JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD

Prerequisite

None

UNIT - I

Introduction and Overview of the Strategic Cost Management Process Cost concepts in decision-making; Relevant cost, Differential cost, Incremental cost and Opportunity cost. Objectives of a Costing System; Inventory valuation; Creation of a Database for operational control; Provision of data for Decision-Making.

UNIT - II

Project: meaning, Different types, why to manage, cost overruns centers, various stages of project execution: conception to commissioning. Project execution as conglomeration of technical and nontechnical activities. Detailed Engineering activities. Pre project execution main clearances and documents Project team: Role of each member. Importance Project site: Data required with significance. Project contracts. Types and contents. Project execution Project cost control. Bar charts and Network diagram. Project commissioning: mechanical and process

UNIT - III

Cost Behavior and Profit Planning Marginal Costing; Distinction between Marginal Costing and Absorption Costing; Break-even Analysis, Cost-Volume-Profit Analysis. Various decision-making problems. Standard Costing and Variance Analysis. Pricing strategies: Pareto Analysis. Target costing, Life Cycle Costing. Costing of service sector. Just-in-time approach, Material Requirement Planning, Enterprise Resource Planning, Total Quality Management and Theory of constraints.

UNIT - IV

Activity-Based Cost Management, Bench Marking; Balanced Score Card and Value-Chain Analysis. Budgetary Control; Flexible Budgets; Performance budgets; Zero-based budgets. Measurement of Divisional profitability pricing decisions including transfer pricing.

UNIT - V

Quantitative techniques for cost management, Linear Programming, PERT/CPM, Transportation problems, Assignment problems, Simulation, Learning Curve Theory.

TEXTBOOKS/ REFERENCES:

• 1. Cost Accounting A Managerial Emphasis, Prentice Hall of India, New Delhi
• 2. Charles T. Horngren and George Foster, Advanced Management Accounting
• 3. Robert S Kaplan Anthony A. Alkinson, Management & Cost Accounting
• 4. Ashish K. Bhattacharya, Principles & Practices of Cost Accounting A. H. Wheeler publisher
• 5. N.D. Vohra, Quantitative Techniques in Management, Tata McGraw Hill Book Co. Ltd. M. Tech – III Semester L T P C 3 0 0 3