115-0543/02 – Cost Management and Price Strategy (CMPS)

Gurantor departmentDepartment of ManagementCredits4
Subject guarantorIng. Kateřina Stanovská, Ph.D.Subject version guarantorIng. Kateřina Stanovská, Ph.D.
Study levelundergraduate or graduate
Study languageEnglish
Year of introduction2014/2015Year of cancellation
Intended for the facultiesEKFIntended for study typesBachelor
Instruction secured by
LoginNameTuitorTeacher giving lectures
BAR404 Ing. Terezie Krestová
ZEL089 Ing. Kateřina Stanovská, Ph.D.
Extent of instruction for forms of study
Form of studyWay of compl.Extent
Full-time Examination 2+0

Subject aims expressed by acquired skills and competences

Introduce the basic concepts of cost theory, the classification of costs according to different perspectives and following methods of cost analysis. Understand the possibilites of using different methods and techniques of cost analysis to make optimal decisions on the efficient structure of cost inputs. Identify the critical control parameters and effects on costs and to characterize their influence on the process of cost management. - Compare and evaluate pricing strategies in response to specific business conditions and forecast their positive and negative impacts.

Teaching methods

Lectures
Individual consultations

Summary

The aim of the lectures is to provide to students basic information about classification costs, creation of cost functions and using the functions in a practical conditions. It is followed by an overview of the pricing and creating pricing strategies, including their practical application.

Compulsory literature:

HANSEN, R.D., M.M. MOWEN and L. GUAN. Cost management: accounting & control. 6th ed. Cengage Learning, 2007. 832 p. ISBN 978-0324-559-675. SCHERMERHORN, J.R. Management. 10th ed. New York: John Wiley & Sons. 2010. 624 p. ISBN 978-0-470-29437-6.

Recommended literature:

DALY, John L. Pricing for profitability: activity-based pricing for competitive advantage. John Wiley and Sons, 2002. 271 p. ISBN 9780471415350. DOYLE, David. Cost Control a strategic guide. 2nd ed. London: CIMA Publishing, 2002. ISBN 978-1859715178 HANNA, R.; DODGE, N. Pricing.Policies and Procedures. Palgrave Macmillan, 1997. ISBN 978-0333694138. LANG, Helmut. Exercises of Cost Accounting. Praha: VŠE, 2003. ISBN 80-245-0596-7. PORTER, M.E. Competitive Strategy: Techniques for Analyzing Industries and Competitors. Simon and Schuster, 1998. 396 p. ISBN 978-0684-841-489.

Way of continuous check of knowledge in the course of semester

E-learning

Další požadavky na studenta

good knowledge of English language

Prerequisities

Subject has no prerequisities.

Co-requisities

Subject has no co-requisities.

Subject syllabus:

1. Characteristics of processes of management and business - The principles and objectives of these processes in an enterprise. - The role of costs in the economic system of the company. - Factors affecting the cost. 2. The concept and structure of costs in the business entity - Characteristics of financial, economic value and concept of costs. - Distribution of costs (generic, self-serving, depending on the volume carried performance for decision-making purposes). - Practical applications of the various classifications in terms of business. 3. Production function - Basic characteristics of the production function. - Approaches to the analysis of production functions, possible applications of the conclusions. 4. Cost function - Basic principles of cost theory. - Characteristics of cost functions. - Approaches to the analysis of cost functions and practical applications. 5. Methods for determining cost functions - Classification method. - Orientation simple methods (two periods, the graphical method). - Statistical methods. - Method of Newton's interpolation polynomial, the conditions of use. - Use of cost functions in cost management. 6. Cost calculations - Breakdown of calculations based on various criteria. - Costing techniques, calculation methods. - Use of cost calculations in the specific business conditions. 7. Standardisation costs - Types of cost standards and how they work. - Cost management in the enterprise with using of standard cost method. 8. Competitive cost strategy of the business entity - Competitive advantage and value chain. - Drivers of cost factors that affect them. 9. Practical techniques and methods of cost management in the business entity - Control of fix costs. - Control of variable costs. - The evaluation criteria in the process of cost management. 10. Basic principles of the theory of demand and pricing - The law of demand and its practical application, - Price elasticity of demand (including the cross, respectively income elasticity) and the factors that affect it. - Classification of forms according to the market price criteria, Amomso-Robinson relationship. 11. The pricing models - Characteristics of price equilibrium in the perfect and imperfect market. - Cost-political models of monopolistic and oligopolistic firms (various criteria). - Applications in concrete terms. 12. The practical orientation of pricing in the business entity - Cost oriented price and their use in pricing strategy. - Demand-orientation of prices and business practices in its application. - Competitive and sectoral orientation of pricing as a basis for conflict-free pricing strategies. 13. Cost strategy of the business entity - Strategies for new products marketed. - Strategies for implementing sale. - Choice of pricing strategies according to the conditions of competition. - Price differentiation strategy and its forms. 14. Practical aspects of pricing decisions in the business entity - Cost Control, its place and role in corporate structure. - The objectives of pricing, price controls, price discounts and rebates, in-house prices. - Legal aspects of pricing in the company.

Conditions for subject completion

Full-time form (validity from: 2014/2015 Winter semester)
Task nameType of taskMax. number of points
(act. for subtasks)
Min. number of points
Examination Examination 100 (100) 51
        Practical exam Written test 30  16
        Theoretical exam Written examination 70  35
Mandatory attendence parzicipation:

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Occurrence in study plans

Academic yearProgrammeField of studySpec.FormStudy language Tut. centreYearWSType of duty

Occurrence in special blocks

Block nameAcademic yearForm of studyStudy language YearWSType of blockBlock owner
Incoming students - bachelor study 2019/2020 Full-time English Choice-compulsory 163 - International Office stu. block
Incoming students - bachelor study 2018/2019 Full-time English Choice-compulsory 163 - International Office stu. block
Incoming Students 2017/2018 Full-time English Choice-compulsory 163 - International Office stu. block
Incoming Students 2016/2017 Full-time English Choice-compulsory 163 - International Office stu. block
Incoming Students 2015/2016 Full-time English Choice-compulsory 163 - International Office stu. block
Incoming Students 2014/2015 Full-time Czech Choice-compulsory 163 - International Office stu. block