Course detail

Cost management

FP-nmPAcad. year: 2019/2020

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.

Learning outcomes of the course unit

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.


Students are expected to have general economic knowledge.


Not applicable.

Recommended optional programme components

Not applicable.

Recommended or required reading

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)

Planned learning activities and teaching methods

Lectures consist of an explanation of basic principles, methodology of the discipline, problems and their solutions.

Assesment methods and criteria linked to learning outcomes

There is the written and oral examination. The student receives two technical questions based on lectures.
Skills of the student are tested on one test.
TEST I (9-10. week): 40 points

Minimum number of points: 20 points.

Language of instruction


Work placements

Not applicable.

Course curriculum

Content and the cost management. System approach to the cost management.
Breakdown of costs and benefits from the point of view of the needs of management oriented to decision making, opportunity costs
Decision-making tasks. Basic classification criteria of these tasks, CVP. Optimization of production, optimization of the range, decision-making tasks "either-or".
Strategic cost management -calculation of the target costs(Target Costing) and life cycle costing (LCC)
Strategic cost management - calculations by sub-activities - the ABC
Strategic cost management - value analysis
Strategic cost management-the concept of strategic cost management, factors affecting strategic cost management (TQM, JIT, Theory of restrictions)
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.


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.

Specification of controlled education, way of implementation and compensation for absences

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

Classification of course in study plans

  • Programme IT-MGR-2 Master's

    branch MMI , any year of study, summer semester, 4 credits, compulsory-optional

  • Programme MGR Master's

    branch MGR-ŘEP , 2. year of study, summer semester, 4 credits, compulsory
    branch MGR-PFO , 2. year of study, summer semester, 4 credits, compulsory

Type of course unit



20 hours, optionally

Teacher / Lecturer


10 hours, compulsory

Teacher / Lecturer