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Strategic Management

Strategic Cost Management and Performance Evaluation

CA Final - Paper 5 : Strategic Cost Management and Performance Evaluation

ICAI has introduced this paper, Strategic Cost Management and Performance Evaluation, at the CA Final level where you will learn about Strategic Cost Management, Strategic Decision Making, Performance evaluation and reporting, Managerial Control and related case studies.

Remember Great things never come from comfort zones” - Wish you all the best 😉 

Basics,Meaning of Costing
Problem 8 and Solution
Concept of Cost of Quality
Paper 1
Paper 2
Paper 3
Paper 4
Paper 6A
Paper 6B
Paper 6C
Paper 7
Paper 8
November 2018
May 2018

More about Strategic Cost Management and Performance Evaluation

What is Strategic Cost Management & Performance Evaluation (SCMPE)?
  • SCMPE (earlier referred as Advanced management accounting or AMA) enables a CA to face today’s ever-growing global business environment with overall skill set.  
  • Strategic Cost Management & Performance Evaluation syllabus is designed to blend the concepts of various strategic cost management in short term decision making in connection with business operations and performance-based evaluation for quality control aspects.  
Why did ICAI introduce this paper, Strategic Cost Management & Performance Evaluation at the CA Final Level?
  • Basic concepts of cost & management accounting have already been covered in CA Inter. Therefore, at this level management objectives are studied with cost concepts for better cost control and cost reduction 
  • This paper makes it easy for CAs to internally monitor the organisation’s performance with developed analytical & evaluation skills 
What are the topics covered in Strategic Cost Management & Performance Evaluation at CA final Level?

In the old syllabus, it was referred as AMA or advanced management accounting which included many QT topics (Quantitative aptitude). In the new syllabus, except learning curve and LPP, no other QT topics are covered. The intention of ICAI is to cover more topics related to decision making. Though topics in AMA are continued like standard costing, marginal costing etc., emphasis in the new syllabus in this paper is more towards case studies related concepts. 

The entire syllabus of Strategic Cost Management & Performance Evaluation is divided into following parts: 

  • Strategic Cost Management 
  • Strategic Decision Making 
  • Performance evaluation and reporting 
  • Managerial Control 
  • Case studies (New) 
What is the best approach to study Strategic Cost Management & Performance Evaluation?
  • As per ICAI, it is not enough for you to apply cost management techniques but also analyse and evaluate the problems. So, it is not enough if you simply solve problems numerically 
  • Know all the concepts to correctly interpret the question and answer 
  • Read the question properly. Make note of all the numerical data given at the beginning of your solution while reading the question. 
  • Examiners play with English in this paper; it is important to get the question right. 
  • Case studies are something new in costing.  Even though they would seem to be lengthy, in most of the cases, you will find a strong hint in the question itself. 
  • Do not skip any chapter because questions can be asked by combining two chapters say, standard costing with learning curve.  
  • In your study material, where you find a complex problem, make a note of the page and refer to it during final revision  


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