Duration: Duration : To be customized as per requirements of participants/organizations

Program Objective:

The theory and practice of Cost and Management Accounting has seen rapid changes in the 19th and the 20th century. Academia world over have argued over the relevance of cost and management accounting for decision-making and product costing purposes. They contend that while management accounting was an important tool in the nineteenth and twentieth centuries, its importance in terms of both scope and objectives has been dominated by the requirements of financial accounting, with product costing systems increasingly concentrating on manufacturing costs for stock valuations. It is widely believed that the fall of the UK and the US industry during the 1980’s and the 1990’s was caused due to wrong Product Costing, which provided with misleading inputs to managers thereby resulting in wrong and detrimental decision making.. The above mentioned and various other limitations of traditional Cost and Management Accounting have been the prime reason for the emergence of concepts included in Strategic Cost Management Strategic cost management not only leads to incremental performance improvement but also to transformational change across the value chain. Strategic costing is viewed as part of a larger business process to influence decisions on pricing and profitability across several dimensions: product, customer, region, and distribution channel. The focus of this program is to review the various practices being used by the Industry for strategically managing their costs.

Program Content:

• Traditional Cost Accounting – an introduction.
• The Value Chain and the objectives of Cost and Management Accounting.
• Historical perspective (Contentious issues of Cost Sheets)
• Cost of Capital
• Cost of Capital (Dividend valuation and CAPM)
• CAPM with leverage
• Traditional concepts of Allocation
• Strategic Allocation
• Case Study( implementing Standard Costing)
• Case Study (Behavioral issues in Standard Costing)
• Integrated Accounting vs. Conventional Accounting
• Case Study (Target Costing vs. Standard Costing)

Participants’ Profile

• Finance and Accounting professionals. The Program shall also be useful for senior and middle level non finance professionals actively involved in strategy formulation.