SCPM

Theory - Sampoorna- Book -1

Chapter 1: An Introduction to Strategic Cost Management

Topic P.G no
Managing og Costs Strategically
- Traditional costings & Its Limitations
02
- Strategic cost Management (SCM)
- Tradidional Vs Strategic cost Management

Organisational Context
- Gaianinig competitive Advantage
- Business Model 05
- Osterwards Business Model Canvas
- Value proposition canvas
Exterbnal Environment Context
- Porters five forces
- Understanding customer& market
08
- Basis of Competition
- Industry Key success factors
- Core competencies analysis
Information Technology the strategic contex
- IT/IS and porters five forces 10
- IT/IS and the Value chain
The role of management accountant as a Leader
- Transforming of Mgt Accountant 11
- Mgt Accountant as leader who drives strategy\

Chapter 2: Modern Business Environment

Moder Business envirenment
14
- From sellers market to buyer market
Cost of Quality
- Views regard cost of Quality
- Componets of COQ 14
- Optional COQ
- Steps and Application of PAF Mpdel
Total Quantity Method
- Six C's of TQM
- Contribution in the Field of TQM by Deming 16
- Implementation of TQM
- Criticism of TQM
Supply Chain Management
- Types of Suppy Chain Push and Pull
- Upstream and Downstream flow 18
- Service Level Agreement
- Building resilient and sustainable supply chain
Downsizing , Outsourcing and Off Shoring
- Downsizing
22
- Outsourcing
- Offshoring

Chapter 3: Lean System and Innovation

Lean system
- Just in Time (JIT)
- Kaizen costing
- 5s 24-34
- Total Productivity Method
- Cellular Manufacturing /One piece flow production system
-Six Sigma (DIMAIC & DMADV)
Process Innovation
35
Business Re- engineering Process

Chapter 4: Specialist Cost Management Techniques

Cost Control /Waste Control and Cost Reduction
- Cost Control
38
- Cost reduction
- Diff Cost control & Cost Reduction
Target Costing
- Definition, features scope
- Steps of Target Costing
- Principles of Target costing
40
- Pros and cons of Target costing
- Impact on Profitabiity
- Situations for target costing
- Components of Target costing

Life cycle costing

- Productive life cycle
- Charectaristis of productive life cyce 43
- Its benefits
- Uses of Productive Life Cycle

Theory of Constratints
- Operational measures of Theory of constartints 46
- Goldratts five step method for Improving performances
Throughtput Accounting
47
- Advantages/Disadvantages
Environmental Management Accounting (EMA)
- EMA
- Environmental Information 48
- Methodolog & Role in EMA Product & Decision Making
- Pros & cons of EMA

Chapter 5: Management of Cost Strategically for Emerging Business Models

Chaning Business Environment
- Digital Technology (Block Chain)
-Business Ecosystem
- Hyper competition
- Transformation & Disruption
- Advanced Manufacturing
52
- Lean Start up
- Agile Organisation
- Start up vs Incubents
- Intrapreneurship
- Innovation Hubs & Incubators
- Supply Chain Partnerships
Business Model
- Hyper Disruptive Model (Free Model , Hidden Rvenue , Gift Model, Subscription & Freemium Model)\
60
- Models relevant to Sustainability
- Models relevant emerging national Markets

Strategies Responses to New Business Model

- Staregies of Digital Technology & Advancements
- Value Based Strategies (Value Capture Model) 64
- Focus on series of short term Advantages incase of Hyper competition
- Strategies responses to Transformations & Disruptions

Chapter 6: Strategic Revenue Management

CVP analysis
- Activity Based Costing
68
- CVP in Service & NPO
- CVP in JIT environment
Relevant cost concepts (Short term Decisions )
- Decision Making Model 69
- Some Applications of CVP analysis & Cost Variance
Pricing Policy & Pricing Decisions (Factors Influencing Pricing Decisions) 72
Theory & Principles of Product Pricing
- Pricing Theory
- Profit Maximization model
73
- Pricing under different Market (Perfect Competition Monopoly, Oligopoly etc..)
- Structured approch to Pricing Decision
- Pricing of Product decision
Pricing
- Pricing of New Product
- Pricing methods for Existing Finished products
-Pricing foe Services 75
-Sensitive analyisis in Pricing Decision
- Pricing Decisions in Special Circumastances
- Ethical & Non Financial Consideration
Pricing Strategies
80
- Price Adjustment Strategies
Kanos Performace Attributies 82

