16MBAFM305 Cost Management syllabus for MBA

Introduction to Cost Management- Cost Accounting to Cost Management- Elements of costs- Classification of costs-Methods of costing-Cost Management Tools- A Strategic View to Cost Management- Preparation of a cost sheet

Overheads, Classification and Collection, Difference between Cost Allocation and Cost Apportionment, (Full fledged Problems on Primary and secondary distribution, Simultaneous equations, Absorption of Overhead, Theory on Under and Over absorption of Overhead)

Marginal Costing – Nature and Scope- Applications-Break even charts and Point, DecisionMaking (all types with full problems) Differential Cost Analysis, Advantages and Disadvantagesof Marginal Costing.

Budgetary Control:- Objectives of Budgetary control, Functional Budgets, Master Budgets, Key Factor Problems on Production Budgets and Flexible Budgets. Standard Costing:- Comparison with Budgetary control, analysis of Variances, Simple Problems on Material and Labour variances only .

Demerits of Traditional Costing, Activity Based Costing, Cost Drivers, Cost Analysis Under ABC ( Unit level, Batch Level and Product Sustaining Activities), Benefits and weaknesses of ABC

Cost Audit& Reporting to Management:-objectives and advantages of Cost Audit , Cost Audit report .Management Audit- Objectives and Scope. Reporting to Management – Purpose of reporting-Requisites of a good report,, Classifications of Report, Segment reporting, Cost Reduction and Cost Control, Target Costing – its Principles, Balanced Scorecard: Features and Purpose

(Question Paper:50% Theory and 50% Problems)

Practical components:

• Students can take up a product and get details about the actual cost of raw material, wages and other cost and prepare a cost statement. Standard cost of each component has to be obtained and the variance can be calculated to find the efficiency of Purchase, Operations and Production in charge.