MINISTRY OF SCIENCE AND EDUCATION OF THE REPUBLIC OF KAZAKHSTAN
NEI «ALMATY MANAGEMENT UNIVERSITY»
DEPARTMENT: “VALUATION, ACCOUNTING AND AUDIT”
Approved
at the meeting of the Educational
and Methodic Council
Chairman
______________ N. Duysengulova
«__» _________ 2014., №__
Academic program: Bachelors
Specialty: 5B050900 - “Finance”
WORKING PROGRAM
on the course: « Company value management »
Almaty, 2014
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Completed by: MBA, PhD candidate _____________________
Alma Karshalova
The working program has been developed on the basis of the Sample Program of the course (for
mandatory component): “Company value management” for students of the specialty:5B050900 “Finance”
The working curriculum was reviewed at the meeting of the Department of “Valuation,
accounting and audit”
Protocol №1 from “25” August 2014.
Head of the department “Valuation, accounting and audit”
c.ec.s., Docent_____________________
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L.Nurgazieva
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1 Preface
This discipline considers and examines the reveals a role in improving the level of cost and
effectiveness of production and economic activity in the enterprises, as cost is the basis for the
formation of all the cost indicators of the economy.
Methodology of teaching this discipline provides for:
- Lecturing;
- Practical classes conduction;
- IWST;
- IWS.
The purpose of teaching this discipline is to consider during the course of the fundamental
fact involving the study of problems in organization, planning and management in market
economy conditions and management strategies to ensure efficient operation of production
systems.
The objectives of teaching this discipline are: to give students theoretical knowledge about
the essence, the basic laws and principles, cost classification in management; to teach the methods
of design and simulation of production, labor and management processes in the enterprise; to
familiarize with the practical methods of diagnosis costs for the company and the choice of routes
and directions to reduce them; to generate knowledge and skills in organizing and managing the
process and ensure the effective functioning of the enterprise.
Prerequisites: Accounting, Financial accounting
Postrequisites: Advanced managerial accounting
Upon completion of this discipline students must:
master the following competencies according to the competence model of the bachelor
General competencies:
- to know theoretical principles of natural sciences (social, humanitarian, economic), which
contribute to the formation of a well-educated person with a spacious mind; Foundations of
Accounting, Economics, Management, Marketing, Finance, Taxation; Basics of the legal system
of the Republic of Kazakhstan;
- to be able to adequately navigate various social situations; Work in a team; to defend their
positions, and suggest new approaches; Reach compromise, correlate their opinions with the
opinions of the team members; Aim or professional and personal development; Use information
technologies in their professional work; Navigate information streams, and be able to face
challenges of the world economy;
- to have skills in: research skills necessary for day-to-day professional activities and possible
study at master’s programs; Operating an office equipment; Compliance with ethical and legal
norms;
Subject-specialized:
- to know about the essence, the basic laws and principles, cost classification in management;
- to be able to understand practical methods of diagnosis costs for the company and the choice
of routes and directions to reduce them;
- to have skills in organizing and managing the process and ensure the effective functioning
of the enterprise;
Economic and organizational and managerial competencies:
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- to know objectives of the governmental regulation of the economy, and a role of public
sector; Business ethics;
- to be able to follow the common social and ethical norms in their professional life;
- to have skills in decision-making;
2 THEMATIC PLAN OF THE DISCIPLINE
COPANY VALUE MANAGEMENT
№
Theme
In total
1
1
3
6
5
2
The economic nature and
classification of costs
Calculation of production
costs
Cost-benefit analysis when
making
short-term
management decisions
Cost-benefit analysis when
making decisions on capital
investments
Planning (budgeting) costs
6
2
Contact hours
including
Practical
Lectures
classes
4
5
1
1
IWS/
IWU
IWST/
IWUT
7
1
8
3
6
1
1
1
3
6
1
1
1
3
6
1
1
1
3
6
1
1
1
3
The cost of materials
6
1
1
1
3
7
Labor expenses
6
1
1
1
3
8
General and administrative
expenses
6
1
1
1
3
9
Research and development
expenses
6
1
1
1
3
10 Overhead
6
1
1
1
3
11 Value analysis (FCA): goals,
objectives, methods and
procedures
12 Controlling the enterprise
6
1
1
1
3
6
1
1
1
3
13 The strategy of the firm in
relation to costs
14 Cost Control
6
1
1
1
3
6
1
1
1
3
15 Transfer Prices
6
1
1
1
3
90
15
15
15
45
3
4
Total
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3
Content of the discipline
Theme 1. The economic nature and classification of costs
Subject matter and terminology: the cost, costs, expenses, costs, and their similarities and
differences from each other. Explicit and implicit (implicit) costs. Opportunity costs. Irrecoverable
costs. Fixed and variable costs. Gross costs. Direct and indirect costs. Marginal and average costs.
