This Course aims to:
• Develop understanding of various costing systems in different strategic decision situations.
• Provide the details of contemporary issues in costing systems such as activity-based costing and pricing, target costing, etc.
• Provide a comprehensive view on management control covering control structure issues like profit centers/SBUs and control process issues like budgeting and performance evaluation.
The course has following modules:
Module - 1 : The Cost management process
Module - 2 : Cost removal – taking out costs
Module - 3 : Value Engineering
Module - 4 : DCF and Target Costing
Module - 5 : Manufacturing Cost Estimation
Module - 6 : Sensitivity and Risk Analysis
Module - 7 : Budgeting
Module - 8 : Budgetary Control Measures
Module - 9 : Role of Business Goals and Strategies in Budget
Module –10 : Zero Based Budgeting ( ZBB )
Module –11 : Awareness of Overheads and Other Costs
Module –12 : Activity Based Costing ( ABC )
Module -13 : Spend Analysis-Brief
Quiz, Test and Answers
Need for STRATEGIC COST MANAGEMENT
It is an updated form of cost analysis, in which the strategic elements are more clear and formal and improves the overall position of the company.
It is used to analyze cost information, and use it to develop various measures to achieve a sustainable competitive advantage.
It provides a better understanding of the overall cost structure in the quest of gaining a sustainable competitive advantage.
It uses cost information specifically to govern the strategic management process – formulation, communication, implementation and control.
It helps in identifying the cost relationship between value chain activities and its process of management to gain competitive advantage.
The strategic cost management must be implemented at the initial stages of production, so as to reduce heavy cost failure.
