CHAPTER+TOPIC-WISE INDEX

(Strategic Cost & Performance Management)

Ch No Chapter Pg No
1 An introduction to strategic cost management 1-2
2 Modern business environment 3-4
3 Lean system and innovation 5-6
4 Specialist cost management techniques 7-8
5 Management of cost strategically for emerging 9-12
business models
6 Strategic revenue management 13-15
7 Strategic profit management 16-17
8 An introduction to strategic performance 18-20
management
9 Strategic performance measures in private 21-22
sector
10 Strategic performance measures in the non-for 22
profit organisation
11 Preparation of performance reports 23
12 Divisional transfer pricing 24
13 Standard costing 25

- By CA Vinay Kumar

Click for SCMPE Material

- By CA Avishi Gupta
Ch-1 SC & PM - Chapter+Topicwise INDEX
Ch Main Sub Concept ICAI SM
No heading heading Pg No Pg No Topic
1 B 1.3.3 22 1.22 Assessing and Identify Opportunities for Competitive Advantage
1 A Practical Insight 16 1.16 Automobile company - opportunities and threats
1 A Practical Insight 15 1.15 Automobile industry by identifying its strengths and weaknesses
1 C 1.1 35 1.35 Bargaining Power of Buyers
1 C 1.2 36 1.36 Bargaining Power of Suppliers
1 C 3 41 1.41 Basis of Competition
1 C 2.2 40 1.40 Basis of Segmentation
1 C 2.2.4 40 1.40 Behavioural segmentation
1 E 2.3 57 1.57 Business Ethics
1 B 2 24 1.24 Business Model
Can you list the elements that can contribute to customer value
1 B Do You Know 31 1.31 creation
1 E 2.1 55 1.55 Communication
1 C 5 42 1.42 Core-Competencies Analysis
1 A 2.1.3 16 1.16 Cost Driver Analysis ( Structural & Executional)
1 B 1.1.2 20 1.20 Cost Leadership
1 B 4.1.1 29 1.29 Customer Jobs
1 B 4.1 29 1.29 Customer Segment Profile
1 E 2.2 56 1.56 Decision-Making
1 C 2.2.2 40 1.40 Demographic segmentation
1 A Do You Know 13 1.13 Denison Organizational Culture Survey
1 B 1.3.2 22 1.22 Determine the Cost and Value of Activitie
1 B 1.1.1 20 1.20 Differentiation
1 C C 32 1.32 EXTERNAL ENVIRONMENT CONTEXT
1 B 4.2.3 31 1.31 Gain Creators
1 B 1 19 1.19 Gaining Competitive Advantage
1 B 4.1.3 30 1.30 Gains
1 C 2.2.5 40 1.40 Geographic segmentation
1 B 1.1 19 1.19 How can a strategist increase profitability?
1 C Do You Know 43 1.43 How can core competencies be exploited?
1 B 1.3 21 1.21 How to conduct a Value Chain Analysis?
1 B 3.1 27 1.27 How to draw Business Model Canvas
1 D Do You Know 50 1.50 Human resources technology
1 B 1.3.1 22 1.22 Identify Value Chain Activities
Industry Insight - Online Meeting Platform or a manufacturer &
1 B 3.2 28 1.28 trader of Razor and Blades
1 C 4 41 1.41 Industry Key Success Factors
1 D D 43 1.43 INFORMATION TECHNOLOGY THE STRATEGIC CONTEXT
Interconnectedness of Barriers (Exit Barriers and Entry Barriers) and
1 C Concept Insight 37 1.37 Profitability
1 B 1.3.3 23 1.23 Internal Cost Analysis
1 B 1.3.3 23 1.23 Internal Differentiation Analysis
1 D 1 45 1.45 IT/ IS and Porter’s Five Forces
1 D 2 48 1.48 IT/ IS and the Value Chain
1 A 2.2 17 1.17 Key tools of Strategic Cost Management and their nature

By CA Avishi Gupta By CA Vinay Kumar 1

Ch-1
Ch Main Sub Concept ICAI SM
No heading heading Pg No Pg No Topic
1 E 2 54 1.54 Management Accountant - In Role of Leader Who Drives Strategy
1 A A 2 1.2 MANAGING COST STRATEGICALLY
1 C 2.1 38 1.38 Market, Market Segment and Market Segmentation Analysis
1 A Do You Know 14 1.14 Mendelow’s Matrix
1 B B 19 1.19 ORGANISATIONAL CONTEXT
1 B 3 25 1.25 Osterwalder’s Business Model Canvas
1 B 4.2.2 31 1.31 Pain Relievers
1 B 4.1.2 30 1.30 Pains
1 C 1 34 1.34 Porter 5 Forces - Industry Profitability
1 A 2.1.1 7 1.7 Primary Activities-Value Chain Analysis
1 C 2.2.1 40 1.40 Product segmentation
1 B 4.2.1 31 1.31 Products and Services
1 C 2.2.3 40 1.40 Psychographic
1 B Concept Insight 30 1.30 Ranking jobs, pains, and gains is essential.
1 B 1.2 20 1.20 Relation between strategies and cost management Emphasis
1 C 1.5 36 1.36 Rivalry among Existing Firms
1 A 2.1.1 9 1.9 Secondary activities-Value Chain Analysis
1 A 2 5 1.5 Strategic Cost Management (SCM)
1 A 2.1.2 11 1.11 Strategic Position and Strategic Positioning Analysis
1 C 5.1 43 1.43 Test of core competency contains three parameters
The message in full, & then process message to construe the real
1 E Concept Insight 55 1.55 intent. Communication is more than just sending messages
1 E E 51 1.51 THE ROLE OF MANAGEMENT ACCOUNTANT AS A LEADER
1 E 1 52 1.52 The Transforming Role of the Management Accountant
1 C 1.4 36 1.36 Threat of New Entrants
1 C 1.3 36 1.36 Threat of Substitute Products or Services
1 A 1 3 1.3 Traditional Cost Management & Its Limitations
1 A 3 18 1.18 Traditional vs. Strategic Cost Management
1 A 2.1 5 1.5 Underneath Pillars of Strategic Cost Management
1 C 2 38 1.38 Understanding Customers and Markets
1 A 2.1.1 6 1.6 Value Chain Analysis
1 B 4 29 1.29 Value Proposition Canvas
1 B 4.2 30 1.30 Value Proposition Map
1 A Concept Insight 11 1.11 Value Shop Model
1 B 1.3.3 23 1.23 Vertical Linkage Analysis
What are the key questions that businesses are supposed to ask
while defining its value proposition or working on its value
1 B Do You Know 32 1.32 proposition canvas?
1 C Do You Know 39 1.39 What benefits Market Segmentation provides
1 C Do You Know 42 1.42 What can be a source of core competencies
1 A Do You Know 16 1.16 What tools are handy for conducting strategic position analysis?
1 D Do You Know 45 1.45 Why are firms supposed to have an IT/ IS strategy
1 E Do You Know 56 1.56 Why do business managers or leaders make irrational decisions?

