PAPER 1: MC.301-BUSINESS PERFORMANCE MEASUREMENT
Objective: The objective of this paper is to make the students familiar with the performance measurement techniques for business.
UNIT-I
Corporate Performance Measurement-Need and Importance; Historical Overview; Product Costing in price estimates and profit management; Techniques to measure and enhance profitability and quality of products and services; Activity Based Management, Target and Kaizen costing; benchmarking and environmental costing; Flexible Budgeting, and Activity Based Budgeting.
UNIT-II
Setting of performance goals and incentives, and the use of diagnostic tools and control; systems to achieve the goals; Strategic Profitability Analysis; Measuring performance using Economic Value Added (EVA) methodology; Comparison between Return on Investment (ROI) and EVA methodology of measuring performance.
UNIT-III
Measurement of Corporate Performance through Balanced Scorecard and its value creation potential;. Rationality behind balance score card; performance dimensions of the balance score card; Throughput Accounting; Comparison of Activity Based Costing.
UNIT-IV
Information Systems aspects of management control; Control-needs of Information flow, and its consolidation in multi-locational setting; Management Control System and its applications; Responsibility Accounting-Meaning and Methodology, types of responsibility centres, organizational structure of responsibility centres; objectives and methods of transfer pricing, pricing corporate services and administration of transfer pricing.