Chapter 7: Strategic Profit Management

Strategic Profitability Analysis
- Growth Component
- Price Recovery Component 86
- Productivity Component
- Reconciliation of Operating Profit
Profitability analysis through Activity Based Costing
- Direct Product Profitability 87
- Customer profitability analysis
ABC , ABM & ABB
- ABC in Advanced Mnaufacturing Environment
- Activity Based Cost Management (ABM) 88
-Activity Based Budgeting (ABB)
- ABC Decision Making Tool
Pareto Analysis
- Meaning , Pros & Cons
93
-Application of Pareto & Paroto in ABC
- Quality Control (Machine Capacity Efficiency )

Chapter 8: An Introduction to Strategic Performance Management (PM)

Performance Management & Link To strategy
98
- Interlinking Performance management & Strategy & its Importance
Role of PM in Business integration using models such as Value chain & Mckinsey's 7s
- Business Integration
98
- Value Chain & Value chain Analysis
- MC kinseys 7s
Influence of Organisation 's structure , culture & startegy of PM
- Influence Structure
103
- Influence Culture
- Influence Strategy
Strategic Performace in complex business structure 103
Behavioural Aspects
105
- Accountability , Performance Measures, Management styles & Culture
Predicting and Preventing Corporate Failure
- Why do Companies Fail
106-109
- Need of Predicting corporate Failure
- Predicting Corporate Failure ( Altman Z score, Caculation of A score)

Chapter 9: Strategic Performance Measures in Private Sector

Performance Management sysytem in Private Sectors 112

Interlinking of Critical Success Factors & Key Performance Infdicators 112

Performance Measures
- Pros & cons
- Financial Measures -Gross Profit,ROCE, ROI,EPS 113-120
- Non Financial Measures - Balanced Score, Performance Pyramid, Building Block & Triple Bottom
Line

The Role of Quality performance measurement systems especially in context of Management

121
Information

Chapter 10: Strategic Performance Measures in the Non-for-Profit Organisations

NPO- Chaectaristics 124
Performance Measurement 124
Models for Measuring the Performance
- Value for Money
125
- Adapted Balance Scored model by Kalpan
- Other Performance Measures
Performance Measurement process 126

Chapter 11: Preparation of Performance Reports

Performance Measurement Sysytem 128
Responsibility Accounting 128
Role of Performance Reports in context of Responsibility Accounting
- Performance Report
- Role of Performance Report 128
- Aspects Involed in Preparation of Performance Report
- Types of Performance Reports

Externa Reationship Frame work thata are relevant to Strategic Performace Mgt
- Triple Bottom Line
- Global Reporting Initiative (GRI Report) 130
- ESG Reporting
- Integrated Report (IR)

Analyse the Perforance report to take required action 130

Chapter 12: Divisional Transfer Pricing

Tranfer Pricing
- Utility of Tranfer Pricing 132
- A question of Fair Value
Tranfer pricing Methods
- Market Based Transfer Price
132
- Cost Based Transfer Price
- Negotiation Based Transfer Pricing
Transfer Pricing & Goal Congurance 134
Transfer Pricing Decisions at Different Circumstances
- Different Capacity level 134
- Different Demand Level
Proposals for Resolving Transfer pricing conflicts
- Dual Rate Transfer pricing system 135
- Two Parts Transfer Pricing System
International Transfer Pricing 135

Chapter 13: Standard Costing

Analysis of Advanced Variances
- Planning & Operational Varinaces
- Variance analysis in ABC
- Learning curve Impact on Variances
138
- Relevant cost approches to Variance Analysis
- Variance Analysis & Throughput accounting
- Variance in Manufacturing
- Variance in Service & Public sectors
Standard Marginal Costing & Reconciliation of Profit 140
Investing Varinaces
- its Factors 141
- Its methods (Simple Rule & Statistical thumb rule)