By CA Avishi Gupta By CA Vinay Kumar 2

Ch-2
Ch Main Sub Concept ICAI SM
No heading heading Pg No Pg No Topic
2 D Practical Insight 89 2.30 Apple's Supply Chain Model
2 B 2.2 64 2.5 Appraisal Costs
2 D 2.2.4 87 2.28 Brand Strategy
2 D 5 90 2.31 Building a Resilient and Sustainable Supply Chain
2 C 2 72 2.13 Contributions in the field of TQM by Deming
2 B 2 63 2.4 Cost of Quality - Components
2 B 5 69 2.10 Cost of Quality - Conclusion
2 B 1 62 2.3 Cost of Quality - Views
2 B B 62 2.3 COST OF QUALITY (COQ)
2 E Example 92 2.33 Cost Savings initiatives and Gain Sharing arrangements at X Ltd
2 D 2.2.2 83 2.24 Customers Account Profitability (CAP)
2 D 2.2.2 84 2.25 Customers Lifetime Value (CLV)
2 D 2.2.2 83 2.24 Customers Relationship Management
2 C 2.1 72 2.13 Deming’s 14 Points Methodology
2 F 1 93 2.34 Downsizing
2 F Concept Insight 93 2.34 Downsizing is different from rightsizing
2 F F 93 2.34 DOWNSIZING, OUTSOURCING AND OFFSHORING
2 D 2.2 81 2.22 Downstream Supply Chain Management
2 B 2.4 65 2.6 External Failure Costs
2 A 1 62 2.3 From a Sellers’ Market to a Buyers’ Market
2 E E 91 2.32 GAIN SHARING ARRANGEMENTS
2 D D 76 2.16 GSCF framework - supply chain management processes
2 D Concept Insight 80 2.21 Information Technology– A Source of Competitive Advantage
2 B 2.3 64 2.5 Internal Failure Costs
2 F Concept Insight 95 2.36 It is possible to outsource work but not offshore it;
2 D 2.1 78 2.19 Management of Upstream Supplier Chain
2 A A 61 2.2 Modern Business Env.
2 F 3 94 2.35 Offshoring
2 B 3 67 2.8 Optimal COQ
2 F 2 94 2.35 Outsourcing
2 F Practical Insight 94 2.35 Outsourcing Practices
2 C 2.2 73 2.14 Plan–Do–Check–Act (PDCA) Cycle
2 B 2.1 63 2.4 Prevention Costs
Prevention, appraisal, and failure (PAF) -Steps of Application of PAF
2 B 4 69 2.10 Model
2 C Practical Insight 75 2.16 Quality Management Programs
2 D 2.2.1 81 2.22 Relationship Marketing
2 D 2.1.1 78 2.19 Relationship with Suppliers
2 D 3 88 2.29 Service Level Agreements (SLA)
2 C 1 71 2.12 Six C’s of TQM
2 D 4 88 2.29 Supply Chain - Benefits
Supply Chain Collaboration Between Wal-Mart and Procter &
2 D Practical Insight 88 2.29 Gamble
2 D D 75 2.16 SUPPLY CHAIN MANAGEMENT

By CA Avishi Gupta By CA Vinay Kumar 3

Ch-2
Ch Main Sub Concept ICAI SM
No heading heading Pg No Pg No Topic
2 D 2.1.2 79 2.20 Supply Chain Management - Use of Information Technology
Supply chain management processes are included in the GSCF
2 D D 76 2.16 framework
The use of Information Technology in Downstream Supply Chain
2 D 2.2.3 87 2.28 Management
2 C C 70 2.11 TOTAL QUALITY MANAGEMENT (TQM)
2 C 4 74 2.15 Total Quality Management- Criticisms
2 C 5 74 2.15 TQM - Conclusion
2 C 3 73 2.14 TQM - Implementation
2 D 1 76 2.17 Types of Supply Chain- Push and Pull
2 D 2 78 2.19 Upstream and Downstream Flow

By CA Avishi Gupta By CA Vinay Kumar 4

Ch-3
Ch Main Sub Concept ICAI SM
No heading heading Pg No Pg No Topic
3 A 3 117 3.21 5S
3 A 3.2 121 3.25 5S - Interlinking of 5S and Underlying Benefits
3 A 3.3 121 3.25 5S in Lean Product and Process Development
3 A 3.4 122 3.26 5S methodology as a core enabler of continual improvement
3 A 3.1 118 3.22 5S Phases
3 B Concept Insight 141 3.45 Business Process Re-engineering (BPR) and Process Innovation (PI)
3 A 5 129 3.33 Cellular Manufacturing
3 A 5.3 132 3.36 Cellular Manufacturing - Benefits and Costs
3 A 5.2 132 3.36 Cellular Manufacturing - Difficulties in Creating Flow
Cellular Manufacturing/ One Piece Flow Production System -
3 A 5.1 129 3.33 Implementation Process
3 A 6.2.2 138 3.42 DMADV
3 A 6.2.4 139 3.43 DMADV - Difference between DMAIC and DMADV
3 A 6.2.3 138 3.42 DMADV - Similarities between DMADV and DMAIC
DMADV - The steps of both the DMAIC and DMADV methodologies
3 A Do You Know 139 3.43 use a variety of common tools.
3 A 6.2.1 134 3.38 DMAIC
3 A Concept Insight 135 3.39 DMAIC - Application of DMAIC
3 A Concept Insight 131 3.35 Flow Shop or Assembly Line Workflow
3 A 1.1 102 3.6 JIT - Sequence of JIT Initiatives
3 A Practical Insight 109 3.13 JIT Practices
3 A 1.1 102 3.6 JIT Production
3 A 1.1 102 3.6 JIT Purchase
3 A 1.1 102 3.6 JIT Support
3 A 1.3 107 3.11 JIT System - Impact
3 A 1.4 107 3.11 JIT System- Back-flushing
3 A 1.2 106 3.10 JIT System- Features
3 A Do You Know 106 3.10 JIT system-Essential pre-requisites
3 A 1.2 106 3.10 JIT-Pros and Cons
3 A 1 101 3.5 Just-in-time (JIT)
Kaizen - How is the cost reduction target established (Agreed
3 A Do You Know 115 3.19 Target/ Goal)?
3 A 2 112 3.16 Kaizen Costing
3 A 2.1 113 3.17 Kaizen Costing Process
3 A Difference 114 3.18 Kaizen Costing’ different from ‘Standard Costing’
3 A Concept Insight 114 3.18 Kaizen Principles – The Core of Kaizen
3 A 1.1 104 3.8 Kanban Card
3 A A 100 3.4 Lean management - Benefits
Lean management - can you make a couple of points to advocate
3 A Test your understanding 101 3.5 lean management?
3 A A 100 3.4 Lean management - Issues addressed by lean management
Lean management - What are the wastes that a lean system will
3 A Do You Know 99 3.3 reduce?
3 A A 99 3.3 LEAN SYSTEM
3 A 5 129 3.33 One Piece Flow Production System

By CA Avishi Gupta By CA Vinay Kumar 5

Ch-3
Ch Main Sub Concept ICAI SM
No heading heading Pg No Pg No Topic
3 A 4.2 126 3.30 Overall Equipment Effectiveness (OEE)
3 B B 140 3.44 PROCESS INNOVATION
3 A Concept Insight 130 3.34 Rank Order Clustering Algorithm
3 A Do You Know 119 3.23 Set in Order - How to implement systematic arrangements?
3 A 3.1.2 119 3.23 Set in Order (Seiton)
3 A 3.1.2 120 3.24 Set-in-order supports lean thinking through realising the following
3 A 3.1.3 120 3.24 Shine (Seiso)
3 A 6 133 3.37 Six Sigma
3 A 6.2 134 3.38 Six Sigma - Implementation of Six Sigma
3 A 6.4 140 3.44 Six Sigma - Lean Six Sigma
3 A 6.3 139 3.43 Six Sigma - Limitations of Six Sigma
3 A 6.1 133 3.37 Six Sigma - Numerical Concept of Six Sigma
Six Sigma - Value of the Defect Percentage Under Various Sigma
3 A 6.1 134 3.38 Levels
3 A 3.1.1 118 3.22 Sort (Seiri)
3 A Do You Know 119 3.23 Sort (Seiri) - What benefits is sorting capable of generating?
Sort (Seiri) - While classifying material into different categories,
3 A Do You Know 118 3.22 following questions need to be answered
Sorting endorses lean thinking by helping in identifying the
3 A 3.1.1 119 3.23 following
3 A 3.1.4 120 3.24 Standardise (Seiketsu)
3 A 3.1.5 120 3.24 Sustain (Shitsuke)
3 A 4 124 3.28 Total Productive Maintenance (TPM)
3 A 4.3 128 3.32 TPM - Connection between TQM and TPM
3 A 4.2 125 3.29 TPM - Foundation & Pillars
3 A 4.1 124 3.28 TPM - How can TPM be introduced in the organization
3 A 4.2 126 3.30 TPM - Performance Measurement in TPM

