Course detail

Cost management

FP-KrnPAcad. year: 2026/2027

This course focuses on the principles of modern cost management and their application in the management of business processes. It provides students with the theoretical and practical foundations of cost management, cost calculations, budgeting, and the analysis of cost information as a basis for managerial decision-making. Attention is given to both traditional and modern approaches to cost calculations (e.g., ABC), process-based cost management, budgeting, and variance analysis. The course also covers the practical application of cost management methods, with an emphasis on data analytics, current trends (Lean, digitalization), and the integration of budgeting with corporate decision-making processes. Students will acquire the skills to perform cost calculations, prepare budgets, evaluate variances, and interpret cost indicators. They will learn to link cost information with performance indicators and use this information for the effective planning and management of business activities.

Language of instruction

Czech

Number of ECTS credits

5

Assignment to study programme types

Bachelor's

Mode of study

Not applicable.

Guarantor

prof. Ing. Alena Kocmanová, Ph.D.

Department

Department 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

Course Objectives

The objective of this course is to familiarize students with the principles of cost management and the use of cost information for planning, decision-making, and monitoring a company’s economic efficiency. The course covers the classification and behavior of costs, the calculation of full and variable costs, selected costing methods, budgeting, variance analysis, and current approaches to cost management. Emphasis is placed on linking theory with practical examples and on the ability to interpret the impacts of changes in costs, prices, output volumes, and capacity utilization.

Learning Objectives

Upon completion of the course, students will be able to:

  • explain the importance of cost management and the basic classification of costs,
  • analyze the behavior of fixed, variable, and mixed costs,
  • calculate and interpret the break-even point and contribution margin,
  • prepare full-cost and variable-cost calculations,
  • use cost calculations when making decisions regarding product mix, pricing, production, or outsourcing,
  • apply selected costing methods and ABC principles,
  • prepare basic operating, capital, and flexible budgets,
  • calculate and interpret basic cost and revenue variances,
  • propose managerial measures to improve cost-effectiveness,
  • explain the use of Lean and Zero-Based Budgeting in cost management.

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.
DRURY, C. Cost And Management Accounting: An Introduction. South-Western Cengage Learning, 2011 p. 476. ISBN 9781408032138.  (EN)

Recommended reading

TAYLES M. Management and Cost Accounting. Cengage Learning EMEA. 2023, p. 896. ISBN 9781473791244.  (EN)
TÓTH, M., ŠAGÁTOVÁ, S.Nákladový controlling.Wolters Kluwer SR s. r. o. · 2020, 168 s. ISBN 9788075989062.  (SK)

Elearning

eLearning: currently opened course

Classification of course in study plans

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

Type of course unit

 

Lecture

26 hours, optionally

Teacher / Lecturer

prof. Ing. Alena Kocmanová, Ph.D.

Syllabus

Lecture Topics

  • Introduction to Cost Management
    Definition of cost management and how it differs from cost accounting. Cost behavior, fixed and variable costs, basic cost classification, and break-even point calculation.
  • Cost Calculation and Its Use in Decision-Making
    Creating cost calculation formulas for manufacturing and non-manufacturing companies; full-cost and variable-cost calculations. Contribution margin; single-stage and brief two-stage variable-cost calculations; application in decision-making regarding product mix, pricing, continuation of production, or outsourcing. Furthermore, analysis of the impact of changes in cost items and the ABC method. Credit Test I.
  • Costing Methods and Process Costing
    The hourly overhead rate method, phase-based and process-based costing, process costing using equivalence units, and a comparison of job-order and process costing.
  • Budgeting and Cost and Output Budgets
    Preparation of basic operating and capital budgets, responsibility center budgets, activity- and center-based cost budgets, fixed and flexible budgets, and linking cost calculations to the budget.
  • Variance Analysis
    Comparison of standard vs. actual figures; calculation of price and quantity/volume variances for materials, wages, sales, and overhead. Emphasis on interpreting causes, assigning responsibility, and proposing managerial actions.
  • Current Trends and Integrated Cost Management in Practice
    Lean and Zero-Based Budgeting as tools for improving cost management. Integration of cost calculations, budgets, and variances into a single system, and a final group case study. Credit Test II.

Exercise

13 hours, optionally

Teacher / Lecturer

Ing. Jan Musil

Syllabus

  1. I

Elearning

eLearning: currently opened course