Strategic Cost Management: Course Overview and Key Learning Outcomes

Name: [Strategic Cost Management] General Subject Orientation
Uploaded: 2026-01-13T22:36:45.504912+00:00
Channel: Sir Chua's Accounting Lessons PH
Description: Summary and key takeaways on Strategic Cost Management: Course Overview and Key Learning Outcomes, covering Introduction The video introduces the Strategic

Sir Chua's Accounting Lessons PH

Jan 13, 2026

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3 min read

YouTube video ID: -9XBIxX0Lo8

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Introduction

The video introduces the Strategic Cost Management course offered by Search WAS Accounting Lessons PH. Lecturer Kevin Troy ([email protected]) welcomes students, encourages engagement on the channel, and outlines the purpose of the subject.

Purpose of the Subject

Use accounting as a decision‑making tool for managers.
Integrate cost management with overall business operations.
Apply strategic cost concepts to improve planning, control, and performance evaluation.

Core Themes Covered

Foundations of management accounting and its expanding role.
Organizational structure, professional ethics, and design of accounting systems.
Interpretation of financial statements for strategic insight.
Performance measurement techniques (marginal, absorption, opportunity costing, CVP analysis, etc.).
Segment reporting, profitability analysis, and decentralization.
Non‑financial indicators (productivity per employee, service unit, environmental cost accounting).

Learning Expectations

Describe strategic cost management and its importance to businesses.
Interpret financial statements to extract decision‑relevant insights (focus on analysis, not preparation).
Apply knowledge from strategic cost management, accounting, and financial reporting to solve problems holistically.
Develop creative, flexible managerial approaches—unlike the rigid standards of financial accounting.
Understand ethics, organizational roles, and techniques for segment reporting and profitability analysis.

Grading and Course Orientation

Students should consult their university’s syllabus for the specific grading system.
A detailed course orientation will cover grading, class policies, and synchronous session logistics.
The general orientation video serves as a universal introduction for all viewers.

Detailed Topic Breakdown

1. Introduction to Strategic Cost Management & Management Accounting
Management concepts, objectives, differences between financial and management accounting, MIS and accounting system design.
2. Cost Concepts, Classifications & Cost Behavior
Review of direct/indirect, product/period costs, fixed vs. variable, mixed‑cost separation (high‑low, regression).
3. Product Costing
Absorption vs. variable costing, income‑statement preparation, reconciliation, managerial implications.
4. Cost‑Volume‑Profit (CVP) Analysis
Break‑even point, target profit, sales‑mix, operating leverage.
5. Activity‑Based Costing (ABC) & Service Cost Allocation
Comparison with traditional costing, allocation methods (direct, step‑down, reciprocal).
6. Standard Costing & Variance Analysis
Material, labor, overhead variances; multi‑product price‑mix and yield analysis.
7. Budgeting & Short‑Term Planning
Operating vs. financial budgets, master‑budget preparation, short‑term vs. capital budgeting.
8. Differential Cost Analysis & Decision Making
Relevant vs. irrelevant costs, make‑or‑buy, special orders, shutdown decisions, product/segment retention, sell‑or‑process‑further.
9. Responsibility Accounting & Performance Measures
Goal congruence, centralized vs. decentralized structures, responsibility centers (revenue, profit, investment), evaluation techniques.
10. Transfer Pricing & Pricing Decisions
Principles, market vs. cost‑plus pricing, negotiation‑based pricing, formula applications.
11. Balanced Scorecards & Non‑Financial Measures
Development of scorecards, qualitative performance indicators beyond numeric data.

Course Philosophy

Strategic Cost Management moves beyond mere computation; it emphasizes analysis, interpretation, and strategic decision‑making to add value and drive organizational success.

Closing Remarks

The lecturer reiterates the call to like, share, and subscribe, and invites comments, questions, and speaking engagements via the provided email.

Strategic Cost Management equips students to transform accounting data into strategic insights, enabling them to make informed, value‑adding decisions that drive organizational performance.