By CA Avishi Gupta By CA Vinay Kumar 6

Ch-4
Ch Main Sub Concept ICAI SM
No heading heading Pg No Pg No Topic
‘Allocation of environmental cost is undoubtedly crucial for
4 F Test your understanding 188 4.45 obtaining correct information
4 F 4.1.4 187 4.44 Activity Based Costing (ABC)
4 B Practical Insight 153 4.10 Additive Approach
Can you list the factors which are capable to maximise a product's
4 C Test your understanding 173 4.30 return over its lifecycle?
Can you list the questions that a manufacturer must answer in
4 B Test your understanding 153 4.10 order to close the gap?
Can you see any connection between the BCG matrix and stages
4 C Test your understanding 171 4.28 of product life cycle?
4 A Concept Insight 146 4.3 Change management
Classification 2 – United States Environmental Protection Agency
4 F 3.2 183 4.40 (known as US EPA)
4 F 3.3 184 4.41 Classification 3 - Hansen and Mendoza
Classification 4 - The United Nations Division for Sustainable
4 F 3.4 185 4.42 Development
4 F 4.2.5 191 4.48 Consumables and Raw Materials
4 F 4.2 189 4.46 Controlling Environmental Costs
4 F Practical Insight 184 4.41 Corporate Image
4 A 1 145 4.2 Cost control
4 A 1.2 145 4.2 Cost Control - Prerequisite
4 A 1.1 145 4.2 Cost Control - Types of Targets
4 A 3 149 4.6 Cost Control and Cost Reduction - Difference
4 A A 145 4.2 COST CONTROL/ WASTE CONTROL AND COST REDUCTION
4 A 2 146 4.3 Cost Reduction
4 A 2.1 146 4.3 Cost Reduction - Scope
4 A 2.2 148 4.5 Cost Reduction - Tools and Techniques
4 F 7 192 4.49 EMA - Conclusion
4 F 6.2 192 4.49 EMA - Cons
4 F 2 182 4.39 EMA - Environmental Information
4 F 6.1 191 4.48 EMA - Pros
4 F 6 191 4.48 EMA - Pros and Cons of EMA
4 F 1 181 4.38 EMA - What is the EMA
4 F Test Your Understanding 181 4.38 EMA - Why is EMA gaining importance among organisations?
EMA (Green Accounting and Reporting) at Denmark to reap
4 F Practical Insight 191 4.48 benefits
EMA Methodology Related to the Management of Environmental
4 F 4 185 4.42 Cost
4 F Practical Insight 190 4.47 EMA Practices
4 F 4.2.3 190 4.47 Energy
4 F 3.1 182 4.39 Environmental Costs - Classification 1 - Generic Classification
4 F 3.1 183 4.40 Environmental Costs - Internal V/s External
4 F 3 182 4.39 Environmental Costs – Meaning and its Classifications
4 F F 180 4.37 ENVIRONMENTAL MANAGEMENT ACCOUNTING [EMA]
4 F 4.1.2 186 4.43 Flow Cost Accounting
4 D 2 176 4.33 Goldratt’s Five-Step Method for Improving Performance

By CA Avishi Gupta By CA Vinay Kumar 7

Ch-4
Ch Main Sub Concept ICAI SM
No heading heading Pg No Pg No Topic
4 F 4.1 185 4.42 Identification and Allocation of Environmental Costs
impact of external cost and also aware of the relation between
4 F Practical Insight 183 4.40 internal and external environment cost
4 F 4.1.1 186 4.43 Input-Output Analysis
4 C 1 170 4.27 Life Cycle Characteristics
4 C C 165 4.22 LIFE CYCLE COSTING
4 F 4.1.3 187 4.44 Life Cycle Costing
4 C 1 170 4.27 Life Cycle Strategies
4 F Practical Insight 187 4.44 Material Flow Cost Accounting
4 C 1 165 4.22 Product Life Cycle
4 C 2 172 4.29 Product Life Cycle - Characteristics
4 C 4 173 4.30 Product Life Cycle (PLC) - Uses
4 C 3 172 4.29 Product Life Cycle Costing - Benefits
4 C 1.1 166 4.23 Product Life Cycle Stage I: Introduction Stage
4 C 1.2 167 4.24 Product Life Cycle Stage II: Growth Stage
4 C 1.3 168 4.25 Product Life Cycle Stage III: Maturity Stage
4 C 1.4 169 4.26 Product Life Cycle Stage IV: Decline Stage
4 F 5 191 4.48 Role of EMA in Product/ Process Related Decision Making
4 F Concept Insight 186 4.43 Selection of techniques
State what standardization of the components and the manners in
4 A Test your understanding 148 4.5 which it will work out to reduce the cost
4 B B 149 4.6 TARGET COSTING
4 B 4.2 155 4.12 Target Costing - Cons
4 B 1 150 4.7 Target Costing - Definition, Features, and Scope
4 B 5 157 4.14 Target Costing - Impact on Profitability
4 B 6 158 4.15 Target Costing - Most Useful Situations
4 B 3 154 4.11 Target Costing - Principles
4 B 4.1 154 4.11 Target Costing - Pros
4 B 4 154 4.11 Target Costing - Pros and Cons
4 B 2 152 4.9 Target Costing - Step
4 B 7 159 4.16 Target Costing System - Components
4 D D 175 4.32 THEORY OF CONSTRAINTS
4 D 1 175 4.32 Theory of Constraints - Operational Measures
4 E Practical Insight 180 4.37 Theory of Constraints Practices
4 E E 177 4.34 THROUGHPUT ACCOUNTING
4 E 1 179 4.36 Throughput Accounting - Advantages and Disadvantages
4 E 2 179 4.36 Throughput Accounting - Conclusion
4 F 4.2.4 191 4.48 Transport and Travel
4 B 7 159 4.16 Value Analysis
4 B 7 159 4.16 Value Engineering
4 F 4.2.1 190 4.47 Waste
4 F 4.2.2 190 4.47 Water

By CA Avishi Gupta By CA Vinay Kumar 8

Ch-5
Ch Main Sub Concept ICAI SM
No heading heading Pg No Pg No Topic
5 A 1.7 201 5.7 3D printing
A change in business model on account of technological
5 A Concept Insight 203 5.9 advancements can be classified
5 B 1.6 226 5.32 Access-Over-Ownership Model
Adesegun Oyedele extended the list - emerging market
5 B 3.3 232 5.38 characteristics
5 A 5 209 5.15 Advanced Manufacturing
5 A 5 210 5.16 Advanced manufacturing - Explanation of techniques
Advanced Manufacturing - Meredith and Hill have classified
5 A 5 209 5.15 advanced manufacturing technologies
Advanced Manufacturing - What is the aim of advanced
manufacturing, and how does it impact the cost and value of the
5 A Do You Know? 209 5.15 product that an organisation offers?
5 B 1.1.1 224 5.30 Advertising (also known as the Hidden Revenue Model)
5 A 7 213 5.19 Agile Organisations
5 A 7.2 214 5.20 Agile Organization - Characteristics
5 A 11.2.3 221 5.27 AI and Machine Learning that goes beyond data analytics
5 B 2.2 229 5.35 Approaches for Developing A Sustainable Business Model
5 A 1.3 199 5.5 Artificial intelligence (AI)
5 A 1.4.4 200 5.6 Artificial intelligence (AI) automation
5 A 1.9 202 5.8 Augmented Reality
5 A 1.4 200 5.6 Automation
5 A 1.6 201 5.7 Autonomous vehicles
5 A 1.4.1 200 5.6 Basic automation
5 C 2.1.3 234 5.40 Be an indispensable integrator
5 C 2.1.2 234 5.40 Be the locus of USP
5 A 1.11 203 5.9 Blockchain
5 C 4.1.3 236 5.42 Blocking the path or creating hurdle on the road
5 A 2 203 5.9 Business Ecosystems
5 B B 222 5.28 BUSINESS MODELS
5 B 1.4.1 226 5.32 Business to Business (B2B)
5 B 1.4.2 226 5.32 Business to Customer (B2C)
Can you list the benefits that the use of Supply Chain Partnership
5 A Test Your Understanding 222 5.28 Software brings to an organisation
5 B Concept Insight 230 5.36 Caution regarding the sustainable business model
5 A A 196 5.2 CHANGING BUSINESS ENVIRONMENT
5 B 2.2.4 230 5.36 Closed-loop production
5 A 1.5 200 5.6 Cloud
5 A Do You Know? 221 5.27 Collaboration
Comparing Design Thinking vis-à-vis Lean Start-up, Agile, and Six
5 A Concept Insight 215 5.21 Sigma
5 A 11.2.2 221 5.27 Configurable workflows
5 C 4.2 237 5.43 Considerations while Selecting/ Crafting the Strategy