Short-term and long-term costs. Break-even Analysis company (CVP-analysis). Methods of
determining the breakeven point in physical and monetary terms: a graphical method, the
equations.
Theme 2. Calculation of production costs
Full costing. The indirect costs. Methods of cost allocation. Objectives and methods of cost
allocation. The distribution of the costs of responsibility centers. Model calculation of the variable
costs. Grouping of costs into categories, the model "cost-volume-profit" and the concept of profit
margin, the analysis of multi-enterprise. The distribution of costs by type of product. Margin
calculation. Contributions and earnings. The use of marginal costing. Comparison of full and
marginal costing. The basic unit of calculation. Calculation of certain products in the enterprise.
Determination of carrier costs, classification and identification.
Theme 3. Cost-benefit analysis when making short-term management decisions
Break-even point. The assumptions used in analyzing the behavior of costs, profits and
sales. Information on the cost for making decisions about the appropriateness of production,
structure and volume. Opportunity cost, relevance and decision-making
Theme 4. Cost-benefit analysis when making decisions on capital investments
Areas of investment analysis. The concept of project analysis. Investment strategy of the
company: the nature and principles of development. Methods of assessment of investment
attractiveness of the company. Performance evaluation of alternative investment proposals. The
method of determining the economic efficiency of investment. Sources of financing investment.
The financial investment. Leasing - a tool of industrial investment. A portfolio of innovative
projects, the nature, principles and valuation factors. Innovative leasing.
Theme 5. Planning (budgeting) costs
The problems solved on the basis of estimates of production costs. Procedure for the
development of cost estimates. The procedure for calculating the interest rate of indirect costs.
Flexible cost estimates.
Theme 6. The cost of materials
Management of production reserves. The structure of the costs of stockpiling: the cost of
raw materials, the costs of ordering, storage costs, the cost of capital. The method of computing
the optimal cost of procurement. Overseas approaches to reduce the cost of supplies. The concept
of "just - in - time": the nature, background, obstacles to implementation.
Theme 7. Labor expenses
The economic importance of labor costs of personnel. Forms and payroll system. Payroll
(payroll) and its composition: the wage bill of staff, payroll outside the state, compensation,
financial aid, bonuses and other payments. Taxes and deductions from the wages fund: social tax
payments to the pension fund savings.
Theme 8. General and administrative expenses
Administrative expenses (electricity, utilities, security.) Third party services: banking, audit, legal
and telecommunications.Organizational and travel expenses.
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Theme 9. Research and development expenses
The dependence of the cost of research and development work on the innovation strategy
firm. Types of strategies: a simulation and innovation. New product development: stages of the
problem. The ratio of "cost - time." Simultaneous Engineering. The optimal level of innovative
product.
Theme 10. Overhead
Transportation and procurement costs. Ways to reduce transportation costs. Costs of
production infrastructure and service production process for the production of raw materials, fuel,
energy, tools. The cost of repairs of fixed assets. The cost for the sanitary and safety requirements.
Theme 11. Value analysis (FCA): goals, objectives, methods and procedures
The concept of FCA. Stages of the VEA. Advantages and disadvantages of FSA. Unlike
other traditional methods of analysis. FSO.
Theme 12. Controlling the enterprise
Controlling as a method of improving business practices. Controlling the use of effective
enterprise management. Controlling and Cost Management: application in the real sector.
Theme 13. The strategy of the firm in relation to cost
Approaches to reduce costs. The approach, based on carrier costs, trend analysis,
comparative analysis, time factors. Costs that are important in the RK. Policies to reduce costs as
a factor in earnings growth and competitiveness of the firm. Conditions for use of low-cost policy.
Major risk factors for low-cost strategy. The integration of basic business functions (production,
finance, accounting, marketing) in developing and implementing strategies to reduce costs.
Objectives of individual services firms in the area of cost management.
