - Target Costing: Meaning, steps and Principles – Life Cycle Costing: Meaning, Strategies for each stage of product life cycle, Benefits – Learning Curve: Meaning, Learning curve ratio and applications.
Unit III- Activity Based Cost Management (18 Hrs)
Activity Based Cost Management: Concept, Purpose, Stages, Benefits, Relevance in Decision making and its Application in Budgeting – Practical problems.
Unit IV- Transfer Pricing (18 Hrs)
Transfer Pricing: Meaning, Benefits, Methods: Pricing based on cost, Market price on transfer price, Negotiated pricing and Pricing based on opportunity costs – Practical Problems.
Unit V- Cost Management in Agriculture and IT sector (18 Hrs)
Agriculture Sector: Features, Cost Structure, Cost Management, Tools to measure the performance, Minimum Support Price and International Perspective –Information Technology Sector: Features, Cost Structure, Cost Management and International Perspective.
THEORY 20% & PROBLEMS 80%
Text Books
1. Bandgar P. K., 2017. Strategic Cost Management, 1st ed. Himalaya Publishing House
Pvt. Ltd., Mumbai.
2. Ravi M Kishore 2018. Strategic Cost Management, 5th ed. Taxmann Publications Pvt.
Ltd., New Delhi.
3. Sexena V. K. 2020, Strategic Cost Management and Performance Evaluation, 1st ed.
Sultan Chand & Sons, New Delhi.
Reference Books
1. Arora M. N., 2021, A Text Book of Cost and Management Accounting, 11th ed. Vikas
Publishing House Pvt. Ltd., New Delhi
2. Jawahar Lal, 2015, Strategic Cost Management, 1st ed. Himalaya Publishing House Pvt. Ltd.,
Mumbai.
3. John K Shank and Vijay Govindarajan 2008, Strategic Cost Management, Simon & Schuster
Latest ed. UK.
Webliography
1. https://www.accountingtools.com/articles/strategic-cost-management.html#:~:text=
Strategic%20cost%20management%20is%20the,it%20or%20have%20no%20impact.
2. https://ca-final.in/wp-content/uploads/2018/09/Chapter-4-Cost-Management-Techniques.pdf
3. https://resource.cdn.icai.org/66530bos53753-cp5.pdf
Course Outcomes (COs)
At the end of the course, the student can be able to
|
COs |
CO Statements |
Knowledge Level |
|
1 |
Explain Strategic Cost Management and QC |
K1,K2 |
|
2 |
Choose the appropriate technique for cost control |
K1,K2,K3 |
|
3 |
Make use of Activity Based Costing in practice |
K1,K2,K3 |
|
4 |
Choose Transfer Pricing methods to solve problems |
K1,K2,K3 |
|
5 |
Construct cost structure for Agriculture and IT sector |
K1,K2,K3 |
K1- Remember; K2 – Understand; K3 – Apply;