One of the reasons for calculating costs is to enable organisations to manage and possibly transform their costs. ABM is a key technique that is used to achieve this objective because of its link to ABC. This revolves around the logic of ABC that links costs to resource consumption and levels of activity and is related to the business model framework. Customer and channel analysis have become very important in the digital world — particularly as customers shift from products and services to experience. How profitable are the segments and channels they use? Quality management is an important part of managing and transforming costs. What are the key methodologies? How do they affect the costs of products, services and the channels that are used to deliver them? Cost transformation must always be linked to the value that organisations create. This part provides the link between costs and value. The quality of decisions depends on the quality and type of data that is available to decision-makers. What type of data do decision-makers need for medium-term decisions? Where do they get this data? In a digital world this would come from data lakes through to data warehouses and business intelligence systems. What are the steps in the investment decision-making process for simple as well as complex decisions? What key concepts underpin the techniques that are used? What are the criteria for accepting projects? How is uncertainty dealt with? This part covers a straight forward application of the techniques used to appraise projects. These should be extended to deal with the evaluation of digital transformation projects that do not have the same profile as other capital projects. What pricing strategies are open to organisations operating in imperfect markets? How do these affect the capital investment decision process? What are responsibility centres and how should they be matched to the strategy of organisations? What are the KPIs of each type of responsibility centre? How is their performance evaluated and why? What types of reports are prepared for responsibility centre managers? How do they use analytics, visualisation and self-service technologies to enhance the performance management of responsibility centres? How are budgets used to evaluate the performance of responsibility centres? What is best practice in this area? How are other methodologies like the balanced scorecard useful in managing performance? What are the behavioural issues in responsibility centre performance management — in particular as they affect controllable and non-controllable costs and revenue? How should they be managed so that responsibility centres work effectively with each other to maximise performance of the whole organisation rather than each responsibility centre? What role can transfer pricing play in this area? What risks do organisations face in relation to capital investment decision-making and the implementation of those decisions? How are those risks incorporated in the decision-making process and managed in the implementation of the decisions?


A.     Managing the costs of creating value

·   Apply cost management and cost transformation methodology to manage costs and improve profitability.

·   Compare and contrast quality management methodologies.

·   Apply value management techniques to manage costs and improve value creation.

B.     Capital investment decision-making

·   Apply the data required for decision-making.

·   Explain the steps and pertinent issues in the decision-making process.

·   Apply investment appraisal techniques to evaluate different projects.

·   Discuss pricing strategies.

C.     Managing and controlling the performance of organisational units

·   Analyse the performance of responsibility centres and prepare reports.

·   Discuss various approaches to the performance and control of organisations.

·   Explain the behavioural and transfer pricing issues related to the management of responsibility centres.

D.    Risk and control

·   Analyse risk and uncertainty associated with medium-term decision-making.

·   Analyse types of risk in the medium term.

Higher Secondary Qualified 

Rs. 29499 Rs. 34999

Course Includes

    ·      Apply the Activity based management (ABM) methodology and Cost transformation techniques to manage costs and improve profitability.

    ·      Compare and contrast Just-in-time(JIT), Quality management, Kaizen, Process re-engineering

    ·      Apply the Target costing, Value chain analysis and Life cycle costing to manage costs and value creation.

    ·      Explain Investment decision-making process, Discounting, Capital investments as real options

    ·      Apply the Payback, Accounting rate of return, IRR and NPV to evaluate projects.

    ·      Analyse performance of cost centres, revenue centres, profit centres, and investment centres

    ·      Discuss budgets and performance evaluation

    ·      Conduct  Sensitivity analysis and Analysis of risk

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