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Full Transcript YouTube

[Music]
[Applause]
[Music]
hello everybody welcome to search was
accounting lessons ph
and this is our general subject
orientation for the course
strategic cost management at the end of
the video you should be able to have a
basic understanding of the purpose of
the subject
and enumerate the lessons and topics
covered by the subject strategic cost
management
this is your lecturer kevin troyemcua
before anything else please like share
and subscribe to search uwa's accounting
lessons ph
and hit the notification bell button to
alert you of the latest video lessons
for all of your questions comments and
suggestions please put them down in the
comment section below
and for webinar and speakership invites
please send me a message at kevin troy
the chihuahua 1994
gmail.com thank you very much for your
utmost support for search was accounting
lessons ph
and may these videos continue to help
students in their online learning and
academic development
may these videos continue to help
teachers in enhancing their lesson plans
and teaching methodologies
thank you very much for trusting search
was accounting lessons ph
as your online learning partner
and this is strategic cost management
the course is designed to acquaint you
the students with the role of accounting
in the management team
by providing and assisting in the
analysis
interpretation and forecasting of
business organizations
basically we will be using accounting as
a tool
by the management for decision making
so this course is about managing
not only cost but the operations in
itself
and we will be using accounting as a
tool so that you can further analyze
interpret and forecast business
organizations
okay and then um much of the
discussions will be about strategic cost
management how to properly
and strategically manage and control
your costs
okay it covers the discussion of the
foundation
of management accounting so as you know
management accounting is a branch of
accounting that
deals with decision making by owners and
managers so we will be applying
that here okay it's expanding role
organizational structure and
professional ethics
for management accountants the design of
management accounting systems and
evaluation of the impact of changes in
business structure
functions and appropriateness of
management accounting techniques and
methods
basic interpretation and use of
financial statements
performance measurement for planning and
control such as marginal
absorption opportunity costing cost
behavior
cvp analysis quantitative techniques and
methods for planning and control
this course also deals with the
application and techniques focusing on
segment reporting
profitability analysis and
decentralization
information for decision-making purposes
which can be both
short-term or long-term and
non-financial indicators such as
productivity per employee
productivity per service unit decision
making affecting short-run operations
pricing of goods and services and
environmental cost accounting that is
per the pup core syllabus
in strategic cost management so
basically strategic cost management
is a managerial control and costing
systems
we will be applying management
accounting and we will be using
accounting as a primary tool
in operational decision making
this is what the subject is all about
okay what are the expectations uh
for you the students after completion
of this course number one describes
strategic cost management
and its importance to business
organizations so why is management
accounting why is strategic cost
management important for each entity
okay and then understand financial
statements and its components and derive
insights for from these for decision
making
since this is not a financial accounting
class we will not
be talking about the preparation of
these statements rather
we will now be focusing on the use of
these financial statements
to use them as well as a tool for
decision making
analyze them so that we can see the
future
out of it okay so basically we need to
plan
for the future and we will be using your
previous historical information
to derive insights so that you can do a
decision for the future okay
and then apply and relate the skills and
knowledge obtained in strategic cost
management accounting and financial
reporting to arrive at a holistic
approach
in solving problems here in strategic
cost management you are expected to be
creative managers
because you will be taught to become
good decision
makers you will be trained here to
become good managers at your own
uh as a management accountant or a
manager in a firm okay
so you need to arrive at a holistic
approach
in solving problems and not just being
in the box that's the and as you know
that's the main difference between
financial accounting and management
accounting we are more flexible
in management accounting unlike in
financial accounting where we follow
standards
okay so we need to arrive here at the
holistic approach a very creative
approach coming from you
on how to solve different problems and
how to make proper decisions
understand management accounting its
expanding role
organizational structure and
professional ethics for management
accountants what are expected of you
guys and know the application and
techniques focusing on segment reporting
profitability analysis and
decentralization
information for decision making purposes
which is both short-term and long-term
and any non-financial indicators that
might affect the decision of the
managers
okay we will not be only talking about
compensations here
but rather the analysis and
interpretation and even non-financial
indicators
that will affect your decision
to contribute and add value to the
entity
okay now for your grading system
please check your school's course
syllabus for this subject for the
grading system
well this general subject orientation
can be accessed by everyone so
