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ECTS Course Overview

Cost Management and Price Strategy

* Exchange students do not have to consider this information when selecting suitable courses for an exchange stay.

Course Unit Code115-0543/02
Number of ECTS Credits Allocated4 ECTS credits
Type of Course Unit *Choice-compulsory
Level of Course Unit *First Cycle
Year of Study *
Semester when the Course Unit is deliveredWinter Semester
Mode of DeliveryFace-to-face
Language of InstructionEnglish
Prerequisites and Co-Requisites Course succeeds to compulsory courses of previous semester
Name of Lecturer(s)Personal IDName
BAR404Ing. Terezie Krestová
ZEL089Ing. Kateřina Stanovská, Ph.D.
The aim of the lectures is to provide to students basic information about classification costs, creation of cost functions and using the functions in a practical conditions. It is followed by an overview of the pricing and creating pricing strategies, including their practical application.
Learning Outcomes of the Course Unit
Introduce the basic concepts of cost theory, the classification of costs according to different perspectives and following methods of cost analysis.
Understand the possibilites of using different methods and techniques of cost analysis to make optimal decisions on the efficient structure of cost inputs.
Identify the critical control parameters and effects on costs and to characterize their influence on the process of cost management.
- Compare and evaluate pricing strategies in response to specific business conditions and forecast their positive and negative impacts.
Course Contents
1. Characteristics of processes of management and business
- The principles and objectives of these processes in an enterprise.
- The role of costs in the economic system of the company.
- Factors affecting the cost.
2. The concept and structure of costs in the business entity
- Characteristics of financial, economic value and concept of costs.
- Distribution of costs (generic, self-serving, depending on the volume carried
performance for decision-making purposes).
- Practical applications of the various classifications in terms of business.
3. Production function
- Basic characteristics of the production function.
- Approaches to the analysis of production functions, possible applications of the conclusions.
4. Cost function
- Basic principles of cost theory.
- Characteristics of cost functions.
- Approaches to the analysis of cost functions and practical applications.
5. Methods for determining cost functions
- Classification method.
- Orientation simple methods (two periods, the graphical method).
- Statistical methods.
- Method of Newton's interpolation polynomial, the conditions of use.
- Use of cost functions in cost management.
6. Cost calculations
- Breakdown of calculations based on various criteria.
- Costing techniques, calculation methods.
- Use of cost calculations in the specific business conditions.
7. Standardisation costs
- Types of cost standards and how they work.
- Cost management in the enterprise with using of standard cost method.
8. Competitive cost strategy of the business entity
- Competitive advantage and value chain.
- Drivers of cost factors that affect them.
9. Practical techniques and methods of cost management in the business entity
- Control of fix costs.
- Control of variable costs.
- The evaluation criteria in the process of cost management.
10. Basic principles of the theory of demand and pricing
- The law of demand and its practical application,
- Price elasticity of demand (including the cross, respectively income elasticity) and the factors that affect it.
- Classification of forms according to the market price criteria, Amomso-Robinson relationship.
11. The pricing models
- Characteristics of price equilibrium in the perfect and imperfect market.
- Cost-political models of monopolistic and oligopolistic firms (various
- Applications in concrete terms.
12. The practical orientation of pricing in the business entity
- Cost oriented price and their use in pricing strategy.
- Demand-orientation of prices and business practices in its application.
- Competitive and sectoral orientation of pricing as a basis for conflict-free
pricing strategies.
13. Cost strategy of the business entity
- Strategies for new products marketed.
- Strategies for implementing sale.
- Choice of pricing strategies according to the conditions of competition.
- Price differentiation strategy and its forms.
14. Practical aspects of pricing decisions in the business entity
- Cost Control, its place and role in corporate structure.
- The objectives of pricing, price controls, price discounts and rebates, in-house
- Legal aspects of pricing in the company.
Recommended or Required Reading
Required Reading:
HANSEN, R.D., M.M. MOWEN and L. GUAN. Cost management: accounting & control. 6th ed. Cengage Learning, 2007. 832 p. ISBN 978-0324-559-675.
SCHERMERHORN, J.R. Management. 10th ed. New York: John Wiley & Sons. 2010. 624 p. ISBN 978-0-470-29437-6.
BARTUSKOVÁ, Terezie. Nákladové řízení a cenová strategie. Ostrava: VŠB - TU Ostrava, 2012. ISBN 978-80-248-2540-3.
KRÁL, B. et. al. Manažerské účetnictví. 3. dopl. a aktual. vyd. Praha: Management Press, 2010. ISBN 978-80-7261-217-8.
KOTLER, Philip a Kevin L. KELLER. Marketing management. 12. vyd. Praha: Grada Publishing, 2007. 788 s. ISBN 978-80-247-1359-5.
MACÍK, K. Kalkulace a rozpočetnictví I. 3. vyd. Praha: ČVUT, 2008. 213 s. ISBN 978-80-01-03926-7.
POPESKO, Boris. LANG, Helmut. Moderní metody řízení nákladů. Praha: Grada Publishing, 2009. 233 s. ISBN 978-80-247-2974-9.
SYNEK, M. et al. Manažerská ekonomika. 4. vyd. Praha: Grada Publishing, 2007. 464 s. ISBN 978-80-247-1992-4.
Recommended Reading:
DALY, John L. Pricing for profitability: activity-based pricing for competitive advantage. John Wiley and Sons, 2002. 271 p. ISBN 9780471415350.
DOYLE, David. Cost Control a strategic guide. 2nd ed. London: CIMA Publishing, 2002. ISBN 978-1859715178
HANNA, R.; DODGE, N. Pricing.Policies and Procedures. Palgrave Macmillan, 1997. ISBN 978-0333694138.
LANG, Helmut. Exercises of Cost Accounting. Praha: VŠE, 2003. ISBN 80-245-0596-7.
PORTER, M.E. Competitive Strategy: Techniques for Analyzing Industries and Competitors. Simon and Schuster, 1998. 396 p. ISBN 978-0684-841-489.
DEDOUCHOVÁ, Marcela. Strategie podniku. Praha: C.H. BECK, 2001. 272 s. ISBN: 80-7179-603-4.
FIBÍROVÁ, J., L. ŠOLJAKOVÁ a J. WAGNER. Nákladové účetnictví (Manažerské účetnictví I). 3. vyd. Praha: VŠE, 2004. 374 s. ISBN 80-245-0746-3.
HANNA, Nesim a Robert H. DODGE. Zásady a postupy tvorby cen. Praha: Management Press, 1997. 203 s. ISBN 80-85943-34-4.
KOZEL, R. et al. Moderní marketingový výzkum. Praha: Grada Publishibg, 2006. 277 s. ISBN 80-247-0966-X.
SEDLÁČKOVÁ, Hana a Karel BUCHTA. Strategická analýza. 2. přeprac. vyd. Praha: C.H.BECK, 2006. 121 s. ISBN 80-7179-367-1.
SOUKUPOVÁ, J. et al. Mikroekonomie. 3. dopl. vyd. Praha: Management Press, 2002. 548 s. ISBN 80-7261-061-9.
Obchodní zákoník. § 2 zákona č. 513/1991 Sb.
Planned learning activities and teaching methods
Lectures, Individual consultations
Assesment methods and criteria
Tasks are not Defined