Scribd
Upload
65 views

SCM Course Outline

Strategic Cost Management

Uploaded by

Abdul Rahim
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PDF, TXT or read online on Scribd
65 views

SCM Course Outline

Strategic Cost Management

Uploaded by

Abdul Rahim
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

Strategic Cost Management Course Outline

Instructor: A Rahim E-Mail: [email protected] Course Objectives


This course is designed to introduce basic cost concepts, techniques and tools of cost management illustrating their use in business and strategic decisions. In particular, the course will focus on the following topics: Understanding of cost, price and links to strategic decision making; Types of cost, their behaviour and cost drivers; Preparation of budgets, total cost sheet and overhead absorption statements; Techniques including CVP analysis, process costing, job costing and standard costing (variance analysis); Activity Based Costing, Target Costing and Responsibility Accounting; Introduction to cost reduction, quality, performance management and control;

Pedagogy
The course will be delivered through lectures, class exercises and case studies in group work. Emphasis will be given on practical application of conceptual issues.

Examination and Grading


Component 3 Quizzes Group work Mid-Term Examination End-Term Examination Max. Duration 20 minutes each 2 hours 3 hours Weight 15% 20% 25% 40%

Suggested Text Books


1. Cost Accounting: A Managerial Emphasis, by Horngren, Datar and Foster (P Ed) basic textbook 2. Other textbooks on cost and management accounting Ex. Saxena Vashisht, Khan & Jain for problems and practice

Course Outline (Duration of each session: 1 hour)


Session Nos. 13 Topics Introduction to Cost management, role and links to strategy Relevance of cost management in different types of organisations Value chain Basic Tools used in management Various types of cost, their nature and behaviour Preparation of Total Cost Sheet Overhead costs and their behaviour Links to pricing decisions Calculation of Overhead absorption rates Under-absorption and Overabsorption Cost Volume Profit Analysis Break Even Point Estimation Use of CVP in decision making Multiple products and cases Handout/Exercis e Exercises on nature of costs Cases/Assignments Group Assignment 1. Walmart 2. Low cost airlines (LCA) 3. Value chain for iPhone 4. In action case Exercises for manufacturing and service sector Exercises Group Assignment Is it possible to have a cheaper car than the TATA Nano? Group assignment Case studies

45

68

9 13

Exercises

Group Assignment Excel template Calculation of BEP sensitivity analysis. Case studies for with

14 17

Budgeting including master Budget & departmental budgets Flexible budgets Budget planning and control Special cases: Job Costing, Process Costing, Joint Product etc. Activity Based Costing Target Costing Standard Costing and Variance Analysis Differentiating variances into causal constituents Control and reporting Responsibility Accounting concept of cost, profit and investment centres; Concepts of quality, strategy and performance management Moderns techniques of cost management: JIT, Supply Chain Management etc. Review and Wrap up

Exercises

Group Assignment Preparation of budgets

18 21

Exercises

Group assignments Preparation of cost exercises

22 24 25 27

Exercises Exercises

Group Assignment Cost by traditional and ABC Group assignment Excel template for standard cost analysis

28 31

Exercises

Group Assignment Case studies

32 34

Handouts

35 - 36

You might also like