Parag Gupta Classes

SYLLABUS OF CA FINAL COSTING (SCPM)

PAPER : STRATEGIC COST AND PERFORMANCE MANAGEMENT (100 MARKS) 

Objective
to acquire the ability to apply various cost management techniques for planning and controlling
performance in order to set, monitor and control strategic objectives.
bTo develop skills of analysis, synthesis and evaluation in cost management to address challenges and
issues which might affect or influence the management of performance within organisations.
PART A
1 STRATEGIC COST MANAGEMENT
:An Introduction to Strategic Cost Management
Managing Cost Strategically: Strategic Cost Management, Limitations of Traditional Cost
Management: Traditional vs. Strategic Cost Management
ii Organizational Context: Gaining Competitive Advantage, Value Proposition, Osterwalder’s
Business Model Canvas
iii External Environment Context: Industry Profitability, Basis of Competition, Industry Key Success
Factors, Understanding Customers and Markets
iv Information Technology: Strategic Context- (IS/IT) and Porter’s Five Forces (IT/IS) and the Value
Chain
The Role of Management Accountant as a Leader: Communication, Decision Making, and Business
Ethics
Modern Business Environment
Introduction and Characteristics of the Modern Business Environment
ii Quality to Business Excellence: Cost of Quality, Total Quality Management
iii Supply Chain Management (SCM)
IV. Gain Sharing Arrangements
Downsizing, Outsourcing and Offshoring
3 Lean Systems and Innovation
Introduction to Lean System
Just-in-Time (JIT)
Kaizen Costing
c 5S
Total Productive Maintenance (TPM)
Cellular Manufacturing/One-Piece Flow Production Systems
Six Sigma (SS)

4 Specialist Cost Management Techniques:
i Cost Control/ Waste Control, Cost Reduction
ii Target Costing
iii Throughput Accounting and Theory of Constraints
iv Life Cycle Costing
Environment Management Accounting
5: Management of Cost Strategically for Emerging Business Models:
Changing Business Environment: Digital Technologies, Business Ecosystems, and Hypercompetition
Transformation and Disruption, Advanced Manufacturing, Lean Start-up, Agile Organisations,
Start-ups vs Incumbents, Intrapreneurship, Innovation Hubs and Incubators, Supply Chain
Partnerships
ii. Business Models
hyper-disruptive Business Models
b Models relevant to Sustainability
Models relevant to Emerging National Markets
iii. Strategic Responses to New Business Models
6 Strategic Revenue Management:
Decision-Making Techniques
a CVP Analysis
Relevant Cost Concept
ii. Pricing Decisions:
a. Theory & Principles of Product Pricing
b . Pricing: New Product, Finished Products, Pricing of Services, Emerging Business Models
c. Sensitivity Analysis in Pricing Decisions
Pricing Decision under Special Circumstances
Ethical and Non-financial Considerations
iii. Pricing Strategies:
Pricing Strategies
Kano’s performance attributes
7 Strategic Profit Management:
Operating Profit Analysis
ii. Activity-Based Profitability Analysis, Activity-Based Management (ABM), Activity-Based Budgeting
(ABB)
iii Pareto Analysis

PART B
1: Strategic Strategy Management

An Introduction to Strategic Performance Management;
Performance Management and Its link to Strategy
ii Role of Performance Management in Business Integration using Models such as Value Chain and
McKinsey’s 7S
iii Influence of an Organization’s Structure, Culture and Strategy on Performance Measurement
iv. Strategic Performance Issues in Complex Business Structures
v Behavioural Aspects
Predicting and Preventing Corporate Failure

2 Strategic Performance Measures in the Private Sector:
Critical Success Factors and Link to Performance Measurement, Key Performance Indicators (KPI)
ii Financial Measures: Gross Profit, ROCE, ROI, EPS, RI, NPV, EVA, etc.
iii Non-Financial Performance Measures: Linkage between performance measures (Balanced
Scorecard); Link Strategy, Operations and Performance (Performance Pyramid); Link between
achievement of the corporate strategy and the management of human resources (The Building
Block Model); Triple Bottom Line
iv. The role of quality in management information and performance measurement systems

3 Strategic Performance Measures in Not-for-Profit Organizations:
Diversity in objectives, difficulties in measuring outputs
ii. ‘value for money’ service provision as a measure of performance in not-for-profit organisations
and the public sector
iii Adapted Balanced Scorecard

4: Preparation of Performance Reports

5 Divisional Transfer Pricing:
Meaning, Purpose & Principles of Transfer Pricing
ii Methods of Transfer Pricing
iii. The behavioral Consequences arising from Divisional Structures
iv. International Transfer Pricing

6 Standard Costing:
Analysis of Advanced Variances
ii Integration of Standard Costing with Marginal Cost Accounting
iii. Reconciliation of Profit

iv Variance Investigation Techniques, Interpretation of Variances, Possible Interdependence
Between Variances and Reporting
v Behavioural Aspects of Standard Costing, Limitation of Standard Costing (including its use in the
contemporary business environment

PART C
2 CASE STUDY

: Case Study
Covering Course Concepts
ii Combination of MCQs and extended response questions
General Note-
The Strategic Cost & Performance Management exam builds upon the skills and knowledge
examined in the “Strategic Management” and “Cost and Management Accounting” exams. At this
stage, candidates will be expected to demonstrate an integrated knowledge of the subject and
an ability to relate their technical understanding of the subject to issues of strategic and
operational importance to the organisation.
ii. Basic Applications of the following Quantitative Techniques are required to be studied for linkage
programming to the course concept: (a) linear programming; (b) learning curve/experience curve.

FAQS