Cost Management Techniques

Concept and Type of Cost:
Concept of cost, expenses and losses, Direct and Indirect Cost, Variable and Fixed Cost, Controllable and Non Controllable Cost, Production Cost and Period Cost, Traceable and Untraceable cost, Research Cost, Development Cost, Conversion Cost, Pre Production Cost, Cost Reduction and Cost Control, Shut Down and Sunk Cost, Out of Pocket Cost, Imputed or Hypothetical Cost, Avoidable and Unavoidable Cost, Relevant and Irrelevant Cost
Activity Based Costing: Concept, Nature or Characteristics, Elements, Process or Stages, Advantages, Identification of Cost Drivers, Determination of Cost of each activity, Assigning or Tracing Activity Cost to Products, Distinction between Activity Based Costing System and Traditional System,
 

Personnel Cost Analysis:
Payment of Salaries, Compensation and Bonus to Employees and Managerial Personnel, Compensation to Foreign technicians, Profit sharing plans to executives, Cost Analysis for such Specialisations as labour and executive turnover, Recruitment training and development, Employee Welfare and Fringe Benefits, Overtime Cost Analysis for committee management
 

Budgetary Control System:
Performance Report, Analysis of Budget variance, Revision of Budgets, Budget follow up, Budget Audit, Neo-tric trends in Budgetary Control, Zero Base Budgeting, Programme Budgeting, Performance Budgeting, Rolling System, Preparation of Functional  and Master Budget, Determination of Budget Allowance.

Differential Costing and Short Term Decision Making: Marginal Costing Concepts, Construction of different types of B.E Charts. Price indifference point, Cost Indifference Point. Decision involving (a) Sell or process further (b) Make or Buy (c) Retain or Replace (d) Elimination of unprofitable segments (e) To shift down facilities (f) Changes vs status quo (g) Adding a new product line (h) Decision making under limiting factor (i) Acceptance of Offer