By CA Avishi Gupta By CA Vinay Kumar 9

Ch-5
Ch Main Sub Concept ICAI SM
No heading heading Pg No Pg No Topic
5 A 8.2.4 218 5.24 Consumer and innovation
5 C 4.1.4 236 5.42 Counter disruption
5 B 1.1.2 224 5.30 Cross-subsidisation (also known as the razorblade business model)
5 B 2.2.5 230 5.36 Crowdfunding
5 A 8.2.2 217 5.23 Culture and people
5 B 1.4.4 226 5.32 Customer to Business (C2B)
5 B 1.4.3 226 5.32 Customer to Customer (C2C)
5 A 3 206 5.12 D’Aveni’s 7S framework
5 B 1.4 225 5.31 Digital Platform Model (E-Commerce Model)
5 A 1 197 5.3 Digital Technologies
5 A 1.8 202 5.8 Digital Twin
5 A 4.2 207 5.13 Disruption
Disruptive Innovation - What are the components of Disruptive
5 A Do You Know? 208 5.14 Innovation?
5 A Concept Insight 207 5.13 Disruptive Innovation is a bit different from Sustaining Innovation
Emerging Markets -Importance of Emerging Markets and Strings
5 B 3.2 231 5.37 attached
5 B 3.1 231 5.37 Emerging Markets/ Economies
Emerging National Markets - Characteristic of Emerging National
5 B 3.3 231 5.37 Markets relevant to the Business Model
5 A 11.2.5 221 5.27 End-to-end visibility
5 C 2.2.2 235 5.41 Enhanced accountability
5 A 11.2 221 5.27 Essentials of seamless Supply Chain Collaboration
5 B 1.8 227 5.33 Experience Model
5 A 8.2.5 218 5.24 Financing
5 C 2.2.1 234 5.40 Flexibility and co-operations
Focus on Series of Short-Term Advantages in the Case of
5 C 3 235 5.41 Hyper-Competition
5 C 2.2.3 235 5.41 Free (seamless) flow of information
5 B 1.1 223 5.29 Free Model
5 B 1.3 225 5.31 Freemium Model
5 B 2.2.8 230 5.36 Gift economy
How does a changing business eco-system impact strategies
5 A Do You Know? 204 5.10 towards competitive advantage?
How does intrapreneurship influence the management of Cost
5 A Do You Know? 219 5.25 Strategically?
How does the business ecosystem influence cost, value, and
5 A Do You Know? 205 5.11 performance?
5 A 3 206 5.12 Hyper Competition
5 B 1 223 5.29 Hyper Disruptive Business Models
Hyper-competition - How does hyper-competition influence cost,
5 A Do You Know? 206 5.12 value & performance & reflect in strategies?
5 A 3.2 206 5.12 Hyper-competition - Response (Strategy) for Hyper-competition
5 A 3.1 206 5.12 Hypercompetitive Market - Characteristics
5 B 1.5 226 5.32 Hypermarket Model
5 A 11.2.4 221 5.27 In-Context Messaging

By CA Avishi Gupta By CA Vinay Kumar 10

Ch-5
Ch Main Sub Concept ICAI SM
No heading heading Pg No Pg No Topic
5 A Do You Know? 219 5.25 Incubator is same as startup hub but different from accelerator
5 A Do You Know? 212 5.18 Influence of Lean start-up on Cost and Efficiency
5 A 10 219 5.25 Innovation Hubs and Incubators
Innovation is the Core of the Design Thinking, Lean Start-up and
5 A Concept Insight 214 5.20 Agile
5 A 1.4.3 200 5.6 Integration automation
5 A 1.1 198 5.4 Internet of Things (IoT)
5 A 9 218 5.24 Intrapreneurship
5 C 4.1.2 236 5.42 Invest or counter invest
5 B 3.3 232 5.38 Jagdish N. Sheth - emerging market characteristics
5 A 6 211 5.16 Lean Start-up
5 A 6.2 212 5.18 Lean Start-up Methodology
5 C 2.1.1 234 5.40 Make the best out of customer needs, especially the changing ones
Meredith and Hill have classified advanced manufacturing
5 A 5 209 5.15 technologies
Migration strategies from specific application to the cloud – Efforts
5 A Practical Insight 201 5.7 and Opportunities
5 C 4.1.1 236 5.42 Milking as cash cow
5 A 1.1 202 5.8 Mobile Internet
5 B 3 231 5.37 Models Relevant to Emerging National Markets
5 B 2 228 5.34 Models Relevant to Sustainability
5 B 2.2.9 230 5.36 New manufacturing paradigm
5 B 1.9 227 5.33 On Demand Model
5 B 2.2.2 229 5.35 Open innovation
5 B 1.1.3 224 5.30 Open Source (also referred to as the Free Access or Gift Model)
5 A 8.2.3 217 5.23 Operating model
5 A 8.2.1 217 5.23 Organization structure
5 B 2.2.3 230 5.36 Peer-to-peer innovation
5 A 8.1.1 216 5.22 Pre-start-up stage
5 A 1.4.2 200 5.6 Process automation
5 B 2.2.1 229 5.35 Product service systems
5 B 1.1.4 224 5.30 Promotion
5 A 11.2.1 221 5.27 Real-time data sharing
5 C 4.1.5 237 5.43 Restrict presence and shift focus on core
5 A 1.2 199 5.5 Robotics
5 A 8.1.3 216 5.22 Scale-up
5 B 1.7 227 5.33 Service Ecosystem Model
5 C 2.2.4 235 5.41 Shared economy (clustering of firms) → shared resources
5 B 2.2.6 230 5.36 Sharing economy
5 B 2.2.7 230 5.36 Social enterprises and benefit corporations
Stages a start-up goes through while transforming into Unicorn
5 A 8.1 216 5.22 (and then into Incumbent)
5 A 8.1.2 216 5.22 Start-up stage
5 A 8.2 217 5.23 Start-Up vis-à-vis Incumbents - Difference
5 A 8 215 5.21 Start-ups vs. Incumbents

By CA Avishi Gupta By CA Vinay Kumar 11

Ch-5
Ch Main Sub Concept ICAI SM
No heading heading Pg No Pg No Topic
Strategic Aspects of Creating Ecosystem (entering into partnerships
5 C 2.2 234 5.40 and alliances)
5 C 4 236 5.42 Strategic Response to Transformations and Disruptions
5 C C 233 5.38 STRATEGIC RESPONSES TO NEW BUSINESS MODELS
5 C 4.1 236 5.42 Strategies
Strategies Pertaining to Digital Technologies and the Advancement
5 C 1 233 5.38 Thereof
5 C 2.1 234 5.40 Strategies to Capture Value
5 B 1.2 225 5.31 Subscription Model
5 A 11.1 220 5.26 Supply Chain Innovations - Approaches
5 A 11 220 5.26 Supply Chain Partnerships
5 B 2.1 228 5.34 Sustainability Aspects and Business Model
5 B Concept Insight 229 5.35 Sustainable Development Goals
5 C 2.2.5 235 5.41 Think of the economics of scope apart from scale
Tima Bansal suggests systems theory identifies 5 elements for
5 B 2.2 229 5.35 sustainable business model
5 A 7.1 213 5.19 Traditional vs. Agile Organisation
5 A 6.1 211 5.17 Traditional vs. Lean Start-up
5 A 4.1 207 5.13 Transformation
5 A 4 207 5.13 Transformations and Disruptions
Value-Based Strategy (Value Capture Model) in a Business
5 C 2 234 5.40 Ecosystem
What is the UN observation on the advancement of digital
5 A Do You Know? 198 5.4 technologies1?
5 C 4.1.6 237 5.43 Withdraw

