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How to study Strategic cost management

Amal G Cherian (student) (37 Points)

12 June 2019

Can anybody suggest me how to prepare for Strategic cost management in Group 2 New final syllabus for Nov 2019 ...I'm confident with other papers in the group.But this paper is clueless...I can't find any solution with respect to its preparation...Pls share ur tips and help me

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Hello CA (self employed) (377 Points)
Replied 12 June 2019

please tell me how to cover IDTL

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Amal G Cherian (student) (37 Points)
Replied 13 June 2019

Hello CA...In my opinion,Institute study material is best to study IDT.Moreover try to study from explanations of provisions in each chapter rather than reading provisions,since it will save your time...Please note that every tax provision have a logic. If u try to understand logic behind every tax provision, it will be more interesting for u. U can also keep it in ur memory for long time, if u study in such a manner. Whenever u read a new tax provision,pls think about the purpose of the provision/logic behind it...This technique working out well in my case. Hope u can also do it better

Back in the Game (a) (1273 Points)
Replied 13 June 2019

@ Amal which book did u refer to understand the logics behind the provisons?

N.Krishna Kumar (-) (284 Points)
Replied 15 June 2019

S T U D Y M A T E R I A L

Amal G Cherian (student) (37 Points)
Replied 15 June 2019

Study material itself

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Vivek soni (Student) (122 Points)
Replied 16 June 2019

Amal.. For strategic cost mgnt u have to practise varieties of questions.. Practise as much as u can

Back in the Game (a) (1273 Points)
Replied 19 June 2019

@ Amal Following is the way about to go for Strategic Cost management.

The Entire of SCMPE is divided into 2 major Segments.One is Standard Costing and other is Marginal costing.In the new Syllabus Standard Costing weighs maximum 10 to 16 marks.So if you have prepared for marginal costing well you will be through with the paper but one cannot do it.In Exams you will get questions on marginal Costing in which concepts of Standard costing will be passively involved.So how to go about.For conceptual clarity knowing fundamentals of Standard costing is must.

Firstly start with Standard Costing,Make sure you have got the concepts right,The coverage of standard Costing will give you the Picture how Costing in an organization works.Whilst doing this Chapter immediately after done ,Do with budgeting both are invariably interlinked.If you are through , the next area is marginal Costing,though there are chapters by different names its all marginal costing,If you are reasonably good enough in Capital budgeting decision aspect of ipcc then the concepts MC are on same lines with complexity growing with respect to situation based problems like Make or buy,Product mix decisions etc.

Note while doing above problems do not focus too much on computation aspect,yes its necessary but your focus should be on analytical aspects.Thats why new Syllbus in SCMPE is evolved for.

The last part here is about performance evaluation - Concepts here are in line with IPCC Ratio analysis or similar frame work is required.So there shoulnt be much problem doing it.

Lastly Pricing decisions - This has to do with Pricing of Service or Products in organization.

Hope it helps.

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