Cost Analysis and Control

Paper Code: 
24DATG803
Credits: 
04
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

This course will enable the students to develop skills in analyzing costs and implementing effective control measures to optimize financial performance.

 

 

 

 

                                                                                   

 

 

Course Outcomes: 

 

Course

Learning outcome

         (at course level)

Learning and teaching strategies

Assessment Strategies 

Course Code

Course title

 

24DATG803 

 

Cost Analysis and Control

(Theory)

CO235:Demonstrate the understanding of theory of price and its implications, including pricing in recession and below marginal cost and Gain proficiency in utilizing the learning curve theory.

CO236:Analyze transfer pricing methods, decision-making in diverse circumstances, and apply cost reduction and value analysis techniques.

CO 237: Apply statistical and operations research techniques for cost control, including inventory models, decision-making under uncertainty, and variance investigation models.

CO 238: Gain insights into recent cost management developments, including TQM implementation, JIT prerequisites and impact, and life cycle costing strategies and benefits.

CO 239: Gain knowledge of process innovation, Business Process Re-engineering (BPR), target costing, and Pareto Analysis, and apply them for improved profitability and cost control.

CO240: Contribute effectively in course-specific interaction

Approach

in

teaching:

Interactive

Lectures,

Discussion,

Tutorials,

Problem solving sessions, Presentations

Learning

activities

for the

students:

Self-learning

assignments, Case Study analysis, Presentations, Group discussions

  

Continuous Assessment Test, Semester End Examinations, Quiz, Solving numerical problems, Assignments, Class Presentations, Individual and group projects.

 

 

12.00
Unit I: 
Pricing Decisions and Learning Curve theory

 

  • Theory of price, Pricing under different market structures
  • Pricing policy
  • Pricing methods: Cost based, Competition Based, Value Based
  • Pricing in period of recession, pricing below marginal cost
  • Strategic pricing of new products: skimming pricing, penetration pricing. 
  • Learning Curve Theory

 

 

12.00
Unit II: 
Transfer Pricing, Cost reduction and Value analysis
  • Utility
  • Methods: market based, Cost based and Negotiation based Transfer pricing 
  • Transfer Pricing Decisions in different Circumstances.
  • Cost reduction and Value analysis

 

 

12.00
Unit III: 
Statistical and OR application for Cost Control
  • Decision making under certainty - only Inventory model techniques
  • Decision making under uncertainty and risk
  • Models for Variance Investigation

 

12.00
Unit IV: 
Recent Developments in Cost Management
  • Total Quality Management(TQM)- Six C’s of TQM, Implementation of TQM, Criticism of TQM,
  • Just In Time(JIT): Essential Pre-requisites of JIT system, Impact, Performance measurement, Back-flushing in JIT system.
  • Life cycle costing: Product life cycle, life cycle characteristics, strategies, benefits, uses.

 

Unit IV:   Recent Developments in Cost Management:                                             (12 Hours)

  • Total Quality Management(TQM)- Six C’s of TQM, Implementation of TQM, Criticism of TQM,
  • Just In Time(JIT): Essential Pre-requisites of JIT system, Impact, Performance measurement, Back-flushing in JIT system.
  • Life cycle costing: Product life cycle, life cycle characteristics, strategies, benefits, uses.

 

12.00
Unit V: 
Process Innovation, Business Process Re-engineering, Target Costing and Pareto Analysis
  • Process innovation, Principles of BPR, Main stages, difference between BPR and PI
  • Target Costing-  Advantages, main features, components of target costing system, problems with target costing, impact on profitability, target costing control points, implementation of target costing system.
  • Pareto Analysis: Usefulness and application

Unit V: Process Innovation, Business Process Re-engineering, Target Costing and Pareto Analysis:                                                                                                                        (12 Hours)

  • Process innovation, Principles of BPR, Main stages, difference between BPR and PI
  • Target Costing-  Advantages, main features, components of target costing system, problems with target costing, impact on profitability, target costing control points, implementation of target costing system.
  • Pareto Analysis: Usefulness and application

Essential Readings: 
  • Jain, Khandelwal & Pareek, Cost Accounting Ajmera Book Company, Jaipur 
  • Agarwal, Jain, Sharma, Shah & Mangal, Cost Accounting   Ramesh Book Depot, Albright, S. C., Winston, W. L., & Zappe, C. (2019). Data Analysis and Decision Making (6th ed.). Cengage Learning.
  • Jawaharlal,  Cost Accounting  Tata Mcgraw Hill, New Delhi 

 

 

References: 

Suggested Readings:

  • Arora, M.N.,Cost Accounting Principles and Practice, Vikas Publication, New Delhi 
  • Kishore R.M.., Cost Accounting Taxmann’s New Delhi 
  • Nigam, B.M Lal,&  Jain, I.C. ,  Cost Accounting    PHI, New Delhi
  • Maheshwari, S.N,  Cost Accounting Mahavir Publication 
  • Madegowda. J. Cost Accounting  Himalaya Publishing House 

 

E- Content:

 

Reference Journals:

  • The Indian Journal of Commerce           
  • FIIB Business Review

 

Note    The candidate shall be permitted to use battery operated pocket calculator that should not

have more than 12 digits, 6 functions and 2 memories and should be noiseless and cordless

Academic Year: