Course detail

Strategické řízení nákladů

FP-SsrnKAcad. 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.

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

Knowledge gained from microeconomics, management, business economics, cost management, finance, statistics and mathematics is assumed.

Rules for evaluation and completion of the course

The end of the course is a written examination of professional knowledge.
In the written exam, the student will be given three computational examples and three questions from the theoretical part defined by lectures in the given area of strategic cost management.
The written examination is marked with a maximum of 100 points, of which the calculation example is marked with a maximum of 25 points and the theoretical questions are marked with a maximum of 25 points.

Completion of the course by distance learning:
Completion of the course is by written examination of professional knowledge.
In the written examination, the student will be given three calculation examples and three questions from the theoretical part defined by the lectures in the given area of strategic cost management.
The written exam is graded with a maximum of 100 points, of which the calculation examples are graded with a maximum of 25 points and the theoretical questions are graded with a maximum of 25 points.

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.

Study aids

Strategic cost management for blended learning.

Prerequisites and corequisites

Not applicable.

Basic literature

KRÁL, B. a kol. Manažerské účetnictví. 4.aktual. vyd. Praha: Management Press, 2019. ISBN 978-80-7261-217-8.
ŠOLJAKOVÁ, L. Strategicky zaměřené manažerské účetnictví. Praha: Management Press, 2009. ISBN 978-80-7261-199-7

Recommended reading

BLOCHER J. E. et al. Cost Management – A Strategic Emphasis. Published by McGraw-Hill/Irwin, 2016. ISBN-13: 978-0077733773.
DRURY, C. Management and Cost Accounting.Cengage Learning EMEA, 2016. ISBN 978-1-4808-9393-1.

Classification of course in study plans

  • Programme MGR-SRP-KS Master's 2 year of study, summer semester, compulsory

Type of course unit

 

Guided consultation in combined form of studies

16 hod., optionally

Teacher / Lecturer

prof. Ing. Alena Kocmanová, Ph.D.

Syllabus

Cost management and strategy. A systems approach to cost management. Current business environment. Strategic focus of cost management (Four functions of management).
Current management techniques. Management accounting and the role of cost management.
Planning and decision making. Managerial accounting and decision-making roles. Breakdown of costs and revenues in terms of decision-oriented management needs, opportunity costs.
Decision-making tasks, basic classification aspects of these tasks. Cost - Volume - Profit (CVP) analysis. Strategic role of CVP analysis. CVP analysis for profitability planning, profit planning. CVP analysis with two or more products (services).
Production volume optimization, assortment optimization and "either-or" decision problems.
Strategic cost estimation problem. Cost estimation methods. Analysis (analysis). Regression analysis.
ABC (Activity - Based Costing) method - costing by sub-activities (use in manufacturing companies, non-profit organizations). Strategic role of costing by sub-activities. CVP analysis for activity-based costing.
ABC/M (Activity - Based Costing and Management) method - management of processes, activities and activities.
Life Cycle Costing: Target Costing and Life Cycle Costing.
Strategy and Budget. Strategic goals and long-term objectives in budgeting. Short-term objectives and command budget. Alternative approaches in budgeting (Activity-Based Budgeting (ABB), Time-Driven Activity-Based Budgeting).