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FP-srnPAcad. year: 2024/2025
The course discusses the strategic approach to cost management and covers the basic concepts of cost management systems in today's business environment, including current management techniques. It focuses on the tools that companies use to implement strategy, e.g. BSC, strategy map, value chain, including the application of these tools in practice. The course discusses how cost management information can be used strategically by managers to support planning and decision making, both in the short and long term. Includes cost estimating - how cost estimating equations are used to predict costs using cost drivers. Discusses statistical and non-statistical approaches to cost estimating equations; short-term profit planning tool, volume, cost and profit analysis. Focuses on the practical use of costing to address decisions such as whether to manufacture or purchase a component of a manufactured product or service, when to add product features, and when to accept one-off orders from customers. It also examines strategically important advances in product costing, called Activity Based Costing (ABC) and the related method of Process and Activity Based Management (ABM). The course also covers the concepts of value chain and life cycle analysis as planning and cost reduction tools - Target Costing and Life Cycle Costing. Budgeting is a key planning tool - for example, Activity Based Budgeting (ABB) and the impact of activity-based costing on budgeting systems.
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Entry knowledge
Knowledge gained from microeconomics, management, business economics, cost management, finance, statistics and mathematics is assumed.
Rules for evaluation and completion of the course
Completion of the course: examination: professional knowledge is verified by written and, if necessary, oral examination. In the case of the written exam, the student will be asked questions from the theoretical part defined by lectures in the given area of strategic cost management; in the case of the oral exam (in case of a tie in the written exam), the student's deeper knowledge of the given subject is verified.
Credit: The student's professional skills are verified on the basis of written tests. TEST1 (5th and 6th week of the academic year): max. 20 points; TEST2 (9th and 10th week of the academic year): max. 20 points.Min. number of points for credit 25 points. According to the Study and Examination Regulations, there is no remedial term of credit.
Completion of the course for students with individual study. In the written exam, the student is asked questions from the theoretical part defined by the lectures in the given area of strategic cost management, in the oral exam (in case of a tie in the written exam), the student's deeper knowledge of the subject is tested.
Credit: The student's professional skills are verified on the basis of tests. TEST1 max. 20 points; TEST2max. 20 points Minimum number of points for credit 25 points. According to the Study and Examination Regulations, there is no remedial term of credit.
Completion of the course in distance form: Examination.Expert knowledge is verified by a written examination in the form of an open-ended test (on-line) of the theoretical part defined by lectures in the given area of strategic cost management.
Credit: The student's professional skills are verified by an on-line test. The student's professional skills are verified by written tests. TEST1 (weeks 5 and 6 of the academic year): max. 20 points; TEST2 (weeks 9 and 10 of the academic year): max. 20 points. The minimum number of points to be awarded credit is 25 points. According to the Study and Examination Regulations, there is no remedial term of credit.
Aims
The aim of the “Strategic Cost Management” course is to acquaint students with methods and procedures of strategic cost management, using cost functions for price decision-making and designing pricing strategies, with the methods and procedures of calculations and their application in decision-making tasks of cost management. Students will also learn about modern tools of strategic cost management, TC and LCC, the calculation of costs according to partial activities (ABC) and the related method of process and activity management (ABM); these tools are widely used in foreign companies. Upon completion of the course, students will be able to use these tools for various decision-making tasks related to the management of costs and strategies in manufacturing companies and non-profit organisations.Students will understand the importance and need of strategic cost management for companies and non-profit organisations and their interdependence with managerial accounting and control. Students will take the theory of managerial accounting as a basis and know the strategy of cost management; they will also know the information about past phenomena, as well as the information necessary for decision-making – tools of calculation methods and decision-making tasks. Upon completion of the course, the students will be able to evaluate the results achieved, find shortcomings, propose their solutions and make justifications and decisions from the point of view of the strategic cost management.
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