International

Strategic Cost Management (E)

Niveau der Lehrveranstaltung/des Moduls laut Lehrplan

First Cycle

Lernergebnisse der Lehrveranstaltung/des Moduls

At the end of the subject students shall be able to:
• Understand the principles and concepts of strategic cost management.
• Calculate costs and analyze decisions that involve cost data and financial data, and interpret them in a strategic decision-making context.
• Visualize the impact of cost information on decision making such as pricing / product mix/capacity constraint/outsourcing etc. to be competitive in the industry.
• Use of cost data for strategic positioning.
• Understand concepts of Activity Based Costing and develop a deep insight on how to apply to their responsibility area. Identify the non-value added activities. Apply the concept of Activity Based Costing in making strategic decision.
• Gain from contemporary strategic cost management techniques including ‘life cycle costing’ and ‘Target Costing’.

Voraussetzungen laut Lehrplan

Elementary knowledge of accounting

Lehrinhalte

Sessions 1-2
Strategic Cost Management Framework
• Introduction to cost management
• An overview (Nature, objectives, scope and significance).
• Scope of management accounting, financial accounting and cost accounting.
• Scope of management accounting in organizational decision making process

Readings:
• Handouts to be provided by the instructor


Sessions 3-4
• Cost concepts (Basic terminology)
• Direct and indirect cost
• Cost object
• Fixed, variable, semi variable, semi fixed cost
• Segragation of fixed and variable cost from semi variable costs
• Opportunity cost
• Sunk cost
• Avoidable and un avaoidable costs
• Controllable and non- controllable cost
• Use of cost types in strategic and operational decision making process

Readings:
• Handouts to be provided by the instructor


Session 5
Use of non-financial information and qualitative information in business decision making
Readings:
• Class discussions from the Annual Reports of Companies


Sessions 6-7
• Overhead Allocation And Apportionment using traditional cost system
• Homogenous Plant rates and Department rates
Over and under absorption of overheads

Readings:
• Handouts to be provided by the instructor
• Numerical exercises
• Case study discussion


Sessions 8-9-10
Introduction to Activity Based Management (ABM);
Activity Based Costing (ABC)

Readings:
• Handouts to be provided by the instructor
• Numerical exercises
• Case study discussion



Sessions 11-12
Customer Profitability Analysis (CPA)
Concept of customer profitability analysis
Use the concept of Activity Based Costing analyse for CPA

Readings:
• Case study discussion


Sessions 13-14
Group work by the students on case studies by the students and presentations by them.

Instructor will evaluate and give feedback

Quiz 1


Sessions 15-16-17
• Absorption and Variable costing:
• Cost-volume-profit analysis: break-even point including multiple product breakeven point
• Margin of safety
• Profit planning for earning a target income
• Use of Cost-volume-profit analysis for competitive analysis


Readings
• Handouts to be provided by the instructor
• Numerical exercises
• Case study discussion


Sessions 18-19-20
Relevant cost and irrelevant cost for decision making (including sunk cost, opportunity cost, incremental cost, differential cost, marginal cost)
• Pricing and product mix including limiting factor
• Make or buy decisions
• Special order costing
• Export order costing
• Other decision making
• Use of relevant cost analysis in strategic product positioning


Readings
• Handouts to be provided by the instructor
• Numerical exercises
• Case study discussion


Sessions 21-22-23
Budgetary control: Nature, Uses and advantages of budgets.
Choice of forecasting tools and assumptions in the budgeting process.
• Functional and Master budgets.
• Fixed and Flexible budgets,Cash Budget
• How budgetary control can make us ‘cost leader‘

Readings
• Handouts to be provided by the instructor
• Numerical exercises


Sessions 24-25
Standard Costing: Meaning and significance.
Meaning and relevance of Variance Analysis
Determination of standard costs
Material, labour, overhead and sales variances

Readings
• Handouts to be provided by the instructor
• Numerical exercises


Sessions 26-27
Introduction to Target costing and Life Cycle Costing
Readings
• Handouts to be provided by the instructor


Sessions 28-29-30
Group work by the students on case studies by the students and presentations by them.

Instructor will evaluate and give feedback

Quiz 2

empfohlene Fachliteratur

Recommended Reading

Colin Drury,“ Management & Cost Accounting“, Thomson Learning Publication, tenth edition
Required Reading

1. Handouts provided by the instructor
2. Case Studies provided from time to time

Bewertungsmethoden und -kriterien

1. Quizzes (2)
2. Case presentation

Unterrichtssprache

Englisch

Anzahl der zugewiesenen ECTS-Credits

3

eLearning Anteil in Prozent

0

Semesterwochenstunden (SWS)

2

geplante Lehr- und Lernmethoden

The Content of the course will be a link between cost management with strategy.
These days, there is a growing pressure on companies to manage cost due to increase in global competition. Companies are forced to give greater value to the customers at the same cost or give same value at a lower cost. Product quality cannot be compromised. Market is competitive and so prices of products or services cannot increase. It is not a wise decision to cut cost which will give a short run benefit but it is a good strategy to manage cost by first knowing the correct cost and then to manage it by cost management techniques like activity based management, target costing, life cycle costing etc.

The course will be delivered through a blend of lectures, exercises, case study discussions, assignments and students’ presentations.
The success of the course is a joint responsibility of the instructor and the students and hence it is important that you should regularly attend classes and actively participate.
In addition to the prescribed reading materials, additional readings and cases may be suggested/distributed in the class from time to time.
Keeping a track of related corporate developments through business journals/newspapers is essential.

Semester/Trimester, in dem die Lehrveranstaltung/das Modul angeboten wird

2

Name des/der Vortragenden

Dr. Barnali Chaklader

Kennzahl der Lehrveranstaltungen/des Moduls

IP_BUS136

Art der Lehrveranstaltung/des Moduls

Integrierte Lehrveranstaltung

Art der Lehrveranstaltung

Pflichtfach

Praktikum/Praktika

-

News der FH Kufstein

Workshop Unternehmen im Wandel: Zukunftsfit mit smarten und grünen Lösungen

Am 23. Mai 2024 fand im Raiffeisen Haus Oberndorf ein Workshop statt. Unternehmen aus Kitzbühel und Kufstein lernten über Digitalisierung und Nachhaltigkeit, mit dem Fokus auf smarte und grüne Lösungen. Die Veranstaltung bot eine Plattform für den Austausch innovativer Ideen.

Mehr erfahren
Last Call: Jetzt noch Studienplatz für Herbst sichern!

Ausgewählte Bachelor- und Masterstudiengänge der FH Kufstein Tirol bieten noch einen verlängerten Anmeldeschluss für den Studienstart im Herbst an. Onlinebewerbungen sind noch bis Anfang September möglich. Informieren Sie sich jetzt und starten Sie im Oktober Ihr Studium im Herzen der Alpen.

Mehr erfahren
How to Make Money Online

Nadine Fraiss, Gründerin und CEO von Lilox, gab Ende Mai den Studierenden des Studiengangs International Business Studies der FH Kufstein Tirol wertvolle Einblicke in die Lead Generation im digitalen Marketing. Zu dem mehrstufigen Akquiseprozess gehören Vertrauen aufbauen, die Zielgruppe festlegen und Alleinstellungsmerkmale definieren.

Mehr erfahren