Course detail

Cost management

FP-KrnKAcad. year: 2020/2021

The course focuses on the value processes conected with particular company's units, then it focuses on budgeting and budgets (rigid and flexible), where students should gain theoretical and practical skills to handle budgets, long-term, short-term budgets and overhead costs budget. The core of the course is costing, namely costing theory and practice of costing - business costs in relation to the cost of individual performances, transformation of costs in the budgeting and accounting (generic costs) and the calculation structure (direct and indirect costs) and the capacitance structure (variable and fixed costs). They go through both traditional and modern approaches in calculations.

Learning outcomes of the course unit

Students will understand the importance and the need of budgeting and costing from the point of view of management and consistency with economic activity within the company. Students will understand the theory of budgets and calculations in relation to practical examples. After completing the course, students will be able to evaluate the performance, find bottlenecks, propose their solutions, substantiate the results of operations of business and create the view of the future.


Students are expected to have general economic knowledge.


Not applicable.

Recommended optional programme components

Not applicable.

Recommended or required reading

KOCMANOVÁ, A. Ekonomické řízení podniku. Praha: Linde a.s., 2013. 358 s. ISBN 978-80-7201-932-8.
FIBÍROVÁ, J., ŠOLJAKOVÁ, L., WAGNER, J. Nákladové a manažerské účetnictví. Praha: ASPI. 2007. 432 s. 978-80-7357-299-0
FIBÍROVÁ, J., OGEROVÁ, B. Řízení nákladů. 1.vyd. Praha: HZ Editio s.r.o.1998. 155 s.ISBN 80-86009-24-6.
MACÍK, K., ZRALÝ,M. Kalkulace a rozpočetnictví. Praha: Vydavatelství ČVUT, 2006.179 s. ISBN 80-01-02611-6.
POPESKO,B. Moderní řízení nákladů.1.vyd. Grada. 2009. 240 s.ISBN 978-80-247-2974-9.

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

Expertise is verified by an oral examination.

TEST 60 points+40 points

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

Language of instruction


Work placements

Not applicable.

Course curriculum

Sylabus of lectures:
Basic concepts, term costing, dcalculation unit, organizational and performance viewpoint of calculation, calculation process, budgets.
Budgeting, budgets and overhead analysis, function and content of the budget, long-term and short-term budgets, fixed and flexible budgets.
Classification of costs, generic costs and calculation costs, costs in relation to the use of operational capacity and other aspects of the structure of costs.
The concept of costing system, costing as part of the economic information system. Calculation of the full costs. Work in progress in terms of calculation, phase and the gradual calculations.
Overhead rates calculation, calculation base and allocation issues of calculation, more accurate costing calculations, usability og calculation of overhead rates.
Differential costing methods, standard costing method.
Dynamic calculation, use of cost functions for calculating the performance.
Calculation of incomplete cost, variable cost method and its application, the contribution to fixed costs and profit of first and second degree. Break-even point analysis.

Each seminar follows the previous lecture with an emphasis on practical training of the lectured topics.
1., 2. Build a short-term budget.
       Generic structure of costs. Checkered table.
3., 4. Creation of costing system in the enterprise.
       Calculation of full cost - dividing, with ratio numbers.
       Phase calculation, sequential.
5., 6. Calculation of overhead rates.
       Dynamic calculation.
7., 8. TEST I. Differential costing methods- standard method.
9., 10. Calculation of incomplete costs - single-stage, two-stage. Break even point.
11., 12. TEST II. Credit.


The aim of the course is to familiarize students with issues of internal departments, with in-house costs in connection with corporate expenses, intercompany profit, internal revenues, internal calculations and creation of internal predation price, relationships between generic and calculation structure of costs (transition table), calculation of the full cost, standardized method of calculation, calculation of incomplete costs (method of variable costs, contribution margin method) and dynamic calculations.

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

Check during the semester is based on the completion of two tests. In the case of excused absence from seminars, teacher in justified cases can set substitute requierement, usually eork out alternative task.

Classification of course in study plans

  • Programme BAK-KS Bachelor's

    branch BAK-EP-KS , 2. year of study, winter semester, 5 credits, compulsory

Type of course unit


Guided consultation in combined form of studies

16 hours, optionally

Teacher / Lecturer