Theme 14. Cost Control
The internal control structure and function. The effectiveness of accounting and control
systems. Factors affecting the internal control system
Theme 15. Transfer Prices
Objectives of transfer pricing. Methods of transfer pricing Transfer pricing, determined by
the method of "cost +".
4 Themes for practical classes
Theme 1. The economic nature and classification of costs
Questions to review:
1. The subject of the discipline, "Cost Management"
2. Classification of costs.
Theme 2. Calculation of production costs
Questions to review:
1. Full costing.
2. Methods of cost allocation.
3. The basic unit of calculation.
Theme 3. Cost-benefit analysis when making short-term management decisions
Questions to review:
1. Break-even point.
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2. Opportunity costs.
3. Relevance and management decisions.
Theme 4. Cost-benefit analysis when making decisions on capital investments
Questions to review:
1. Investment strategy of the company: the nature and design principles and methods of
assessment.
2. Performance evaluation of alternative investment proposals.
3. The financial investment.
Theme 5. Planning (budgeting) costs
Questions to review:
1. Estimates of production costs.
2. The calculation of the interest rate of indirect costs.
3. Flexible cost estimates
Theme 6. The cost of materials
Questions to review:
1. Inventories of the enterprise.
2. The method of computing the optimal cost of procurement.
3. Overseas approaches to reduce the cost of supplies.
Theme 7. Labor expenses
Questions to review:
1. Forms and payroll system.
2. Payroll (payroll) and its composition.
3. Taxes and deductions from payroll.
Theme 8. General and administrative expenses
Questions to review:
1. The cost of maintaining an office.
2. Third party services: banking, audit, legal and telecommunications.
3. Organizational and travel expenses.
Theme 9. Research and development expenses
Questions to review:
1. Types of strategies.
2. New product development: stages of the problem.
3. The optimal level of innovative product
Theme 10. Overhead
Questions to review:
1. Transportation and procurement costs.
2. Costs of production infrastructure and maintenance of the production process.
3. The cost of repairs of fixed assets.
Theme 11. Value analysis (FCA): goals, objectives, methods and procedures
Questions to review:
1. The concept of FCA.
2. Stages of the VEA.
3. Advantages and disadvantages of FSA.
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Theme 12. Controlling the enterprise
Questions to review:
1. Controlling the use of effective enterprise management.
2. Controlling and Cost Management: application in the real sector
Theme 13. The strategy of the firm in relation to cost
Questions to review:
1. Approaches to reduce costs.
2. Policies to reduce costs as a factor in earnings growth and competitiveness of the firm.
3. Conditions for use of low-cost policy.
Theme 14. Cost Control
Questions to review:
1. The internal control structure and function.
2. The effectiveness of accounting and control systems.
3. Factors affecting the internal control system
Theme 15. Transfer Prices
Questions to review:
1. Objectives of transfer pricing.
2. Methods of transfer pricing
3. Transfer pricing, determined by the method of "cost +"
5 Themes, questions and assignments to fulfill IWS
Theme 1. The economic nature and classification of costs
Summary presentation -1 page, Short Quiz 1
1. Subject matter and terminology: the cost, costs, expenses, costs, and their similarities and
differences from each other.
2. Classification of costs according to their economic homogeneity.
3. Classification of costs according to their impact on changes in the volume of production
Theme 2. Calculation of production costs
Written, oral check
1. Types of calculations, the methods of calculation of the cost of production.
2. Calculation of the cost of production at the complex use of raw materials.
3. Factors affecting the calculation of the cost of production.
Theme 3. Cost-benefit analysis when making short-term management decisions
1. Written, oral check
2. Break-even point.
3. The assumptions used in analyzing the behavior of costs, profits and sales.
4. Information on the cost for making decisions about the appropriateness of production,
structure and volume. Opportunity costs, relevance and decision-making
5. Determination of break-even sales volume and the security zone of the enterprise. Analysis
of the factors change breakeven sales volume.
Theme 4. Cost-benefit analysis when making decisions on capital investments
Written, oral check
1. Static methods of investment calculations.
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2.
3.
4.
5.
Dynamic methods of investment calculations.
Method of capitalized costs.
The method of internal rate of interest.
Decision-making on investment projects using the payback method, internal rate of return,
net present value.
