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Strategic Cost Management (SCM) (Paper-16) CMA Final Group 3

Syllabus

SECTION A: STRATEGIC COST MANAGEMENT – TOOLS AND TECHNIQUES [60%]
1. Introduction to Strategic Cost Management - 5%
  • Concepts of Strategic Cost Management in Different Stages of Value Chain
  • Cost Control and Cost Reduction – Contemporary Techniques
  • Value Chain Analysis and Value Engineering - Business Process Re-engineering
  • Supply Chain Management
2. Quality Cost Management - 5%
  • Managing Quality in Competitive Environment
  • Cost of Quality
  • Total Quality Management
  • Lean Accounting
  • Six Sigma
3. Decision Making Techniques (Case Study-based Approach) - 25%
  • Decisions involving Alternative Choices
  • Pricing Decisions and Strategies
  • Transfer Pricing
  • Relevant Cost Analysis
  • Target Costing
  • Product Life Cycle Costing
  • Asset Life Cycle Costing
  • Decision Making using Probability
4. Activity Based Management and Just in Time (JIT) - 10%
  • Activity Based Cost Management - Concept, Purpose, Benefits, Stages, Relevance in Decision-making and its Application in Budgeting, Responsibility Accounting, Traditional vs. ABC System – Comparative Analysis
  • JIT – Introduction, Benefits, Use of JIT in measuring the Performance
  • Throughput Accounting
  • Back flush Accounting
  • Benchmarking
5. Evaluating Performance - 15%
  • Variance Analyses
    • Investigation of Variances
    • Planning and Operating Variances
    • Controllable and Non-controllable Variances
    • Relevant Cost Approach to Variance Analysis
    • Variance Analysis under Marginal Costing and Absorption Costing
    • Activity Ratios
    • Application of Budgetary Control and Standard Costing in Profit Planning
    • Standard Costing Vs Budgetary Control
    • Reconciliation of Actual Profit with Standard Profit and /or Budgeted Profit
  • Uniform Costing and Inter-firm comparison

SECTION B: QUANTITATIVE TECHNIQUES IN DECISION MAKING [40%]
6. Linear Programming - 15%
7. Transportation - 15%
8. Assignment - 15%
9. Game Theory - 15%
10. Simulation - 15%
11. Network analysis – PERT, CPM - 15%
12. Learning Curve - 15%
13. Business Application of Maxima and Minima - 10%
14. Business Forecasting Models – Time Series and Regression Analysis - 10%
15. Introduction to Tools for Data Analytics - 10%