goals, and strategic key variables in management control systems. Management by objectives.Management Control - Operational Control – Task Control. Concept of cost centers, profit centers andinvestment centers. sources for cost information, Cost units- classification of costs- cost analysis formanagement decision making.
Cost elements for product costing- - accounting for factory overheads- principlesof allocation and absorption – determining product costs. Mechanics of ascertaining product costs under joborder costing and process costing (Does not include Equivalent production, Byproducts). Theoretical conceptsof Activity Based Costing (ABC), Simple problems on ABC analysis.
profit (CVP) Relationship: Profit planning- behavior of expenses in relation to volume- CVPmodel- sensitivity analysis of CVP Model for changes in underlying parameters- assumptions of the CVPModel- Utility of the Model in Management Decision Making.
Concept of variable (Marginal) costing. Comparison between variable costing, - advantage ofvariable costing. Decisions involving alternative choices: cost analysis for decision making like discontinuing aproduct, accepting a special order, make or buy, Sell or Process further, Product Mix
objectives of pricing policies- marginal analysis and pricing – full cost pricing-ROI pricing –contribution approach to pricing – concepts of transfer pricing.( only theory)
Budgeting as a tool of management control-steps in budget preparation-Functional budget (simple Problems on Sales, Production, Material), flexible budgets. (does not include Masterbudget & Cash budget)
Need for setting standards- development of standards for materialand labour costs- variance analysis –breakup of material and labour cost variances- analyzing overhead variance(only theory)
introduction to cost control- cost reduction- fields covered by cost reduction-tools and techniques for cost reduction. Cost Audit: Scope of cost audit – Types ,Advantages, limitations.(Proportion of problems 60% and theory 40%)