pretty much everyone can access this but
if you're not from the polytechnic
university of the philippines who will
primarily use this videos
please check your school score syllabus
for the grading system
and then attend also the specific course
orientation that will be conducted by
your professor
now if you're under me we will be having
a specific
course orientation which we will be
talking about the grading system the
technicalities and how we will be doing
the synchronous classes
and classroom policies if i should call
it classroom policies
basically the class policies and uh
that's it the grading system itself okay
and the expectations for the course okay
so
but if you're um watching this
uh this will do for you the general
orientation and then check your
uh your syllabus for the grading system
of your
university
okay so at a glance these are the topics
that we will be
talking about in strategic cost
management okay
the first one is introduction to
strategic cost management and
management accounting basically this is
a management accounting class
however we will now be using
your learnings as well in strategic
management
and apply it in cost control so if you
combine that that is basically strategic
cost management to make you
good decision makers okay and then we
also have
cost concepts classifications and cost
behavior sounds familiar
and then product costing a uh with the
use of absorption costing
versus variable costing and then we also
have your cvp
or cost volume profit analysis and then
we also have your activity based costing
and service cost allocation sounds
familiar
and then we also have your standard
costing for cost control
sounds familiar again right and then
business planning and short term
budgetary system
differential cost analysis
responsibility accounting and
performance measures
transfer pricing and pricing decisions
and balance scorecards and non-financial
measures
and performance evaluation some of the
topics here are already discussed
to you in your cost accounting class
however
cost accounting class is more of the
competition
okay how much is the product cost how
much is the fixed
cost how much is the cost of goods sold
under normal costing
cost accounting is more procedural and
computational
in strategic cost management after you
compute
you analyze you interpret you decide and
you think about it
because here the expectation is after
you do all these computations and
analysis
what will you do as a manager and
what will you do to properly decide
in the choices that is in front of you
for the entity
strategic cost management management
accounting is all about
creating better decisions that would add
value
to the success of the company
that's basically what strategic cost
management is and that's we will be
talking about for the whole
semester let's look about let's look on
them one by one
okay so uh introduction to strategic
cost management and management
accounting so we will be
introdu introducing you to different
management concepts and strategic cost
management
but if you're a graduate of the
accountancy business and management
strand
basically you already had your
organization and management
course or subject in your senior high
school
i think that this will be a bit easy for
you okay
the management concepts okay and then we
will now be also focusing on management
accounting and its objectives
and then the differences between
financial cost and management accounting
some of you
who already watch my videos in cos
accounting you actually know about this
already that venn diagram right and then
management information systems and
accounting systems and design
and different management control systems
basically your topic number one is the
introduction
of the whole subject okay and then for
your
next uh lesson which is cost concepts
classifications and cost behavior so we
will be having a review from your cost
accounting class
of cost accounting and information the
different classifications of cost like
direct and indirect cost
product and period cost you know that
already and then
cost behavior relevant range fixed and
variable cost
you know that as well and then
separation of mixed costs
which is your high low method the square
regression
and then other relevant cost concepts
however
our attack in this subject is how you
will be using it
in decision making or how will you
analyze it further
okay so this is level two of your cost
accounting that's why the prerequisite
for this object is your cost accounting
because you cannot step here without
completing your cross accounting
subject okay so that's pretty much how
it looks like and then we will also be
talking about absorption costing
variable costing systems so we have
absorption costing and variable costing
and then how do we prepare an income
statement under absorption costing
or the gap based income statement and
then your income statement under
variable costing in which we separate
your costs as to fix and variable cost
and then
how do we reconcile your net income
under absorption versus variable costing
and how variable costing will affect
your decision as a manager
and how variable costing is being used
in decision making
okay that's it and then our next lesson
is cvp analysis or the cost volume
profit analysis
uh what are the key concepts of cvp
analysis
when can you say that you have already
break even broke
broke even is that is that a correct
english for that okay break even
and then the target net income different
cvp terminologies
that you need to know and then how do
you apply cvp analysis as
applied to sales mix and the operating
leverage and degree of operating
leverage when you say break-even point
it's the level of sales or the number of
units that is required
by the entity to have them sold in order
for them to cover
all of their costs which is basically
net income is zero
you're not uh on the loss area but
you're not
also on the profit area you just you're
you're just
