UNIVERSITY OF MADRAS
M.Com. (GENERAL) DEGREE PROGRAMME
SYLLABUS WITH EFFECT FROM 2023-2024
First Year Core – IV Semester II
Marks
Inst. Hours
Category
Course
Credits
External
Title of the Course L T P O
Total
CIA
Code
STRATEGIC COST 6 - - - 5 6 25 75 100
413C2A
MANAGEMENT
Learning Objectives
1 To analyse the aspects of strategic and quality control management
2 To analyse and select cost control techniques
3 To apply activity based costing for decision making
4 To utilise transfer pricing methods in cost determination
5 To apply cost management techniques in various sectors
Course Units
UNIT I (18 hrs)
Introduction to Strategic Cost Management
Introduction to Strategic Cost Management (SCM) – Need for SCM – Differences
between SCM and Traditional Cost Management - Value Chain Analysis: Meaning and
steps - Quality Cost Management: Meaning of Quality and Quality Management – Cost
of Quality –Indian Cost Accounting Standard 21 on Quality Control - Introduction to
Lean System – Benefits of Lean System – Just in Time (JIT) – Kaizen Costing.
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UNIVERSITY OF MADRAS
M.Com. (GENERAL) DEGREE PROGRAMME
SYLLABUS WITH EFFECT FROM 2023-2024
UNIT II (18 hrs)
Cost Control and Reduction
Cost Management Techniques: Cost Control: Meaning and Prerequisites - Cost
Reduction: Meaning and Scope – Differences between Cost control and cost reduction -
Pareto Analysis: Meaning, importance and applications - Target Costing: Meaning, steps
and Principles – Life Cycle Costing: Meaning, Strategies for each stage of product life
cycle, Benefits – Learning Curve: Meaning, Learning curve ratio and applications.
UNIT III (18 hrs)
Activity Based Cost Management
Activity Based Cost Management: Concept, Purpose, Stages, Benefits,Relevance in
Decisionmaking and its Application in Budgeting – Practical problems.
UNIT IV (18 hrs)
Transfer Pricing
Transfer Pricing: Meaning, Benefits, Methods: Pricing based on cost, Market price on
transfer price, Negotiated pricing and Pricing based on opportunity costs – Practical
Problems.
UNIT V (18 hrs)
Cost Management in Agriculture and IT sector
Agriculture Sector: Features, Cost Structure, Cost Management, Tools to measure the
performance, Minimum Support Price and International Perspective –Information
Technology Sector: Features, Cost Structure, Cost Management and International
Perspective.
Theory 20% Problems 80%
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UNIVERSITY OF MADRAS
M.Com. (GENERAL) DEGREE PROGRAMME
SYLLABUS WITH EFFECT FROM 2023-2024
Course Outcomes
Students will be able to
CO No. CO Statement Knowledge
level
1 Explain strategic cost management and QC K2
2 Choose the appropriate technique for cost control K3
3 Make use of activity based costing in practice K3
4 Choose transfer pricing methods to solve problems K3
5 Construct cost structure for Agriculture and IT sector K3
Books for study:
1. Ravi M Kishore (2018), “Strategic Cost Management”, 5thEdition,
TaxmannPublications Pvt. Ltd, New Delhi.
2. Bandgar P. K., (2017), “Strategic Cost Management”, 1stEdition, HimalayaPublishing
House Pvt Ltd, Mumbai.
3. Sexena V. K., (2020), “Strategic Cost Management and PerformanceEvaluation”,
1stEdition, Sultan Chand & Sons, New Delhi.
Books for reference:
1. John K Shank and Vijay Govindarajan (2008), Strategic Cost Management, Simon &
Schuster; Latest edition, UK
2. Jawahar Lal, (2015), “Strategic Cost Management”, 1st Edition, Himalaya Publishing
House Pvt Ltd, Mumbai.)
3. Arora M. N., (2021), “A Text Book of Cost and Management Accounting”,
11 thEdition, Vikas Publishing House Pvt. Ltd., New Delhi.
Web references:
1. https://www.accountingtools.com/articles/strategic-cost-management.html#:~:text=
Strategic%20cost%20management%20is%20the,it%20or%20have%20no%20impact.
2. https://ca-final.in/wp-content/uploads/2018/09/Chapter-4-Cost-Management-
Techniques.pdf
3. https://resource.cdn.icai.org/66530bos53753-cp5.pdf
Note: Latest edition of the books may be used
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UNIVERSITY OF MADRAS
M.Com. (GENERAL) DEGREE PROGRAMME
SYLLABUS WITH EFFECT FROM 2023-2024
Mapping of course outcomes with POs and PSOs
Pos PSOs
1 2 3 4 5 6 1 2 3
CO1 3 3 3 3 3 3 3 3 3
CO2 3 3 2 3 3 3 3 3 3
CO3 3 3 2 3 3 3 3 3 3
CO4 3 3 2 3 3 3 3 2 3
CO5 3 3 1 3 3 3 3 3 3
High – 3 Medium – 2 Low – 1
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