By CA Avishi Gupta By CA Vinay Kumar 12

Ch-6
Ch Main Sub Concept ICAI SM
No heading heading Pg No Pg No Topic
6 A 1 243 6.4 Activity Based CVP Analysis
6 B 2 258 6.19 Applications of CVP Analysis and Cost Concepts
6 A 1 243 6.4 Batch-level activities
6 F 7.1.1(3) 299 6.60 Bid Rigging
6 F 2.2 289 6.50 Competition-Based Pricing Method
6 F Concept Insight 297 6.58 Competitive Law Aspects Pertaining to Pricing Below Cost
6 F 2.1 286 6.47 Cost-Based Pricing Method
6 A Do You Know? 244 6.5 CVP - How is CVP analysis with Activity Based Analysis relevant?
6 A A 242 6.3 CVP ANALYSIS
6 A 3 252 6.13 CVP Analysis in Just in Time Environment
6 A 2 249 6.10 CVP Analysis in Service and Non-Profit Organisations
6 B Concept Insight 267 6.28 Dangers of Concentrating Excessively on a Short-Run Time Horizon
6 B Concept Insight 265 6.26 Decision - Keep or Drop?
6 B Do You Know? 253 6.14 Decision Making involves Ethical Considerations
6 B Do You Know? 254 6.15 Decision Making involves Non-Financial Considerations
6 B 1 256 6.16 Decision Making Model
6 G 1.2 302 6.63 Discounted Pricing - Price Discounts and Allowances
6 F 7 297 6.58 Ethical and Non-Financial Considerations
6 F 7.1 297 6.58 Ethical Considerations
6 F 7.1.1 298 6.59 Ethical pricing issues that hurt businesses
6 A 1 244 6.5 Facilities level activities
6 G 1.1 301 6.62 Geographic Pricing
6 F 2.2.1 289 6.50 Going Rate Pricing
Higher the level of threshold, performance, and excitement
6 H Concept Insight 306 6.67 attribute, higher the customer’s willingness to pa
6 F 4.1 295 6.56 Hyper Disruptive Business Models
6 H H 304 6.65 KANO’S PERFORMANCE ATTRIBUTES
6 B 2.4 264 6.25 Keep or Drop Decisions
6 F 2.1.1 286 6.47 Mark-up pricing
6 B 2.3 263 6.24 Minimum Pricing Decisions
6 F 4.3 295 6.56 Models Relevant to Emerging National Markets
6 F 4.2 295 6.56 Models Relevant to Sustainability
6 E 3.3 278 6.39 Monopolistic Competition
6 E 3.2 278 6.39 Monopoly
6 F 7.2 299 6.60 Non-Financial Considerations
6 E Concept Insight 279 6.40 Non-Price Strategies
6 F 2.4 290 6.51 Objective Value
6 E Concept Insight 279 6.40 Oligopolies - Pricing Strategies
6 E 3.4 278 6.39 Oligopoly
6 B Test Your Understanding 259 6.20 Outsource - When should a company outsource?
6 B 2.1 258 6.18 Outsourcing Decision
6 F 1.2 284 6.45 Penetration Pricing
6 F 2.4 291 6.52 Perceived Value
6 E 3.1 277 6.38 Perfect Competition

By CA Avishi Gupta By CA Vinay Kumar 13

Ch-6
Ch Main Sub Concept ICAI SM
No heading heading Pg No Pg No Topic
6 C Concept Insight 272 6.33 Policy vs. Strategy
6 G 1 300 6.61 Price Adjustment Strategies
6 E 4.1 280 6.41 Price Customization
6 F 7.1.1(4) 299 6.60 Price Discrimination
6 G 1.4 303 6.64 Price Discrimination
6 F 7.1.1(1) 298 6.59 Price Fixing (Collusion or cartelization)
6 E 4.2 280 6.41 Price Sensitivity
Price Sensitivity - Nagle has identified nine factors that contribute
6 E 4.2 280 6.41 to price sensitivity
6 F 7.1.1(2) 299 6.60 Price Skimming
6 F F 282 6.43 PRICING
6 G Concept Insight 301 6.62 Pricing and Incoterms in the context of International Trade
6 F 6.2 297 6.58 Pricing Below Marginal Cost
6 F 6.1 296 6.57 Pricing decision in periods of Recession
6 F 6 296 6.57 Pricing Decision in Special Circumstances
6 D D 273 6.34 PRICING DECISIONS
6 D 1 274 6.35 Pricing Decisions - Factors Influencing Pricing Decisions
6 D Concept Insight 273 6.34 Pricing Decisions from the lens of the Marketing Mix
6 F 4 295 6.56 Pricing in Case of Emerging Business Models
6 F 2 286 6.47 Pricing Methods for Existing Finished Products
6 E Concept Insight 282 6.43 Pricing Objectives
6 F 1 282 6.43 Pricing of New Products
6 F 3 294 6.55 Pricing of Services
6 C C 272 6.33 PRICING POLICY
6 G G 300 6.61 PRICING STRATEGIES
6 E 1 274 6.35 Pricing Theory
6 E 3 277 6.38 Pricing Under Different Market Structure
6 F Do You Know? 292 6.53 Product life cycle has a strong bearing on the price of the product1
6 B 2.6 269 6.30 Product Mix Decision
6 G 1.5 303 6.64 Product Mix Pricing
6 E 4 279 6.40 Product Pricing - Principles
6 E E 274 6.35 PRODUCT PRICING THEORY & PRINCIPLES
6 A 1 244 6.5 Product sustaining activities
6 E 2 276 6.37 Profit Maximisation Model
6 G 1.3 302 6.63 Promotional Pricing
6 F 2.3 290 6.51 Psychological Pricing
6 B B 252 6.13 RELEVANT COST CONCEPTS (In short term decision)
6 F Concept Insight 283 6.44 Revolutionary, Evolutionary and Me-Too
6 G Test Your Understanding 304 6.65 RPA - Are incentives, discounts, or surcharges justified?
6 F 2.2.2 290 6.51 Sealed Bid-Pricing
6 B 2.2 261 6.22 Sell or Process Further
6 F 5 296 6.57 Sensitivity Analysis in Pricing Decisions
6 F 1.1 284 6.45 Skimming Pricing
6 B 2.5 266 6.27 Special Order Decisions

By CA Avishi Gupta By CA Vinay Kumar 14

Ch-6
Ch Main Sub Concept ICAI SM
No heading heading Pg No Pg No Topic
6 E 5 281 6.42 Structured Approach to Pricing Decisions (steps)
6 F 7.1.1(5) 299 6.60 Super Pricing for article with high perceived value
6 F 2.1.2 287 6.48 Target Rate of return
6 F 2.4 290 6.51 True Economic Value (TEV)
6 F Practical Insight 298 6.59 Unethical Pricing of cameras and ventilators during the pandemic
6 A 1 243 6.4 Unit level (output) activities
6 F 2.4 290 6.51 Value- Based Pricing Method
6 F Concept Insight 298 6.59 Vertical price fixing
What framework should be considered by a firm to create value for
6 F Test Your Understanding 292 6.53 its customers?

By CA Avishi Gupta By CA Vinay Kumar 15

Ch-7
Ch Main Sub Concept ICAI SM
No heading heading Pg No Pg No Topic
7 C 1 328 7.16 ABC in Advanced Manufacturing Environment
ABC in Advanced Manufacturing Environment - Global
7 C 1 328 7.16 Competitiveness:
ABC in Advanced Manufacturing Environment - Workplace
7 C 1 328 7.16 Automation
7 C C 328 7.16 ABC, ABM, ABB
7 C 4 344 7.32 ABC: A Decision - Making Tool
7 C 2.5 339 7.27 ABCM - Benefits of Activity Based Cost Management
7 C 2.3.2 337 7.25 ABM - Activity Based Budgeting (ABB)
7 C 2.3 337 7.25 ABM - Business Applications of ABM
7 C 2.3.1 337 7.25 ABM - Cost Reduction
7 C 2.6 339 7.27 ABM - Differences between ABC and ABM
7 C 2.4 339 7.27 ABM - Implementing ABM
7 C 2.1.2 330 7.18 Activity Analysis
7 C 3 340 7.28 Activity Based Budgeting (ABB)
7 C 2 329 7.17 Activity Based Cost Management (ABM)
Activity Based Cost Management (ABM) - Designing and
7 C 2.1 330 7.18 Implementing ABM
7 C 3 341 7.29 Activity Flexible Budgeting
7 C 2.3.4 338 7.26 Benchmarking
7 C 2.3.3 338 7.26 Business Process Re-engineering
7 C 2.1.1 330 7.18 Cost Driver Analysis
7 B 2 325 7.13 Customer Profitability Analysis
Customer Profitability Analysis - Benefits of Customer Profitability
7 B 2.1 326 7.14 Analysis
7 C 2.2.2 334 7.22 Customer Response Time
7 C 2.2.2 334 7.22 Cycle Time
7 C 2.2.2 334 7.22 Delivery Time
7 B 1 319 7.7 Direct Product Profitability (DPP)
7 B 1.1 320 7.8 Direct Product Profitability (DPP) - Benefits of DPP
7 B 1.2 320 7.8 Direct Product Profitability Statement
7 A 1 315 7.3 Growth Component
7 A 1.2 315 7.3 Growth Component - Cost Effect
7 A 1.1 315 7.3 Growth Component - Revenue Effect
Manufacturing Cycle Efficiency (MCE)- Application of MCE in
7 C Concept Insight 335 7.23 reducing Non- Value- Added Activities
7 C 2.2.2 333 7.21 Manufacturing Cycle Time (MCT)
7 C 2.2.2 333 7.21 Manufacturing/ Process Time
7 C 2.2.2 332 7.20 Non-Value-Added Activities
7 D D 346 7.34 PARETO ANALYSIS
7 D 3.3 350 7.38 Pareto Analysis - ABC Analysis- Stock Control
7 D 3.4 351 7.39 Pareto Analysis - Application in Activity Based Costing
7 D 3 349 7.37 Pareto Analysis - Applications
7 D 3.2 350 7.38 Pareto Analysis - Customer Profitability Analysis
7 D 3.1 349 7.37 Pareto Analysis - Pricing of a Product