Theme 5. Planning (budgeting) costs
Written, oral check, Summary presentation -1 page, Short Quiz 2
1. Procedure for the development of cost estimates.
2. The procedure for calculating the interest rate of indirect costs.
3. Flexible costing
4. Estimating the cost of production of specific products
Theme 6. The cost of materials
Written, oral check
1. Management of production reserves.
2. The structure of the costs of stockpiling: the cost of raw materials.
3. The costs of ordering, the costs of storage, the cost of capital.
Theme 7. Labor expenses
Written, oral check
1. The economic importance of labor costs of personnel.
2. Forms and payroll system.
3. Payroll (payroll) and its composition: the wage bill of staff, payroll outside the state,
compensation, financial aid, bonuses and other payments.
4. Taxes and deductions from the wages fund: social tax payments to the pension savings
fund.
Theme 8. General and administrative expenses
Written, oral check
1. Ways to reduce the cost of the office (electricity, utilities, security).
2. Organizational and travel expenses.
3. The cost of training, social support, sponsorship and philanthropy.
4. Payroll administrative personnel.
Theme 9. Research and development expenses
Written, oral check
1. The dependence of the cost of research and development work on the innovation strategy
firm.
2. Types of strategies: a simulation and innovation. New product development: stages of the
problem.
3. The ratio of "cost - time."
4. Calculating the cost of research and development work construction
Theme 10. Overhead
Written, oral check, Summary presentation -1 page, Short Quiz 3
1. Ways to reduce transportation costs.
2. Costs of production infrastructure and service production process for the production of raw
materials, fuel, energy, tools.
3. Repair expenses fixed assets.
4. The cost for the sanitary and safety requirements.
5. Calculation of the share of overhead cost structure
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Theme 11. Value analysis (FCA): goals, objectives, methods and procedures
Written, oral check
1. Essence of Value analysis, the purpose of carrying out the stages of implementation and
arrangements for.
2. System "just in time" (Just-in-time, JIT) and KANBAN;
3. global quality management (Total Quality Management, TQM);
4. continuous improvement (Kaizen);
5. reengineering business processes (Business Process Reengineering, BPR).
6. Essence of Value analyze, the purpose of carrying out the stages of implementation and
arrangements for.
7. Carrying out activity-based costing in the enterprise.
Theme 12. Controlling the enterprise
Written, oral check
1. Controlling as a method of improving business practices.
2. Controlling the use of effective enterprise management.
3. Controlling and Cost Management: application in the real sector.
4. Milestones on the formulation of a controlling system.
5. Design of the organizational and functional structure.
Theme 13. The strategy of the firm in relation to cost
Written, oral check
1. Approaches to reduce costs.
2. The approach, based on carrier costs, trend analysis, comparative analysis, time factors.
3. Policies to reduce costs as a factor in earnings growth and competitiveness of the firm.
4. Conditions for use of low-cost policy.
Theme 14. Cost Control
Written, oral check, Summary presentation -1 page, Short Quiz 4
1. The internal control structure and function.
2. The effectiveness of accounting and control systems.
3. Factors affecting the internal control system.
Theme 15. Transfer Prices
Written, oral check
1. Objectives of transfer pricing.
2. Methods of transfer pricing
3. Transfer prices are determined by the method of "cost +"
6 List of main and additional literature
Main literature
1. Hansen Mowen, Cost Management: Accounting and Control, 6th Edition, electronic textbook
2. Copeland, T.,Valuation Measuring And Managing The Value Of Companies, 2000,Tom
Copeland, New York: Copyright*
3. Benninga, Simon Z., Corporate Finance a valuation approach/ Simon Z. Benninga, Oded H.
Sarig,1997, New York: McGraw-Hill*
4. Koteneva E.N. , Cost management of the enterprise: a manual, 2012, Moscow: Dashkov K. (A successful business strategy)
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Additional literature
5. Reilly, F. The Handbook of Business Valuation and Intellectual Property Analysis , 2004,
USA: McGraw – Hill*
6. B. Mackenzie, D. Coetsee, T. Njikizana, R. Chamboco , Interpretation and Application
of IFRS , 2012 , Canada: WILEY.*
Periodical Literature:
1. "Economics and Statistics"
2. "Bulletin of the accountant" and its application
3. "Problems of theory and practice of management"
4. "Panorama"
5. "Business Week"
6. http://economics.wideworld.ru/ resource dedicated to the economy and is designed specifical
to help students
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