Important Topics of Strategic Cost Management and Performance Evaluation


Strategic Cost Management and Performance Evaluation
Important topics
Here the topics set on priority Basis
·         Decision making, CVP Analysis, Pricing decisions ( 25 to 30 marks)
·         Transfer Pricing ( 10 marks)
·         Standard costing ( 8 marks)
·         Budget ( 8 marks)
·         Transportation, Assignment ( 10 marks)
·         CPA & PERT ( 10 marks)
·         Linear Programming ( 8 marks)

Sub Part—I: Strategic Cost Management

1 Introduction to Strategic Cost Management
                       i.        Concept of Strategic Cost Management
                      ii.        Limitations of Traditional Cost Management
                     iii.        Traditional vs. Strategic Cost Management

2. Modern Business Environment

                     i.        lntroduction/ Characteristics of the Modern Business Environment
                    ii.        Cost of Quality, Total Quality Management, Business Excellence Model
                   iii.        Throughput Accounting and Theory of Constraints
                  iv.        Supply Chain Management (SCM)
                   v.        Gain Sharing Arrangements
                  vi.        Outsourcing

3. Lean System and Innovation

(i)           Introduction to Lean System
a)   Just-in-Time (JIT)
b)   Kaizen Costing
c)   5 Ss
d)   Total Productive Maintenance (TPM)
e)   Cellular Manufacturing! One-Piece Flow Production Systems
f)    Six Sigma (SS)
(ii)          Introduction to Process Innovation and Business Process Re-engineering (BPR) &

4.      Cost Management Techniques
                             i.                Cost Control/ Waste Control. Cost Reduction
                            ii.                Target Costing
                           iii.                Value Analysis) Value Engineering
                          iv.                Pareto Analysis
                           v.                Life Cycle Costing
                          vi.                Environ mental Management Accounting

5.      Cost Management for Specific Sectors
                       i.        Agricultural Sector
                      ii.        Information Technology Sector
                     iii.        Power Sector

Sub Part—Il: Strategic Decision Making

1 Decision Making
           i.        Decision Making using CVP Analysis
a.   Decision Making using Relevant Cost Concepts
b.   Decision Making using Activity Based Costing
c.   Ethical and Non-Financial Considerations Relevant to Decision Making
2.      Pricing Strategies Decisions
     i.        Theory & Principles of Product Pricing
a.   Pricing — New Product, Finished Products & Pricing of Services
b.   Sensitivity Analysis in Pricing Decisions
c.   Pricing Decision under Special Circumstances
d.   Pricing Strategies

Section 11(35 Marks to 40 Marks)

Performance Evaluation and Control

Sub Part—I: Performance Evaluation and Reporting
1.      Performance Measurement and Evaluation

(i)           Responsibility Accounting
(ii)         Linking Critical Success Factors (CSFs) to Key Performance Indicators (KPls) and Corporate Strategy; Performance Measurement Models—The Balanced Scorecard, The Performance Pyramid. The Performance Pnsm, The Building Block Model; Divisional Performance Measures, Benchmarking Schemes
(iii)       Performance Measurement in the Not-for-Profit Sector
(iv)       Preparation of Performance Reports

2.      Divisional Transfer Pricing

(i)           Meaning, Purpose and Principles of Transfer Pricing
(ii)          Methods of Transfer Pricing
(iii)        International Transfer Pricing

3.      Strategic Analysis of Operating Income
                   i.        Operating Profit Analysis
                  ii.        Advanced Activity Based Costing, Activity Based Management (ABM), Activity Based Budgeting (ABB)

Sub Part—li: Managerial Control

1.      Budgetary Control

     i.        The Concept of Feedback and Feed Forward Control
    ii.        Behavioural Aspects of Budgeting — Imposed Style, Participative Budget
   iii.        Behavioural Aspects of Budgetary Control
  iv.        Beyond Budgeting

2.      Standard Costing

(i)           Analysis of Advanced Variances
(ii)          Integration of Standard Costing with Marginal Cost Accounting
(iii)        Reconciliation of Profit
(iv)        Variance Investigation Techniques, Interpretation of Vanances. Possible Interdependence Between Variances and Reporting
(v)         Behavioural Aspects of Standard Costing. Limitation of Standard Costing (including its use in the contemporary business environment)

Section III (20 Marks to 30 Marks)
Case Study.
1 Case Study
(i) Case Study (covering Course Concepts)



Comments

Post a Comment

Popular posts from this blog

Facing Your Fear and Moving Forward

Image
Every student has to face the problem and failure in their life. Failures and problems are only a temporary setback on a bigger, more significant course. How big the failure or problem is doesn’t matter but the matter is how you react to and learn from that failure. Some things that every student should learn from their life. ALWAYS WORK ON YOUR DREAMS    It is good to dream, but until the hard work is done to achieve it, dreams are useless. If you want to fulfill your dream you will have to work hard.  Just because life doesn’t seem fair, it doesn’t mean you quit. If, you have the dream of becoming a CA then worked on it. LEARN FROM YOUR MISTAKES We always make many mistakes in our life. But the most important thing is that what you have learned from it. you can Reframe your mistake as an opportunity to learn and develop and try to never repeat that same mistake. KEEP YOUR INTEREST AND MOTIVATED Interests play an important role ...
Read more

How to Prepare for CA Foundation Exam 2019 - Some Tips That Will Ensure The Success Is Yours!

Candidates usually get stuck at the point when they hardly have a month left for preparation. They impatiently look for the tips that can get them best of the results. Guys! There is no tip in the world that can replace hard work. You can only concise your syllabus. Break it down to studying only the most important topics and practicing them more. But it would be best if you start preparing at least 6 months before any exam. Still, if you don’t have much time left, you can divide you CA Foundation subjects using the following points. Time to devote for each subject when only 1 month is left:- §   Business Mathematics and Logical Reasoning & Statistics : 10 days §   Business Laws and Business Correspondence and Reporting : 6–7 days §   Business Economics and Business and Commercial Knowledge : not more than 6 days §   Principles and Practice of Accounting : 6–7 days The weightage that each topic carries should enable you to identify the detail ...
Read more

How to motivate yourself when study plan doesn't work.

Image
  How did you motivate yourself during your CA study leave when you have bad days and your study plan doesn't work out? Take a pause for a moment and just stop all your negative thoughts in your mind. And think and think deeply that what is the thing that you want the most. Ask yourself these questions Will this time ever come again if it is lost? If just thinking all the day and not doing anything gives you desired results? Then you will definitely get the answer from you mind. All these days which you are thinking as bad days is the opportunity that will never come again. If the plan you made doesn't work then it is upto you how you will make this plan working. Nobody will motivate you for longer time, it is the fire inside you that will motivate you everyday for your goal. If you don't feel the fire inside you then you need to find a reason that why you want that thing it will work as a fuel to the fire. You know that if this time goes then you will regret it later very ...
Read more