Cost Management

• 20 hrs lectures
• 20 hrs exercises

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.

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.

Students are expected to have general economic knowledge.

• KRÁL,B.a kol. Manažerské účetnictví. 3.doplněné vyd. Praha: Management Press, 2010.660s.ISBN 978-80-7261-217-8.
• 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.
• ŠOLJAKOVÁ, L.Strategicky zaměřené manžerské účetnictví.1.vyd.Praha:Management Press.2009.206s.ISBN 978-80-7261-199-7

• 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.
• 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
• Hradecký, M., Lanča, J., Šiška, L. Manažerské účetnictví.1.vyd. Grada,2008. 264 s.ISBN 978-80-247-2471-3
• J.Fibírová,L. Šoljaková, J. Wagner Manažerské účetnictví -- Nástroje a metody. 1.vyd.Grada, 2012, 391 s.ISBN 978-80-7357-712-4.

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.

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.

Study evaluation is based on marks obtained for specified items. Minimimum number of marks to pass is 50.

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