Possible Interdependance between Varinaces & Interpretation of Varinaces

- Material price varinace, material usage variance ,
- Labour rate variance , Labour efficiency variance 143
- Overhead variance
- Sales price varinace & Volume variance
Reporting of Variances - Behavioural Issues in standard costing in contemporay with Business
143
environment
Formulas of Standard Costing 144

Practical Part - SCPM Book -2

Modern Business Environment

Proposal on Inspection charges & Maximum Rejection Rate 1/5
Calculate customer lifetime value per subscriber 3/8
Calculation of Cost of Quality, cost of Benefit to New Quality programme 6/13
Expected Quality Costs 7/17
Effective cost before/afetr inspection 8/18
Statemnt of Total Quality costs 9/20
Cost of Poor Quality per annum due to Defective Items 10/23

Lean System and Innovation

Inventory Holding Cost under Current system/JIT system 1/28
Over all Equipment effectiveness (OEE) 2/29
JIT 3/31, 4/34
Total Productive Method (TPM) 5/37, 6/39, 7/40

Specialist Cost Management Techiques

Target Cost 1/42, 2/43, 7/50
3/45, 4/46, 8/52, 9/54,
Life cycle cost 10/56
Through put contribution -Bottle neck (Product return per Minute ) 5/47
Environmental cost per Kilogram 6/48
Theory of Constraints 11/59, 12/61
Environmental Managmrnt Acccounting 13/63, 14/67
Strategic Revenue Management
Traditional analysis vs ABC analysis 1/73
Cuurent situation/Proposed situation ( Breakeven scenario ) 2/76
Calculation fare for Passenger 3/78
Cost Benefit Analysis 4/80
Decision of Buy unit basis & Total Basis (Most profitable Alternatives) 5/82
Calculation of Minimum Price on Bid 6/84
Decision on Discountinue Division C - Cost Approch 7/86
Decision on Taking the Order on Machine hour Basis 8/87
Optimum Product Mix 9/89
Selling Price Calculation based on Avg Production Hours 10/92
Implementation New sysytem In Canteen 11/94
Profit Improvement Plan 14/99
Optimum Plant Capacity 15/100
calculation of Relevent material cost for deciding wheather to accept offer or not 16/101
Calculation of Minimum unit s.p without loss to company 17/103
Impact of Dropping Flight' 18/106
Decision Making - accepting quotation USD 20/114

Strategic Profit Management

Reconciliation of Revenue/Operating Income 1/121
Direct Product Profitability (DPP) 2/123, 8/136
Profitability per unit for Each Customer & Discount policy on Delivery 3/126
Calculation of Budgeted cost of Each Activity 4/128
Consruct a Pareto Chart/Pareto Analysis 5/131, 12/152, 13/154
Manufacturing Cycle Efficiency 7/134
Customer profitability analysis (CPA) 9/141, 10/144, 11/148
Strategic Performance Measure in Private Sector
Return on Investment Calculations 1/157, 5/164, 6/166

2/159,7/169, 8/172, 9/176

Economic Value Added
3/160, 10/181, 11/183,
Balance scored Approch 12/186
Triple Bottom Line (TBL) 13/189

Strategic performance measures in Non Profit Organisation

Performance measures in NPO 1/192

Divisional Transfer pricing

Transfer price computation 1/200
Market price & Share contribution method 2/201
Transfer price computation with limited labour hours 4/208
Range of Transfer price & Best Strategy for profitability 5/212
Benefit by transfers b/w divisions to evade tax 6/215
Methods of Transfer pricing 8/218, 9/222
10/224, 11/230, 12/232,
Behavioural consequences 13/235
International Transfer pricing 14/241

Standard Costing
1/245, 7/258, 8/ 259,
Planning & Operational & Traditional Variances 9/260, 10/264
ABC with Standard costing 2/246
Learning curve with standard costing 3/247
Reconciliation statement 4/250
Reconciliation statement (Budgeted, Actuals , Variances ) 5/253, 14/276
Sales Varinace 6/255
Variance analysis in ABC 11/267, 12/269, 13/272
15/281, 16/283, 17/285,
Interpretation of Variancs 18/288
Relevant cost with standard costing 19/293