Course details

Cost Management

NMA FBM BUT nmP Acad. year 2018/2019 Summer semester 4 credits

Current academic year

The course deals with the methods and procedures for management expenses and utilization of cost functions in the pricing decision making, with methods and calculation procedures and their application in decision-making roles of cost management in a manufacturing company, with the transition of cost accounting to management accounting and cost management, with the responsibility accounting, with the cost accounting in relation to processes and activities. It also defines the modern tools of management costs TC, LCC, followed by calculation of costs of individual activities (ABC) and the related method of management processes and activities (ABM). The course primarily provides information for management and decision-making. After completing the course, students will be able to define their requirements for various decision-making tasks, this information categorize, evaluate and present to managers.


Language of instruction




Time span

20 hrs lectures, 10 hrs exercises

Assessment points

100 exam



Hornungová Jana, Ing., Ph.D. (IE FBM BUT)
Pavláková Dočekalová Marie, Ing., Ph.D. (IE FBM BUT)
Součková Markéta, Ing. (IE FBM BUT)

Subject specific learning outcomes and competences

Students will understand the importance of the need of the cost management and its links with the management accounting and control. Students will know the theory of cost, managerial accounting and cost management, information about past phenomena, but also about information necessary for decision-making - budgeting, planning, tools of calculation methods and decision-making role. After completing the course, students will be able to evaluate the results, find shortages, propose solutions, and justify a decision in terms of cost control.

Learning objectives

The aim of the course is to introduce the interaction between financial and cost accounting, managerial accounting and cost management. Cost management acts as a stand-alone tool of the internal management. Analysis of cost behavior and mathematical calculations are important for managerial decision-making. Transition of the management accounting to the cost management concluded overall view of the interconnection of business information systems.

Prerequisite kwnowledge and skills

Students are expected to have general economic knowledge.

Fundamental literature

  • KRÁL,B.a kol. Manažerské účetnictví. 3.doplněné vyd. Praha: Management Press, 2010.660s.ISBN 978-80-7261-217-8. (CS)
  • BREWER,P.C.- GARRISON,R.H.-NOREEN,E.W.Introduction to Managerial Accounting.Published by McGraw-Hill/Irwin. Inc.1221 Avenue of the Americas,New York,NY,10020,2002 by The McGraw-Hill Companies.ISBN 0-07-281787-9. (EN)
  • GARRISON,R.H. Managerial Accounting.Published by McGraw-Hill/Irwin. Inc.1221 Avenue of the Americas,New York,NZ,10020,2003 by The McGraw-Hill Companies.ISBN 0-07-242338 (EN)
  • Hradecký, M., Lanča, J., Šiška, L. Manažerské účetnictví.1.vyd. Grada,2008. 264 s.ISBN 978-80-247-2471-3 (CS)
  • BLOCHER J.E.-CHEN H.K.-COKINS G.-LIN T.W. Cost Management - A Strategic Emphasis. Published by McGraw-Hill/Irwin. Inc.1221 Avenue of the Americas,New York, NY, 10020, 2005, 2002, 1999 by The McGraw-Hill Companies.ISBN0-07-281836-0. (EN)
  • J.Fibírová,L. Šoljaková, J. Wagner Manažerské účetnictví -- Nástroje a metody. 1.vyd.Grada, 2012, 391 s.ISBN 978-80-7357-712-4. (CS)
  • ŠOLJAKOVÁ, L.Strategicky zaměřené manžerské účetnictví.1.vyd.Praha:Management Press.2009.206s.ISBN 978-80-7261-199-7 (CS)

Syllabus of lectures

  1. Content and the cost management. System approach to the cost management.
  2. Breakdown of costs and benefits from the point of view of the needs of management oriented to decision making, opportunity costs
  3. Decision-making tasks. Basic classification criteria of these tasks, CVP. Optimization of production, optimization of the range, decision-making tasks "either-or".
  4. Budgeting in market conditions.
  5. Strategic cost management -calculation of the target costs(Target Costing) and life cycle costing (LCC)
  6. Strategic cost management - calculations by sub-activities - the ABC
  7. Management of processes, operations and activities - the ABC / M
  8. Strategic cost management - value analysis
  9. Strategic cost management-the concept of strategic cost management, factors affecting strategic cost management (TQM, JIT, Theory of restrictions)
  10. Cost Cutting - alternative approaches to cost reduction.

Syllabus of numerical exercises

Each exercise builds on the previous lecture with an emphasis on practical training
1., 2. Relevant, irrelevant costs. Differential costs and revenues. Incremental and border costs. Opportunity costs and revenues-computing examples.
3., 4. Short-term decision-making tasks, safety margins, CVP-computing examples. Optimization of the production-computing examples.
5., 6. Optimization of the range, tasks of either-or "-computational examples. Building of the command budget.
7.,8. Method ABC.
9.,10.Method TC a LCC. Value analysis.
11.,12. TEST I.

Progress assessment

The checking during the semester is based on the completion of the test. In the case of excused absence from seminars, teacher can, in justified cases, set a alternative condition - usually the procession of the alternative

Controlled instruction

There is the oral examination. The student receives two technical questions based on lectures. Student is given classification according to the grading scale ECTS, max score of 60 points.

A 100 - 90
B 89 - 80
C 79 - 70
D 69 - 60
E 59 - 50
F 49 - 0

The grade is given on the basis of test and oral examination.

Exam prerequisites

Skills of the student are tested on one test.
TEST I (7.-8. week): 40 points

Minimum number of points: 20 points.
Correction term is the only one from each test, held in the credit week.

Course inclusion in study plans

  • Programme IT-MSC-2, field MMI, any year of study, Compulsory-Elective group N
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