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Assumptions
Products
Customers
Regions
Distribution channels
Objectives
To identify cost drivers in an organization and
set targets for cost management initiatives
To appreciate the need and benefits of
becoming a Total Cost Management Company
To understand the tools and techniques of cost
reduction throughout the value chain (external
& internal)
To develop total cost strategies
Subject - Objectives &
Prerequisites
Objectives –
To provide inputs for a strategic overview,
since costs are a key differentiator in
international world
Prerequisites –
Good knowledge of Cost & management
accounting
Subject - Scope
Cost Benefit analysis with reference to strategic
Business Decision Making
Value analysis & Value engineering
Business Process re-engineering
Total quality management Product life cycle costing
Activity based costing
Target Costing
Value chain analysis & long term cost management
Balanced score card
Cost Audit and Management Audit
Wastage control - Total productive maintenance, Cost
reduction and control
Strategic Cost Benefit analysis, restructuring
propositions
SCM - Terms
Overview / Refresh
Costing
Marginal costing
Breakeven Point
Fixed - Variable
Period Cost – Fixed Cost
Activity Related Cost – Variable cost
Cost – Price - Value
Cost Center – Expense Center – Revenue
Center – Profit Center – Investment Center
Cost Unit
Normal Loss - Wastage - Yield
SCM - applications
Pricing - Export Angle/perspective
Pricing – Falling Prices/Recession –
Competition – Price realisation
=Variable/Marginal Cost
Shift working OR Outsourcing
Discontinue / Divest
Special orders
In-house - External processing