Course Name: STRATEGIC COST MANAGEMENT Course Code: 17JBS208

Number of credits: 4 Number of Hours: 40

Module 1: Costing methods: 10 hours

Learning Outcomes: Explain the cost concepts and costing methods & techniques
Cost, types of costs, elements of cost, cost sheet, tenders and quotations, job costing,
overheads, allocation, apportionment and absorption, absorption costing, Process costing, joint
and by-products and standard costing.

Module 2: Activity Based Management: 5 Hours

Learning Outcomes: Appreciate the role of activity based management in decision making
ABM – Activity Based Management, activity-based management in identifying cost
drivers/activities, activity-based cost hierarchy, ABM in the analysis of overhead, Activity Based
Costing, pricing and budgeting using ABM, Pareto analysis, customer profitability analysis,
customer cost analysis

Module 3: CVP Analysis: 7.5 Hours

Learning Outcomes: Develop the skill of applying cost volume profit analysis in profit planning
Concept of CVP, break even chart, computation of break even point, Application of CVP analysis
– relevant costs, make or buy decision, shut down or continue, product sales pricing and mix,
limiting factors, pricing decisions and pricing strategies.

Module 4: Budgeting and Budgetary control: 7.5 Hours

Learning Outcomes: Able to apply budgeting as a tool of cost management & operational
planning
Advanced discussions on budgeting and budgetary control, budget padding, kaizen budgeting,
ZBB, rolling budgets, flexible budgets and preparation of master budgets.

Module 5: Performance Measurement: 5 Hours

Learning Outcomes: Construct performance measurement framework
Uniform Costing and Inter firm comparison – Industry specific ratios, evaluating business
verticals across value chain, benchmarking, BPR, Process Innovation, ISO 9000 & ISO 14000,
Performance measurement – CSFs, KRAs, KPIs, Balanced Score Card*

Module 6: Emerging trends in management accounting: 5 Hours

Learning Outcomes: Explore the emerging trends in management accounting
Developments in the business environment, manufacturing resources planning, (MRP),
automated manufacturing, synchronous manufacturing and back flush systems, total quality
management, JIT, takt time, TOC, manufacturing cycle efficiency, value engineering, value
analysis, resource allocation and resource levelling, Gantt charts, Throughput accounting, Life
cycle costing, Target costing.

(* These topics are categorized as ‘Self-learning’ topics and are subjected to testing)
Basic Text:
Charles T. Horngren, Srikant M. Datar, Madhav. V. Rajan (recent edition). Cost Accounting: A
Managerial Emphasis. India, Pearson.

Reference Books:
Edward Blocher, David Stout, Gary Cokins (recent edition). Cost Management: A Strategic
Emphasis. Delhi, McGraw-Hill Higher Education

Other reading materials:

CIMA study materials of strategy level, recent edition.

Evaluation Pattern:

Continuous Midterm End term

Attendance Total
Evaluation Examination Examination
30% 15% 50% 5% 100%