able to cover all of your costs so
that's basically your break-even point
so that is a pre-emption
of what we will be talking about in cvp
analysis
on a single product line and then if you
as you can see we also have sales mix
here it means
that we will be also talking about how
to do the cvp analysis in case you have
many
uh product lines okay and then
we also have activity based costing and
service cost allocation
you know this already in your cost
accounting but we will be focusing on
how to do it on a management level
okay so and also activity-based costing
and how do we compare it with
traditional costing
uh what entities or what services or
what manufacturing industries
basically what industry is more inclined
with abc
in what industry can be can relate more
with traditional costing and then
we'll also be going back to the
allocation of service costs
through direct method step method and
algebraic or reciprocal
method and then we'll also be talking
about standard costing and variance
analysis
for cost control as you can see the
title of the topic is you will be using
standard costing for cost control
in your cost accounting class you
already know how to compute the
variances
and you have been also introduced on how
to interpret those variable
and ah sorry those favorable and
unfavorable variances
now we'll be digging deeper into
analysis but sempre we will be going
back to standard costing and variance
analysis
also for materials and labor and your
overhead variances in one way two-way
three-way
and four-way now we will be going deeper
on price mix and yield variances
for those companies who are not a single
product line
okay or they have numerous products to
sell
okay so that's our application of
standard costing
for cost control so this is a
continuation
of your standard costing system in cost
accounting and control
and then we will be also talking about
budgeting business planning and
short-term budgetary system so what is
the difference between an operating
budget
and a financial budget and we will be
preparing budgeted financial statements
basically master budget preparation and
analysis
okay now this is short-term budgeting
because your
long-term or should we say capital
budgeting
that's already part of your financial
management class
okay so it's there already okay in your
financial management
uh here in strategic cost management
we'll be talking about the
more the much shorter one which is
short-term budgetary systems or
master budget and then we also have
differential cost analysis
um let's say for example you have a new
order
a special order or you want to decide if
you want to drop this product line
you want to drop this segment what will
be the effect in net income so basically
in differential cost analysis you need
to determine to be able to make a
decision what are the costs
relevant in the problem and what are the
cost that is irrelevant in what we are
talking about
okay relevant and irrelevant cost and
then non-routine decision making we have
make or buy
should i make this component or should
they just buy it
outside what's the best option for me or
accept or reject a special order i don't
have excess
capacity or i have excess capacity
should i accept or reject this special
order
okay or we also have shut down or
continue operations
that's very um inline
or relevant today in the covet 19
pandemic should i shut down or should i
continue
okay and then drop or retain a segment
or product line
i have a product line which is not
performing well
should i drop it or should i continue
selling it even though it's in a loss
okay and then sell as a sr process
further
should they sell it at this point or if
i process this further what will be the
effect okay and then
profit maximization and then replace or
retain and then qualitative and
quantitative analysis will that will be
applied in your decision making okay so
basically it's not just about the
differences in cost
if there are other factors that will
affect your decisions we'll be talking
about that as well okay and then we also
have responsibility accounting and
performance measures
so the concepts of responsibility
accounting
goal congruence and then how can we
describe
a decentralized entity as opposed to a
centralized
entity and then we also have
responsibility centers
call center revenue center profit center
and investment center and the different
kinds of performance
evaluation techniques that is
responsibility accounting and
performance measures
we also have transfer pricing and
pricing decisions so we'll be talking
about the principles
of transfer pricing and how to determine
the optimal transfer price
and then market price market transfer
pricing
cost and negotiation based transfer
pricing
excuse me and then the different factors
affecting pricing decisions and how do
you
use the different formulas using cost
plus
pricing and the application of different
markup percentages as applied in pricing
decisions basically how much
should i put the selling price in this
product okay and then we also have
balance score cards and non-financial
measures
in performance evaluation so we'll be
talking about balance scorecards
how to develop them and what are the
other factors
that might affect performance evaluation
that cannot be computed
through numbers basically they are
non-financial and that has been
our general orientation for strategic
cost management and i hope
that we will have a great semester
together
again please like share and subscribe to
search was accounting lessons ph
and hit the notification bell button to
alert you of the latest video lessons
for all of your questions comments and
suggestions please put them down in the
comment section below
and for webinar and speakership invites
please send me a message at
kevintroyetsuan1994
gmail.com this has been sirtua's
accounting lessons ph to god be all the
glory
honor and praise thank you and have a
great day
[Music]
[Applause]
[Music]
you