Course detail

Cost management

FP-nmKAcad. year: 2011/2012

The course is focused on cost management methods and procedures, on using cost functions in price-related decision-making and creating a price strategy, as well as on calculation methods and their application in cost management decisions in a production company. Also dealt with is the conversion from cost accounting to managerial accounting, costs presentation in a single-circuit and a double-circuit accounting system, managerial accounting related to cost controlling, accounting oriented to performance and responsibility, cost accounting in connection with processes and activities: new use of a traditional tool, integration of relations of plans, calculations, budgets of departments and transfer price accounting.

Language of instruction

Czech

Number of ECTS credits

5

Mode of study

Not applicable.

Learning outcomes of the course unit

The students will understand the meaning and necessity of cost management for management of a firm and its cohesion to managerial accounting and control. The students will have theory knowledge of cost, managerial accounting and cost management, information of past events and also information necessary for decision-making – budgeting, planning, tools of cost methods and decision-making role. After completion of the subject, the students will be able to evaluate reached outcomes of the management, find shortcomings, propose their solution, substantiate results of firm’s business activity and elaborate future perspective.

Prerequisites

Students are expected to have general economic knowledge.

Co-requisites

Not applicable.

Planned learning activities and teaching methods

Teaching methods depend on the type of course unit as specified in the article 7 of BUT Rules for Studies and Examinations.

Assesment methods and criteria linked to learning outcomes

Semestral work 30 points
Passing of the final exam 70 points
Total maximum 100 points

Grading
Grade Number of points
A 100 – 90
B 89 - 80
C 79 – 70
D 69 – 60
E 59 – 50
F 49 - 0

Course curriculum

Relationship between financial, cost, managerial accounting and cost management. Cost management concept.
2. Cost allocation, its relation to management by performance line and by responsibility line (in-house accounting).
4. Costs and profits division in the term of decision-making oriented management needs, opportunity costs.
5. Decision-making tasks. Basic classification criteria of those tasks, CVP. Production volume optimising, assortment optimising, decision-making tasks „either or“.
6. Cost system and its utilisation in management.
7. Standard costs method.
8. Cost management tools.
10. Management of processes, activities and assets – ABC/M method.
11. Budgeting under market conditions.
12. Responsibility management.
13. Summary.

Seminar syllabus:
- Case studies solving.
- Calculation examples solving.

Work placements

Not applicable.

Aims

The aim of the cost management subject is to introduce students with mutual relationships between financial, cost (in house), managerial accounting and cost management. Cost management acts as independent informative tool of the firm’s internal management. It includes classical costing procedures for recording of the internal events, which truly happened in the past, as well as new attitudes ensuring information for managers, i.e. oriented to the future. The Cost management follows the financial and cost accounting, where costs become the decisive element of the firm’s economics. The analysis of costs‘ behaviour and mathematical calculations are important for managerial decision. Conversion of cost accounting to management accounting concludes the general view on mutual connection of the economic information system. The Const Management first of all provides information for management and namely for decision making. The attendant must be able to specify his requirements for number of decision-making tasks, must these information sort, evaluate and submit to managers.

Specification of controlled education, way of implementation and compensation for absences

Preparation for the final exam
Final exam

Recommended optional programme components

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

BLOCHER J.E.-CHEN H.K.-COKINS G.-LIN T.W. Cost Management – A Strategic Emphasis. Published by McGraw-Hill/Irwin. Inc.1221 Avenue of the Americas,New York, NY, 10020, 2005, 2002, 1999 by The McGraw-Hill Companies.ISBN0-07-281836-0. (EN)
KRÁL,B.a kol. Manažerské účetnictví. 3.doplněné vyd. Praha: Management Press, 2010.660s.ISBN 978-80-7261-217-8. (CS)
ŠOLJAKOVÁ, L.Strategicky zaměřené manžerské účetnictví.1.vyd.Praha:Management Press.2009.206s.ISBN 978-80-7261-199-7 (CS)

Recommended reading

Not applicable.

Classification of course in study plans

  • Programme MGR-KS Master's

    branch MGR-ŘEP-KS , 2 year of study, summer semester, compulsory

Type of course unit

 

Lecture

26 hod., optionally

Teacher / Lecturer