Study Notes

UNIT 1: Cost Control and Cost Reduction: Meaning of cost control and cost reduction, areas covered by cost control and cost reduction – product design, target costing, value analysis, value engineering, value chain analysis, Business Process Re- Engineering (theory only) Pareto Chart.   UNIT 1:  COST CONTROL AND COST REDUCTION Definition  Cost management   cost management is used “to describe the approaches and activities of managers in the short term and long term planning and control decisions that increase value for customers and lower costs of products and services. " According to Hansen and Moven, “Cost management identifies, collects, measures, classifies and reports information that is useful to managers in costing (determining what something costs), planning, controlling and decision making.”  It may thus be said that cost management is the practical application and use of cost accounting methods and techniques by the management to improve business performance.  Advantages

Strategic Financial Management UNIT 1  Strategic Decision Making Framework Strategy Strategy is a course of action that specifies the monetary and physical resources required to achieve a predetermined objective, or series of objectives.  Strategic Management Strategic management is the process of  planning, monitoring, analysis and assessment  of all necessities an organization needs, to meet its goals and objectives , to make it more competitive. Strategic management can also be defined as a bundle of decisions and acts which a manager undertakes and which decides the result of the firm’s performance. An organization is said to have competitive advantage if its profitability is higher than the average profitability for all companies in its industry. Strategic management can also be defined as a bundle of decisions and acts which a manager undertakes and which decides the result of the firm’s performance. The manager must have a thorough knowledge and analysis of the general and compe

  Unit 1:  Introduction to Indian Accounting Standards  Overview of Accounting Standards – Objectives of Accounting Standards – Benefits and Limitations of Accounting Standards – Process of Formulation of Accounting Standards in India – List of Indian Accounting Standards (Ind AS) – Need for Convergence Towards Global Standards– International Financial Reporting Standards as Global Standards – Benefits of Convergence with IFRS – Applicability of Ind AS in India.   Accounting Standards Accounting standards are written statements of standardised accounting rules and procedures used in practice to ensure that financial statements are prepared in a uniform and consistent manner An accounting standard is a set of practices and policies used to systematise bookkeeping and other accounting functions across firms and over time. Banks, investors, and regulatory agencies count on accounting standards to ensure information about a given entity is relevant and accurate.They are the framework of r