The aim of strategic cost system is designed to monitor the costs incurred by a business. The system is comprised of a set of forms, processes, controls, and reports that are designed to aggregate and report to management about revenues, costs, and profitability.

A strategic cost system (also called product costing system or costing system) is a framework used by firms to estimate the cost of their products for profitability analysis, inventory valuation and cost control.

Estimating the accurate cost of products is critical for profitable operations. A firm must know which products are profitable and which ones are not, and this can be ascertained only when it has estimated the correct cost of the product. Further, a product costing system helps in estimating the closing value of materials inventory, work-in-progress and finished goods inventory for the purpose of financial statement preparation.

Cost system refers to the classifying, recording and appropriate allocation of expenditure for the purpose of determining the costs of products or services. It also helps in the presentation of arranged data for the control purposes and guidance to the management. Cost system deals with the production, selling and distribution costs. It involves the ascertainment of the cost of every job, order, product, process or service. Here, we shall discuss the various objectives of cost system. To enable students to easy understand by describing or giving information about the aims, objectives, methods of cost system, roles, elements of cost system. The students may acquire different role of strategic cost system and design cost system of any organization.

Learning Outcomes

Knowledge

Having successfully completed the module, students should be able:

-          To know the meaning of key concepts of strategic cost system

-          To know the roles, elements and attributes of strategic cost system

-          To know the stages of cost system design project and cost system set up, testing 

Skills

After completing the module, successful students should be able:

ü  To gain familiarity with a phenomenon of strategic cost system

ü  To portray  the roles, elements and attributes of strategic cost system

ü  To deliver cost system design project and cost system set up, testing 

Attitude

Having successfully completed the module, students should be able to demonstrate knowledge of:

ü  Defining very well the key concepts of strategic cost system

ü  Explaining roles, elements and attributes of strategic cost system.

ü  Easy understanding by describing the stages of cost system design project,

Learning and Teaching strategy

Activities and methods used to move the learner towards achievement of the learning outcome. Basic knowledge and understanding are developed in lectures which contain explanations of techniques and strategies.

There will be exercises and assignment to enable the students to reflect on and deepen what they are learning. Some works will be done individually, others in groups Lecture notes are provided at the beginning of the module delivery.

Assessment Strategy

The teaching methods will align with the outcome and with the outcome evaluation. There will be a lot of assessment during the module delivery some of which will be recorded and constitute 60% of the final mark. At the end of the module there will be a final written examination which will count 40%.

Assessment Pattern

Component	Weighting (%)	Learning outcomes covered
Continuous Assessment and Test (CAT)	60%	Refer to Learning outcomes
Final Exams	40%	Refer to Learning outcomes

 

Strategies for feedback and student support during the module

ü  Continuous assessment techniques

ü  Assignments with immediate feedback

     Lecturer’s availability for consultations for which office hours will be announced in advance and respected