Set B SPOM (SCMPE) 

Set B SPOM (SCMPE) is one of the most Crucial and important Exam now more than ever since ICAI has made it compulsory for student to clear the exam before appearing for the actual CA Final Exam. This page is an attempt to help student with this exam.

Important Question Chapter Wise

Strategy for SPOM Exam

I Have written a full post on the Strategy student are following to crack the SPOM Exam Please read the Post – Scmpe Exam Strategy

SCMPE Syllabus

PAPER: STRATEGIC COST & PERFORMANCE MANAGEMENT (100 MARKS)

Objective

  • To acquire the ability to apply various cost management techniques for planning and controlling performance in order to set, monitor and control strategic objectives.
  • To develop skills of analysis, synthesis and evaluation in cost management to address challenges and issues which might affect or influence the management of performance within organisations.

PART A: STRATEGIC COST MANAGEMENT

1. An Introduction to Strategic Cost Management

  • Managing Cost Strategically: Strategic Cost Management, Limitations of Traditional Cost Management, Traditional vs. Strategic Cost Management
  • Organisational Context: Gaining Competitive Advantage, Value Proposition, Osterwalder’s Business Model Canvas
  • External Environment Context: Industry Profitability, Basis of Competition, Industry Key Success Factors, Understanding Customers and Markets
  • Information Technology the Strategic Context: IS/IT and Porter’s Five Forces, IT/IS and the Value Chain
  • The Role of Management Accountant as a Leader: Communication, Decision Making, Business Ethics

2. Modern Business Environment

  • Introduction/ Characteristics of the Modern Business Environment
  • Quality to Business Excellence: Cost of Quality, Total Quality Management
  • Supply Chain Management (SCM)
  • Gain Sharing Arrangements
  • Downsizing, Outsourcing and Offshoring

3. Lean System and Innovation

  • Introduction to Lean System
    • Just-in-Time (JIT)
    • Kaizen Costing
    • 5S
    • Total Productive Maintenance (TPM)
    • Cellular Manufacturing/ One-Piece Flow Production Systems
    • Six Sigma (SS)
  • Introduction to Process Innovation

4. Specialist Cost Management Techniques

  • Cost Control/ Waste Control, Cost Reduction
  • Target Costing
  • Throughput Accounting and Theory of Constraints
  • Life Cycle Costing
  • Environment Management Accounting

5. Management of Cost Strategically for Emerging Business Models

  • Changing Business Environment: Digital Technologies, Business Ecosystems, Hyper Competition, Transformation and Disruption, Advanced Manufacturing, Lean Start-up, Agile Organisations, Start-ups vs Incumbents, Intrapreneurship, Innovation Hubs and Incubators, Supply Chain Partnerships
  • Business Models
    • Hyper disruptive Business Models
    • Models relevant to Sustainability
    • Models relevant to Emerging National Markets
  • Strategic Responses to New Business Models

6. Strategic Revenue Management

  • Decision Making Techniques
    • CVP Analysis
    • Relevant Cost Concepts
  • Pricing Decisions
    • Theory & Principles of Product Pricing
    • Pricing – New Product, Finished Products, Pricing of Services, Emerging Business Models
    • Sensitivity Analysis in Pricing Decisions
    • Pricing Decision under Special Circumstances
    • Ethical and Non-financial Considerations
  • Pricing Strategies
    • Pricing Strategies
    • Kano’s performance attributes

7. Strategic Profit Management

  • Operating Profit Analysis
  • Activity Based Profitability Analysis, Activity Based Management (ABM), Activity Based Budgeting (ABB)
  • Pareto Analysis

PART B: STRATEGIC PERFORMANCE MANAGEMENT

1. An Introduction to Strategic Performance Management

  • Performance Management and Its link to Strategy
  • Role of Performance Management in Business Integration using Models such as Value Chain and McKinsey’s 7S
  • Influence of Organisation’s Structure, Culture and Strategy on Performance Measurement
  • Strategic Performance Issues in Complex Business Structures
  • Behavioural Aspects
  • Predicting and Preventing Corporate Failure

2. Strategic Performance Measures in Private Sector

  • Critical Success Factors and Link to Performance Measurement, Key Performance Indicators (KPI)
  • Financial Measures: Gross Profit, ROCE, ROI, EPS, RI, NPV, EVA etc.
  • Non-Financial Performance Measures: Linkage between performance measures (Balanced Scorecard); Link Strategy, Operations and Performance (Performance Pyramid); Link between achievement of the corporate strategy and the management of human resources (The Building Block Model); Triple Bottom Line
  • The role of quality in management information and performance measurement systems

3. Strategic Performance Measures in the Not-for-Profit Organisations

  • Diversity in objectives, difficulties in measuring outputs
  • ‘Value for money’ service provision as a measure of performance in not-for-profit organisations and the public sector
  • Adapted Balanced Scorecard

4. Preparation of Performance Reports

5. Divisional Transfer Pricing

  • Meaning, Purpose & Principles of Transfer Pricing
  • Methods of Transfer Pricing
  • The Behavioural Consequences arising from Divisional Structures
  • International Transfer Pricing

6. Standard Costing

  • Analysis of Advanced Variances
  • Integration of Standard Costing with Marginal Cost Accounting
  • Reconciliation of Profit
  • Variance Investigation Techniques, Interpretation of Variances, Possible Interdependence Between Variances and Reporting
  • Behavioural Aspects of Standard Costing, Limitation of Standard Costing (including its use in the contemporary business environment)

PART C: CASE STUDY

1. Case Study

  • Covering Course Concepts
  • Combination of MCQs and extended response questions

General Note

  • The Strategic Cost & Performance Management exam builds upon the skills and knowledge examined in the “Strategic Management” and “Cost and Management Accounting” exams. At this stage candidates will be expected to demonstrate an integrated knowledge of the subject and an ability to relate their technical understanding of the subject to issues of strategic and operational importance to the organisation.
  • Basic Applications of the following Quantitative Techniques are required to be studied for linkage to the course concept:
  • (a) Linear Programming
  • (b) Learning Curve/Experience Curve

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