By CA Avishi Gupta By CA Vinay Kumar 16

Ch-7
Ch Main Sub Concept ICAI SM
No heading heading Pg No Pg No Topic
7 D 2 349 7.37 Pareto Analysis - Pros and Cons
7 D 3.5 351 7.39 Pareto Analysis - Quality Control
7 D 1 347 7.35 Pareto Analysis as Management Tool
7 C 2.1.3 330 7.18 Performance Analysis
7 C 2.3.5 338 7.26 Performance Measurement
7 A 2 316 7.4 Price Recovery Component
7 A 2.2 316 7.4 Price Recovery Component - Cost Effect
7 A 2.1 316 7.4 Price Recovery Component - Revenue Effect
7 A 3 316 7.4 Productivity Component
7 B B 319 7.7 PROFITABILITY ANALYSIS THROUGH ACTIVITY BASED COSTING
7 C 2.2.2 333 7.21 Receipt Time
7 A 4 317 7.5 Reconciliation of Operating Profit
7 A A 314 7.2 STRATEGIC PROFITABILITY ANALYSIS
7 C 2.2 331 7.19 Value Added (VA) Activities / Non-Value Added (NVA) Activities
7 C 2.2.1 331 7.19 Value-Added Activities

By CA Avishi Gupta By CA Vinay Kumar 17

Ch-8
Ch Main Sub Concept ICAI SM
No heading heading Pg No Pg No Topic
8 E 1 384 8.31 Accountability
8 E 1.1 384 8.31 Accountability and Accounting
8 E 1.2 384 8.31 Accountability and Control
8 F 4.1.1 387 8.34 Altman Z score (1968)
8 F Practical Insight 388 8.35 Altman Z score (1968)
Altman Z Score for Private Firms, Non-manufacturers, and
8 F 4.1.5 390 8.37 Emerging Markets (1983)
8 F 4.2.1 392 8.39 Argenti's A score
8 F 4.1.2 389 8.36 Beaver’s Univariate Model (1966)
8 F Practical Insight 389 8.36 Beaver’s Univariate Model (1966)
8 E E 384 8.31 BEHAVIOURAL ASPECTS
Behavioural aspects are one of the 7 human attributes that the life
8 E Do You Know? 384 8.31 wheel encompasses
8 E 1.2.1 384 8.31 Behavioural Control
Business integration can overcome the problem of sub-optimisation
8 B Do You Know? 360 8.7 as well.
8 B 3.2.1 363 8.10 Classification of value-added and non-value-added activity
Complex business structure - virtual organisation is also
8 D Do You Know? 381 8.28 considered as CBS
8 D 1 380 8.27 Complex business structure - What is CBS
8 D 2.4 383 8.30 Complex Business Structures - In Case of Complex Supply Chain
8 D 2.2 382 8.29 Complex Business Structures - In Case of Joint Venture
8 D 2.3 382 8.29 Complex Business Structures - In Case of Multinationals
8 D 2.1 382 8.29 Complex Business Structures - In Case of Strategic Alliance
8 D 2.5 383 8.30 Complex Business Structures - In Case of Virtual Organisations
8 D 2 381 8.28 Complex Business Structures - Problems and Solutions thereto
8 B 3.2.4 364 8.11 Customer’s Perspective
8 B 3.2.2 364 8.11 Decision on Outsourcing
8 B 3.1 361 8.8 Description of Activities and Margin
8 E Do You Know? 385 8.32 Ethical behaviour supports performance management.
8 B Do You Know? 373 8.20 Factors that influence the organisational structure
8 F 4.1.7 392 8.39 H Score Model
8 E 1.1.1 384 8.31 Hard Accountability
How does an organisation use Value Chain to gain and sustain
8 B 3.2 363 8.10 competitive advantage (desired performance)?
How does the fast-food chain, McDonalds leverages the 7S
8 B Practical Insight 375 8.22 framework?
8 D Do You Know? 382 8.29 How is a Joint Venture different from a Strategic Alliance?
Importance of Interlinking of Performance Management and
Strategy Multifolds under Modern and Dynamic Business
8 A 4 359 8.6 Environment
8 C 2 379 8.26 Influence of Culture
8 C 3 380 8.27 Influence of Strategy
8 C 1 379 8.26 Influence of Structure
Information Technology breakthroughs can be game changer for
8 D Do You Know? 383 8.30 complex business structure

By CA Avishi Gupta By CA Vinay Kumar 18

Ch-8
Ch Main Sub Concept ICAI SM
No heading heading Pg No Pg No Topic
8 A 3 357 8.4 Interlinking of Performance Management and Strategy
8 B 3.3 365 8.12 Linkage of Value Chain Analysis and Performance Management
Management Styles & Culture Modify Behaviour, therefore
8 E 3 385 8.32 Influence Performance
8 B 4 366 8.13 McKinsey’s 7S
8 B Do You Know? 366 8.13 McKinsey’s 7S
McKinsey’s 7S - Change Management and Gap Analysis run parallel
8 B Do You Know? 377 8.24 with the 7S framework
McKinsey’s 7S - Effective use of the 7S Framework for Business
8 B 4.2 376 8.23 Integration
McKinsey’s 7S - Elements - Staff - Why is the integration of Staff (HR
8 B Do You Know? 374 8.21 as a function) into strategy essential?
8 B 4.1 367 8.14 McKinsey’s 7S - Elements of 7S
8 B 4.1.7 374 8.21 McKinsey’s 7S - Elements of 7S - Shared Values
8 B 4.1.6 374 8.21 McKinsey’s 7S - Elements of 7S - Skills
8 B 4.1.5 374 8.21 McKinsey’s 7S - Elements of 7S - Staff
8 B 4.1.1 367 8.14 McKinsey’s 7S - Elements of 7S - Strategy
8 B 4.1.2 367 8.14 McKinsey’s 7S - Elements of 7S - Structure
8 B 4.1.4 373 8.20 McKinsey’s 7S - Elements of 7S - Style
8 B 4.1.3 373 8.20 McKinsey’s 7S - Elements of 7S - Systems
McKinsey’s 7S - Organisation as a whole needs to answer the
8 B Concept Insight 376 8.23 following questions pertaining to each of S
8 B 4.3 377 8.24 McKinsey’s 7S Model and Performance Management
8 B B 369 8.16 Organisational Structure - Types of
8 F 4.1.6 391 8.38 Performance Analysis Score (PAS or Tafflers’ PAS)
8 A A 356 8.3 PERFORMANCE MANAGEMENT AND ITS LINK TO STRATEGY
8 E 2 385 8.32 Performance Measures (CSFs & KPIs thereto) Act as Stiumli
8 E 1.2.2 384 8.31 Personnel and Cultural Control
8 F 1 386 8.33 Predicting and Preventing Corporate Culture - Introduction
Predicting and Preventing Corporate Culture - Need for Predicting
8 F 3 387 8.34 Corporate Failure
Predicting and Preventing Corporate Culture - Why do companies
8 F 2 386 8.33 fail?
8 F F 386 8.33 PREDICTING AND PREVENTING CORPORATE FAILURE
8 F 4 387 8.34 Predicting Corporate Failure
8 F 4.3 394 8.41 Preventing Corporate Failure
8 B 3.1.1 361 8.8 Primary Activities
8 B Practical Insight 361 8.8 Primary activities at Apple Inc
8 F 4.2 392 8.39 Qualitative Models
8 F 4.1 387 8.34 Quantitative Models
8 E 1.2.3 385 8.32 Reporting Control
8 B 2 359 8.6 Role of Performance management - Business Integration
8 B 1 359 8.6 Role of Performance management - Introduction
ROLE OF PERFORMANCE MANAGEMENT IN BUSINESS
INTEGRATION USING MODELS SUCH AS VALUE CHAIN AND
8 B B 359 8.6 MCKINSEY’S 7S

