Complete Syllabus of Cost Management | ACC 686 | MBS 4th semester

Credits: 3 

Lecture Hours 48 

Course Objectives: 

This course aims to impart advanced knowledge of existing costing systems, their drawbacks and development of improved methods and techniques, so as to make costing systems, tools of strategic decision making. 

Teaching Methodology and Pedagogy: 

 Lecture
 Assignments
 Discussion & Presentation
 Project & case work
 Library & Internet 

Marking Scheme: 

 Internal 
- Assignment 

- Presentation
- Project work
- Case Studies
- Mid Term Exam
- Pre Board Exam 

 External
- Board Exam 

Course Details:

Unit 1: Introduction to Cost Management LH 3 
- Concept, importance and characteristics of cost management
- Strategic role of cost management
- Cost management and Strategic decision making
- Formulation of strategic action plans
- Evaluation of plans and outcomes: benefit cost analysis and benefit & cost variance 

Unit 2: Product Costing System: LH 3
- Concept and types of cost
- Cost reported in financial statement: service, retail and manufacturing company 

Unit 3: Activity Based Costing; Activity Based Budgeting (ABB) and Capacity Utilization LH 8
- Concept, advantages and limitations of activity based costing system, Procedures of absorption of overhead cost under ABC, Estimation of costs of new products using ABC, Cost and benefit of using ABC
- Concept, importance and process of activity based budgeting (ABB), ABB and traditional budgeting, Behavioral dimension of budgeting
- Meaning of capacity, capacity utilization, managing capacity and excess capacity, Measuring for capacity management, Activity Based Reporting of unused resources 

Unit 4: Target Costing and Kaizen Costing LH 6
- Concept, importance and process of Target Costing, Key principles of Target Costing, Implementation of Target Costing , Target Costing and ABC, Value engineering
- Concept and importance of Kaizen Costing, Kaizen standards, General Kaizen Costing and items specific for Kaizen Costing Similarities between Target costing and Kaizen Costing. 

Unit 5: Life Cycle Costing LH 5
Concept and importance of Life Cycle Costing, Product Life Cycle, Pricing products using the Product Life Cycle, Product Life Cycle and ABC, Benefits of Life Cycle Costing, Life Cycle Budgeting. 

Unit 6: Just in Time (JIT) Inventory Management LH 5
Concept and importance of Inventory management, Inventory related costs, Traditional approach to inventory management, Concept, objectives, importance and limitations of Just in Time JIT manufacturing, Implementing JIT manufacturing, JIT in non-manufacturing situations, Performance evaluation in traditional and JIT environment 

Unit 7: Theory of Constraints (TOC) LH 3
Concept and importance of TOC
Steps in TOC for improving performance Internal and external constraints
Accounting issues in TOC
TOC and ABC 

Unit 8: Total Quality Management (TQM) LH 6
Concept, features, importance and types of (TQM)
Traditional approach to quality Vs TQM
Critical success factors for TQM
Measuring and reporting quality costs
TQM and productivity
TQM in service organization 

Unit 9: Process Costing and Cost Allocation LH 9
Concept, importance and characteristics Process Costing System, Assignment of costs to product Concept, importance and characteristic of Joint Process Costing, Estimation of profit from Joint Product, Reason for allocating Joint Costs, Joint Costs allocation methods: Net Realizable Method and Physical Measures Method, Accounting for By-Product. 

Reference Books: 

Blocher E., David Stoot N. C. & Lokins O. G., Cost Management, A Strategic Emphasis Tata Mcgraw Hill Co. 

Hilton, R. W., Maher, M. W. & Selto, F. H. (2008), Cost Management, Strategies for Business Decisions, 4E, MC Graw Hill, Irwin 

Lal, J. (2015), Strategic Cost Management, 1 st E, Himalaya Publishing House