NOTES 5.pdf - CAFCINTER CAFINAL CA FINAL CA MAY'19 REVISION NOTES Costing Part V\/of\ufb01cialjksc Jkshahclasses.com\/revision FINAL C.A COSTING J K SHAH

NOTES 5.pdf - CAFCINTER CAFINAL CA FINAL CA MAY'19 REVISION...

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FINAL CA REVISION NOTES MAY '19 Costing Part - V CAFC INTER CA FINAL CA /officialjksc Jkshahclasses.com/revision
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J. K. SHAH CLASSES FINAL C.A. - COSTING : 1 : REVISION NOTES – MAY ‘19 Chapter Overviews Industry Core segmentation Internal Internal Vertical Structure Competencies Analysis Cost Differentiation Linkage Analysis Analysis Analysis Analysis Analysis Traditional Cost Management Traditional cost management system involves allocation of costs and overheads to the production and focuses largely on cost control and cost reduction. Limitations of Traditional Cost Management head2right Ignores Competition, Market Growth, and Customer Requirement head2right Excessive Focus on Cost Reduction head2right Ignores Dynamics of Marketing and Economics head2right Limited Focus on Review and Improvisation head2right Reactive Approach head2right Short-term Outlook Strategic Cost Management head2right Strategic cost management is the application of cost management techniques so that they improve the strategic position of a business as well as control costs. head2right It also involves integrating cost information with the decision-making framework to support the overall organisational strategy. head2right It is not limited to controlling costs but using cost information for management decision making. head2right The basic aim of Strategic Cost Management is to help the organisation to achieve the sustainable competitive advantage through product differentiation and cost leadership. Components of Strategic Cost Management Strategic Cost Management primary revolves around three business themes - Value Chain analysis, Cost driver analysis and Strategic positioning analysis. head2right Valur Chain Analysis head2right Cost Driver Analysis head2right Strategic Positioning Analysis Limitations of Traditional Cost Management Strategic Cost Management Vision Mission Components of Strategic Cost Management Strategic Positioning Cost Driver Analysis Value chain Analysis Value Shop Model Strategic Frameworks for Value Chain analysis The Value Chain Approach for Assessing Competitive Advantage INTRODUCTION TO STRATEGIC COST MANAGEMENT
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J. K. SHAH CLASSES FINAL C.A. - COSTING : 2 : REVISION NOTES – MAY ‘19 Strategic Positioning Analysis Strategic Positioning Analysis is a company’s relative position within its industry matters for performance. Strategic positioning reflects choices a company makes about the kind of value it will create and how that value will be created differently than rivals. e following factors affect the strategic position of a company – Strategic Position head2right External Enviroment head2right Organisation Values, Culture and Systems head2right Internal Enviroment (Resources and Competencies) External environment can be analysed using models like PESTEL (Political, Economic, Social, Technological, Environmental and Legal factors) and Porter’s 5 forces.
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