By CA Avishi Gupta By CA Vinay Kumar 19

Ch-8
Ch Main Sub Concept ICAI SM
No heading heading Pg No Pg No Topic
Shortcomings of using a qualitative model to predict corporate
8 F 4.2.2 394 8.41 failure
Shortcomings of using Quantitative Models to predict Corporate
8 F 4.1.8 392 8.39 Failure
8 E 1.1.2 384 8.31 Soft Accountability
STRATEGIC PERFORMANCE ISSUES IN COMPLEX BUSINESS
8 D D 380 8.27 STRUCTURES
8 B 3.1.2 362 8.9 Support Activities (also referred as to Secondary Activities)
Symbols are virtual representation of organisation including logos,
8 B Do You Know? 376 8.23 titles, dress code, types of language, and terminology
8 F 4.1.3 390 8.37 Taffler and Tishaw’s Model (1977)
THE EFFECT OF ORGANIZATION STRUCTURE, CULTURE, AND
8 C C 378 8.25 STRATEGY ON PERFORMANCE MEASUREMENT
8 F 4.1.4 390 8.37 The ZETA Model (1977)
8 B 3.2.5 364 8.11 To look at Big Picture, ‘Value System’ (Wider Integration)
8 B 3.2.3 364 8.11 Value Chain can make comparison easy9
8 B 3 360 8.7 Value Chain/ Value Chain Analysis
What are the underlying principles of organising (defining
8 B Do You Know? 368 8.15 organisational structure)?
8 E Do You Know? 385 8.32 What gets measured, gets done.
8 A 2 356 8.3 What is Performance Management?
8 A 1 356 8.3 What is Strategy?
Whether is the Z-score Model reliable for predicting corporate
8 F Practical Insight 389 8.36 failure?
8 B Do You Know? 365 8.12 Why is it necessary to consider the big picture (Value System)?

By CA Avishi Gupta By CA Vinay Kumar 20

Ch-9
Ch Main Sub Concept ICAI SM
No heading heading Pg No Pg No Topic
9 C 3.1 416 9.21 Balanced Scorecard - linkage between performance measures
Balanced Scorecard - Responsibility to devise and implement a
9 C Concept Insight 419 9.24 Balanced Scorecard
Balanced Scorecard - The following figure summarizes the ideas of a
9 C 3.1.3 420 9.25 Balanced Scorecard
Balanced Scorecard - Why does Balanced Scorecard fail to provide
9 C 3.1.2 419 9.24 the desired results?
9 C Concept Insight 425 9.30 Balanced Scorecard vs. Performance Pyramid
9 C 3.3 428 9.33 Building Block Model - Dimensions
Building Block Model - Link between achievement of corporate
9 C 3.3.1 430 9.35 strategy & management of human resource
Building Block Model - link between achievement of corporate
9 C 3.3 428 9.33 strategy & management of human resources
9 C 3.3 429 9.34 Building Block Model - Results
9 C 3.3 429 9.34 Building Block Model - Rewards
9 C 3.3 429 9.34 Building Block Model - Standards
9 C Practical Insight 429 9.34 Building Block Model Practices
9 B B 399 9.4 Critical Success Factors (CSFs)
9 C 2.5 409 9.14 Earnings Per Share (EPS)
9 C 2.6 410 9.15 Economic Value Added (EVA)
9 C 2.6.1 411 9.16 Economic Value Added (EVA) - Calculation
9 C 2.6.2 411 9.16 Economic Value Added (EVA) - Limitations
Economic Value Added (EVA) - May you enlist the instance when
9 C Test your understanding 412 9.17 will EVA increase?
9 C 2 403 9.8 Financial Performance Measures
9 C 2.1 403 9.8 Gross Profit
9 B B 400 9.5 How to identify CSFs and KPIs
INTERLINKING OF CRITICAL SUCCESS FACTORS & KEY
9 B B 399 9.4 PERFORMANCE INDICATORS TO PERFORMANCE MEASUREMENT
Is considering pure financial performance measures/ indicators
9 C Test your understanding 402 9.7 sufficient or not?
9 C 3.1.1 417 9.22 Kaplan and Norton - Customer Perspective
9 C 3.1.1 417 9.22 Kaplan and Norton - Financial Perspective
9 C 3.1.1 418 9.23 Kaplan and Norton - Internal Business Perspective
9 C 3.1.1 418 9.23 Kaplan and Norton - Learning and Growth Perspective
Kaplan and Norton classified performance measures into four
9 C 3.1.1 417 9.22 business ‘perspectives
9 B B 399 9.4 Key Performance Indicators (KPIs)
9 C 3.1.3 420 9.25 Linkage between performance measures
9 C Concept Insight 402 9.7 Measure vs. Indicator
9 C 2.7 413 9.18 Net Present Value (NPV)
9 C 3 414 9.19 Non - Financial Performance Measures
Non - Financial Performance Measures - What are the difficulties
and shortcomings of using and interpreting qualitative information
(non–
9 C Test your understanding 415 9.20 financial performance measures/ indicators)?
9 C C 401 9.6 PERFORMACE MEASURES

By CA Avishi Gupta By CA Vinay Kumar 21

Ch-9, 10
Ch Main Sub Concept ICAI SM
No heading heading Pg No Pg No Topic
9 D 1 433 9.38 Performance management system (PMS) - role of quality
9 A A 397 9.2 PERFORMANCE MANAGEMENT SYSTEM IN PRIVATE SECTOR
9 C 1 402 9.7 Performance Measures - Pros and Cons
Performance Pyramid - Identify flows defined in the pyramid &
9 C Test your understanding 426 9.31 quote nature of external and internal forces.
Performance Pyramid - Link Strategy, Operations, and
9 C 3.2 424 9.29 Performance
9 C 3.2.1 425 9.30 Performance Pyramid - Link Strategy, Operations, and Performance
9 C Concept Insight 425 9.30 Performance Pyramid vs. Balanced Scorecard
9 C 2.4 406 9.11 Residual Income (RI)
9 A Concept Insight 398 9.3 Responsibility accounting
9 C 2.2 403 9.8 Return on Capital Employed (ROCE)
9 C 2.3 405 9.10 Return on Investment (ROI)
9 C Test your understanding 407 9.12 Return on Investment (ROI) - Differentiate ROI and RI?
ROLE OF QUALITY IN PERFORMANCE MEASUREMENT SYSTEMS,
9 D D 433 9.38 ESPECIALLY IN CONTEXT OF MANAGEMENT INFORMATION
9 C 3.4 430 9.35 Triple Bottom Line (TBL)
Triple Bottom Line (TBL) - Can you identify businesses falling into
9 C Test your understanding 431 9.36 each sub-set – Bearable, Equitable & Viable?
Triple Bottom Line (TBL) - Can you tell the Pros of the tools detailed
9 C Test your understanding 432 9.37 above, starting from the balanced scorecard to TBL
9 C 3.4.1 431 9.36 Triple Bottom Line (TBL) - Dimension (sets) of TBL
10 C 2 440 10.6 Adapted Balanced Scorecard by Kaplan
Challenges for Measuring Performance - Difficult to quantify the
10 B 1.1 438 10.4 cost and benefits
10 B 1.3 439 10.5 Challenges for Measuring Performance - Measuring Utility of Funds
Challenges for Measuring Performance - Performance and
10 B 1.2 438 10.4 Commitment of State (or Governments of State)
10 B B 438 10.4 Challenges for Measuring Performance and Way-out
10 C C 439 10.5 MODELS FOR MEASURING THE PERFORMANCE
10 A A 436 10.2 NOT-FOR-PROFIT ORGANISATIONS
10 A A 437 10.3 NOT-FOR-PROFIT ORGANISATIONS - Key Characteristics
10 C 3 441 10.7 Other Performance Measures
10 B B 437 10.3 PERFORMANCE MEASUREMENT
PERFORMANCE MEASUREMENT - What kind of performance
10 B B 437 10.3 measures does a not-for-profit organisation need to employ?
10 D D 441 10.7 PERFORMANCE MEASUREMENT PROCESS
10 C 1 439 10.5 Value for Money (VFM) Framework
Value for Money Framework - Can you identify any of 2 financial
10 C Test your understanding 440 10.6 objectives of not-for-profit organisation?

