Course detail

Cost management

FP-KrnPAcad. year: 2025/2026

The course focuses on the value processes conected with particular company's units, then it focuses on budgeting and budgets (rigid and flexible), where students should gain theoretical and practical skills to handle budgets, long-term, short-term budgets and overhead costs budget. The core of the course is costing, namely costing theory and practice of costing - business costs in relation to the cost of individual performances, transformation of costs in the budgeting and accounting (generic costs) and the calculation structure (direct and indirect costs) and the capacitance structure (variable and fixed costs). They go through both traditional and modern approaches in calculations.

Language of instruction

Czech

Number of ECTS credits

5

Mode of study

Not applicable.

Guarantor

prof. Ing. Alena Kocmanová, Ph.D.

Department

Institute of Economics (ÚE)

Entry knowledge

Students are expected to have general economic knowledge.

Rules for evaluation and completion of the course

Expertise is verified by an oral examination. The oral exam consists of two technical questions based on theoretical lectures from the defined management costs area. Student is classificated after answering the given questions according to the grading scale ECTS.
Students skills are tested on two tests. These results can be taken into account in the final oral examination.
Passing two control tests:
TEST I (8th week) 20 points
TEST II (13th week) 20 points
Minimum amount of points to pass the credit is 25 points.
Correction term is in the credit week.
The exam is given on the basis oral examination.
Check during the semester is based on the completion of two tests. In the case of excused absence from seminars, teacher in justified cases can set substitute requierement, usually eork out alternative task.

Aims

The aim of the course is to familiarize students with issues of internal departments, with in-house costs in connection with corporate expenses, intercompany profit, internal revenues, internal calculations and creation of internal predation price, relationships between generic and calculation structure of costs (transition table), calculation of the full cost, standardized method of calculation, calculation of incomplete costs (method of variable costs, contribution margin method) and dynamic calculations.
Students will understand the importance and the need of budgeting and costing from the point of view of management and consistency with economic activity within the company. Students will understand the theory of budgets and calculations in relation to practical examples. After completing the course, students will be able to evaluate the performance, find bottlenecks, propose their solutions, substantiate the results of operations of business and create the view of the future.

Study aids

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

FIBÍROVÁ Jana a kol. Manažerské účetnictví: nástroje a metody. 3.upravené vydání. Praha:Wolters Kluwer ČR, a.s. , 2020. 416 s. ISBN 978-80-7598-885-0.
KOCMANOVÁ, A. Ekonomické řízení podniku. Praha: Linde a.s., 2013. 358 s. ISBN 978-80-7201-932-8.

Recommended reading

DRURY, C. Cost And Management Accounting: An Introduction. South-Western Cengage Learning, 2011 p. 476. ISBN 9781408032138.
KRÁL.Bohumil a kol. Manažerské učetnictví. 4.rozšířené vydání.Praha:Management Press, 2019.792 s. ISBN: 978-80-7261-568-1.

Classification of course in study plans

  • Programme BAK-EP Bachelor's 2 year of study, winter semester, compulsory

Type of course unit

 

Lecture

26 hod., optionally

Teacher / Lecturer

prof. Ing. Alena Kocmanová, Ph.D.

Syllabus

The relationship between financial accounting, cost accounting and management accounting. Concept and breakdown of costs. Methods of cost classification. Type and purpose breakdown of costs, costing breakdown of costs, costs in relation to operating capacity utilisation and other aspects of cost breakdown.
Cost management along performance lines. Costing, departmental and performance aspects of costing, costing process, allocation. Costing by division and costing using equivalence numbers. Concept of the costing system, costing as part of the economic information system of the enterprise.
Full costing. Incremental costing, costing base and allocation issues in costing, applicability of incremental costing. Hourly overhead rate method.
Credit test I.
Full costing. Phased and sequential costing. ABC method.
Incomplete costing, fixed cost allowance and first stage profit. Basic cost, revenue and profit management context. Selling price, variable costs, fixed costs, margin. Break-even analysis, fixed cost allowance and second-tier profit.
Cost budgets in management. Purpose, process and budgeting, cost budgets for centre management. Budgeting methods_ ZBB.
Cost management control tools. Differential costing methods, standard costing method. Standard cost method and variance analysis.
Cost, revenue and profit and loss presentation in cost accounting. Single-circuit and double-circuit system of accounting information.
Accountability management, the relationship between the organisational and economic structure of the enterprise. Value criteria in the management of responsibility centres. Costs, revenues, profit and loss of centres and types of transfer pricing.
Credit test II.

Exercise

13 hod., optionally

Teacher / Lecturer

prof. Ing. Alena Kocmanová, Ph.D.

Syllabus

  1. Introduction to the subject, review of basic concepts - quiz questions - activity with gamification elements (1st and 2nd week)
  2. Calculation examples to practise calculation methods - calculations by simple division, calculations with ratio numbers. The assignment of the examples reflects the situation in a specific ABC company and the emphasis is on comparing the use of different calculation methods. The basic calculation methods will be followed by a case study that will address the calculation system in a given company.
  3. Calculation examples to practice calculation methods - HRS calculation method, Incremental Calculation. Assignment of examples in the form of a case study that will reflect the situation in one of the economic centres of the manufacturing company ABC Ltd. Emphasis will be placed on comparing the advantages and disadvantages of a particular calculation method.
  4. Calculation examples to practise calculation methods - Stepwise calculation, phase calculation - example with the same assignment to clearly distinguish between the two methods - emphasis will be on the different approach in calculations. A case study on the use of variable costing with a one-step reimbursement allowance, then the use of a two-step allowance when modifying the assignment and highlighting the practical use of reimbursement allowances and its important position within incomplete costing. (Weeks 9 and 10)
  5. A case study reflecting a comparison of traditional and modern budgeting methods, including the calculation of variances, the design of corrective measures and an assessment of the real impact of the chosen measures on the economic situation of the enterprise. Application of the brainstorming method and expert discussion of the specific economic situation of the enterprise in the context of the design of corrective measures.