programme

Strategic Cost Management

Home/ Strategic Cost Management
Course TypeCourse CodeNo. Of Credits
Discipline ElectiveSBP2MB5052

Semester and Year Offered: Monsoon Semester

Course Coordinator and Team: Kanwal Anil

Email of course coordinator: Kanwal[at]aud[dot]ac[dot]in

Pre-requisites: Nil

Aim The objective of this course is to provide the students with a frame work for analysis and design of internal accounting systems. It tries to explain how these systems are used for decision making and motivating people in the organisations. Strategic Cost Management is the development of cost management information to facilitate the principal management function, strategic management. Cost management information is a broad concept and includes information that the manager needs to effectively manage the firm or not-for profit organization and included both financial information about costs and revenues as well as relevance of non-financial information about productivity, quality, and other key success factors for the firm.

Course Outcomes:

  1. To understand strategy from the perspective of costing in an enterprise.
  2. To analyse and understand the relevance of non-financial information about productivity, quality, and other key success factors for the firm.
  3. To provide the students with a frame work for analysis and design of internal accounting systems and related strategies.
  4. It seeks to provide specialisation-level knowledge to financially motivated managers to be on the role of the management accounting in complex modern industrial organisations.

Brief description of modules/ Main modules:

Unit 1 Strategic Cost Management: Origin growth and modern perspectives.

.Unit 2 Performance Measures, strategy and Balance score card.

Unit 3 Investment centres and transfer pricing.

Unit 4 Different areas of Strategic cost management: Life cycle costing. Kaizen costing. Back flush costing. Cost accounting in a JIT environment. Customer profitability analysis. Benchmarking

Unit 5 Environmental cost management: Classifying environmental costs. Environmental cost strategies.

Assessment Details with weights:

  • Case Analysis/Assignments 10% (throughout trimester)
  • Mid semester 30% (4/5th Week)
  • End semester 20% (8th Week)
  • Quiz/Group Presentations 20% (throughout trimester)
  • Project 20%(throughout trimester)

Reading List

Recommended Text

  • 1. Kaplan R. S. & Anthony A. A., (1998) Advanced Management Accounting, 3rd ed. Pearson Education.

Additional Reference

  • Duncan, W. (2011) Cost and management accounting, Prentice Hall.
  • Hilton, R. W. and Platt, D.E (2013) Managerial Accounting: Creating value in a dynamic business environment, McGraw Hill, New York.
  • Horngren, C. T., Datar S. M., and Rajan M.V. (2014) Cost Accounting, 15th ed., Pearson Education.
  • Hongren, C. T., Sundem G. L., and Stratton W. O. (2012) Introduction to Management Accounting, 16th ed., Prentice Hall of India.