TEACHING AND LEARNING PLAN (TLP)

Title of the subject Strategic Cost Management

Name of the faculty Prof. Vanita Patel
Name of the program / specialization if PGDM
any
Course Revision No 14
Academic Year & Trimester / Semester 2018-19
Trimester V
No of credit hours and sessions 15 hours- 1.5 credits
Faculty contact details 9821346451

Introduction: ‘Strategic Cost Management’ is the cost management technique that aims at reducing
costs while strengthening the competitive position of the business. It is a process of combining the
decision-making structure with the cost information, in order to reinforce the business strategy as a
whole for the long term profit maximization.

Learning Objectives of the subject:

 This subject introduces strategic cost management concepts with a strong focus on its
role of long term profit maximization.
 Study of this will enable students to, develop strategies that are financially feasible
and yield adequate financial returns.
 Decide the right tactical concept to meet strategic objectives for long term
competitive advantage.
 Implement controls to monitor the success of these strategies and meet strategic
objectives.

Learning Outcomes:
Students will be able to,
 Appreciate the important ‘Strategic Cost ‘management tools and techniques to make
long term strategic business decisions.
 Apply the ‘Responsibility Accounting’ concept for performance evaluation,
Using ‘Transfer Pricing ’technique for inter department/intercompany material
transfers to maintain overall profitability of the organization.
 Apply the ‘Activity based costing’ tool to avoid under/over costing of overheads and to
measure total cost accurately.
 Apply the importance of ‘Value chain’ in measurement of cost.
 Apply the concept of ‘Target costing’ in the competitive market to decide the selling
price.
 Apply the ‘Balance score card’ concept in the overall performance (financial and
nonfinancial) of an organization.

1
 Mapping of Learning Outcomes of the subject to the AOL goals

Leader Innovatio Critical and Communic Global Role of

ship n Analytical ation Perspective self in
Thinking organizat
ion and
society
LO 1 ✓
LO 2 ✓ ✓
LO 3 ✓ ✓
LO 4 ✓
LO 5 ✓ ✓ ✓
LO 6 ✓ ✓

Recommended Readings / Books / Articles:

1. Cost Accounting- A Managerial Emphasis- Charles Horngren,SrikantDatar,MadhavRajan -

14th /15th edition –Pearson Publication.
2. Cost Management- A Strategic Emphasis by Blocher, Chen Cokins& Lin. 3rd/4th editionTata
McGraw Hill Publication.
3. Strategic Cost management- The New Tool for competitive advantage- John Shank &
Vijay Govindrajan- Free Press
4. Advance Management Accounting- Robert Kaplan & Anthony Atkinson.- 3rd editionPrentice
Hall Publication

Additional Reading: Harvard Business Publishing

1. Competitive advantage- Michael Porter
2. Evolution of time driven Activity Based Costing- Robert Kaplan & David Norton.
3. Balance score card- Measures that drive performance-Robert Kaplan & David Norton.

Session Plan:

Details of Syllabus Delivery for ‘Strategic Cost Management‘

Pedagogy

Suggested pedagogical tools are : Text book

Sessi Topics to be Covered reading/Articles / Case studies
on
 Revise BCCL chapter 3,
Introduction to Strategic Cost  Reading : BCCL Chapter 1& 9/ HDR: Chapter 1
1 Management
 Case Study: Baldwin Bicycle Company-

2
 Students should read this case for this class from
the text book- Accounting –text and Cases by
Anthony, Hawkins & Merchant- Chapter 26,
Case-4.

Value Chain Analysis- Implications of  Reading BCCL Chapter 2

value chain in decision making and
2,3 long-term Cost management  Case Study: Northam Packaging Company- will
be distributed in the class.

Activity Based Costing-Concept of cost
4,5 & activity driver. Activity Based
Management
Product Life Cycle Costing, Target
6,7 Costing, Business Process Engineering-
Theory of constraints.
Objective Based Costing, Cost
Reduction and Strategy based
8,9 Responsibility Accounting System and
Transfer Pricing
Balance Score card
10
 Reading BCCL Chapter 5 &/HDR chapter 4&5
 Practical Illustrations.
 Case Study: HBP case: Dakota office Products
 Reading BCCL Chapter 10
 Practical Illustrations
 HBP Cases: Nissan Motor Company Ltd
 Reading BCCL Chapter 18/HDR - Chapter 18 &
19.
 Practical Illustrations
 HBP Case Study. Birch Paper Company
 Reading :BCCL Chapter 2, HDR chapter 20
 Reading article-Balance score card-Robert Kaplan
& David Norton.
 HBP case: Chemical bank

Evaluation Schedule
Evaluation Methodology % of marks assigned The AOL Goal that it will
measure
1. Objective type test 40% L 1,2,3,4,5,6
2. End Term Exam 60 % L 1,2,3,4,5,6

Approved By
TLP submitted Program Head Dean – Dean - Academics
by Specialization
Name of the Faculty Prof. Vanita
Patel

Signature

Date 15/10/2018