Course Outcome
- Identify and define key concepts of short-term decision-making techniques, including marginal and absorption costing, cost-volume-profit (CVP) analysis, limiting factors, linear programming, differential costing, opportunity costing, and relevant costing.
- Explain the principles and methodologies of decision-making techniques, such as profit calculation under marginal and absorption costing, reconciliation of profits, break-even analysis, opportunity cost, relevant costing, cost indifference analysis, and new concepts like JIT, Life Cycle Costing, and Target Costing.
- Apply short-term decision-making techniques, including CVP analysis, break-even analysis, profit reconciliation, and optimal production planning. Implement costing techniques like JIT, Life Cycle Costing, and Target Costing for performance management and decision-making.
- Analyze cost structures, optimal production plans, and profit differences under marginal and absorption costing. Evaluate linear programming models, opportunity costs, and capacity constraints to make decisions on make-or-buy, pricing, outsourcing, and product mix.
- Critically evaluate decision-making strategies using techniques like throughput costing, JIT, Life Cycle Costing, and Target Costing. Assess the impact of capacity constraints, production decisions, and cost optimization techniques on overall business profitability and operational efficiency.