By CA Avishi Gupta By CA Vinay Kumar 22

Ch-11
Ch Main Sub Concept ICAI SM
No heading heading Pg No Pg No Topic
11 E E 449 11.8 ANALYSE THE PERFORMANCE REPORTS TO TAKE REQUIRED ACTION
11 D 3 448 11.7 ESG Reporting
EXTERNAL REPORTING FRAMEWORKS THAT ARE RELEVANT TO
11 D D 447 11.6 STRATEGIC PERFORMANCE MANAGEMENT
11 D 2 448 11.7 Global Reporting Initiative report (GRI report)
11 D 4 448 11.7 Integrated Report (IR)
11 A A 443 11.2 PERFORMANCE MANAGEMENT SYSTEM
11 C 1 444 11.3 Performance Report
Performance Report - Aspects Involved in the Preparation of
11 C 3 445 11.4 Performance Reports
11 C 3.3 446 11.5 Performance Report - Preparation - Add an Executive Summary
Performance Report - Preparation - Details quoted shall be
11 C 3.6 446 11.5 cross-checked
Performance Report - Preparation - Establishment of Objectives in
11 C 3.2 445 11.4 light of Organisational Objectives (Vision or Mission)
Performance Report - Preparation - Have a clear idea about the
11 C 3.1 445 11.4 need and use-case for the user/ receipt
Performance Report - Preparation - Layout is Key - Visual Elements
11 C 3.5 446 11.5 and Narrative Commentary can be added
Performance Report - Preparation - The Real Stuff - Performance
11 C 3.4 446 11.5 Assessment
11 C 2 444 11.3 Performance Report - Role
11 C 4 447 11.6 Performance Report - Type
Performance Report - Why do entities issue and use performance
11 C Do You Know 445 11.4 reports
PERFORMANCE REPORTS AND ITS ROLE IN THE PERFORMANCE
MANAGEMENT SYSTEM IN THE CONTEXT OF RESPONSIBILITY
11 C C 444 11.3 ACCOUNTING
11 B B 444 11.3 RESPONSIBILITY ACCOUNTING
11 D 1 447 11.6 Triple Bottom Line (TBL report)
11 D Concept Insight 448 11.7 Value Creation

By CA Avishi Gupta By CA Vinay Kumar 23

Ch-12
Ch Main Sub Concept ICAI SM
No heading heading Pg No Pg No Topic
12 A Concept Insight 454 12.5 Behavioural Consequences
12 B 2 459 12.1 Cost Based Transfer Price
12 B 2 460 12.12 Cost plus a Mark-up Based Transfer Price
12 B Concept Insight 461 12.12 Cost plus Mark-up Based Transfer Price - Behavioural Consequences
12 D 1 465 12.16 Different Capacity Levels
12 D 2 469 12.2 Different Demand Levels
12 E 1 472 12.23 Dual Rate Transfer Pricing System
12 B 2 460 12.12 Full Cost Based Transfer Price
12 F F 473 12.24 INTERNATIONAL TRANSFER PRICING
12 B 2 459 12.1 Marginal Cost Based Transfer Price
12 B Concept Insight 460 12.11 Marginal Cost Based Transfer Price - Behavioural Consequences
12 B 1 455 12.6 Market Based Transfer Price
12 B Concept Insight 455 12.6 Market Based Transfer Price - Behavioural Consequences
12 B 3 462 12.13 Negotiation Based Transfer Price
12 B Concept Insight 462 12.13 Negotiation Based Transfer Price - Behavioural Consequences
12 E E 472 12.23 PROPOSALS FOR RESOLVING TRANSFER PRICING CONFLICT
12 A 2 453 12.4 Question of Fair Value?
12 B 2 460 12.11 Standard Cost Based Transfer Price
12 B Concept Insight 460 12.11 Standard Cost Based Transfer Price - Behavioural Consequences
12 A A 451 12.2 TRANSFER PRICING
12 C C 462 12.13 TRANSFER PRICING AND GOAL CONGRUENCE
12 D D 463 12.14 TRANSFER PRICING DECISION, DIFFERENT CIRCUMSTANCES
12 B B 454 12.5 TRANSFER PRICING METHODS
12 E 2 472 12.23 Two Part Transfer Pricing System
12 A 1 452 12.3 Utility of Transfer Pricing

By CA Avishi Gupta By CA Vinay Kumar 24

Ch-13
Ch Main Sub Concept ICAI SM
No heading heading Pg No Pg No Topic
13 A 1.2 483 13.2 ANALYSIS OF ADVANCED VARIANCES
13 H H 512 13.31 BEHAVIOURAL ISSUES
Controllable/ uncontrollable variances - What does controllable/
13 A Test Your Understanding 489 13.8 uncontrollable variances mean?
13 J 3 524 13.43 Direct Labour Variances
13 J 2 522 13.41 Direct Material Variances
13 H Practical Insight 512 13.31 Ethical Practices
13 J 4 526 13.45 Fixed Production Overhead Variances
13 J J 514 13.33 FORMULAE
13 F F 507 13.26 INTERPRETATION OF VARIANCES
Investigating Variance - Factors to be Considered When
13 D 1 505 13.24 Investigating Variance
13 D 2 506 13.25 Investigating Variance - Method Used for Investigating Variance
13 D 2.1 506 13.25 Investigating Variance - Simple Rule of Thumb Model
13 D 2.2 506 13.25 Investigating Variance - Statistical Decision Model
13 D D 505 13.24 INVESTIGATION OF VARIANCES
13 F 4 508 13.27 Labour Efficiency Variance
13 F 3 507 13.26 Labour Rate Variance
13 A 3 490 13.9 Learning Curve- Impact on Variances
13 F 1 507 13.26 Material Price Variance
13 F 2 507 13.26 Material Usage Variance
13 A Concept Insight 495 13.14 McDonaldization
13 F 5 508 13.27 Overhead Variances
13 A 1 483 13.2 Planning & Operational Variances
Planning & Operational Variances - What does planning/
13 A Test Your Understanding 489 13.8 operational variance mean?
13 E E 506 13.25 POSSIBLE INTERDEPENDENCE BETWEEN VARIANCES
13 C C 497 13.16 RECONCILIATION OF PROFIT
13 A 4 493 13.12 Relevant Cost Approach to Variance Analysis
13 G G 512 13.31 REPORTING OF VARIANCES
13 F 6 508 13.27 Sales Price Variance
13 B Concept Insight 496 13.15 Sales Variances
13 J 1A 515 13.34 Sales Variances (Absorption Costing)
13 J 1B 517 13.36 Sales Variances (Marginal Costing)
13 J 1C 520 13.39 Sales Variances (Turnover or Value)
13 F 7 508 13.27 Sales Volume Variance
13 I I 513 13.32 STANDARD COSTING IN CONTEMPORARY BUSINESS ENVIRONMENT
13 A 8 495 13.14 Standard Costing in Public Sector
13 A 7 494 13.13 Standard Costing in Service Sector
13 B B 495 13.14 STANDARD MARGINAL COSTING
13 J 5 529 13.48 Variable Production Overhead Variances
13 A 5 494 13.13 Variance Analysis and Throughput Accounting
13 A 2 489 13.8 Variance Analysis in Activity Based Costing
Variance Analysis in Advanced Manufacturing Environment/
13 A 6 494 13.13 High-Technology Firms

By CA Avishi Gupta By CA Vinay Kumar 25