Essentials of Cost Accounting Training
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Essentials of Cost Accounting Training Course
Introduction:
The primary objective of cost accounting is to calculate the manufacturing cost associated with each product of a company. This cost information is then utilized to determine the optimal selling price. Cost accounting plays a crucial role in identifying a company's expenditure, revenue, and areas of financial loss. Its purpose is to report, analyze, and enhance internal cost controls and efficiency.
Cost accountants are essential contributors to a business's trajectory. Careers in accounting and business management offer solid opportunities to play a pivotal role in an organization's potential success. Understanding different types of cost accounting enables better decision-making and effective leadership, guiding businesses in the right direction.
The program covers various cost accounting methods applicable to manufacturing, services, private, governmental, not-for-profit, and trading organizations. It incorporates numerous examples that clearly illustrate and explain relevant techniques and concepts in a user-friendly manner. The program aims to enhance participants' understanding of how to analyze and allocate different costs, enabling them to make informed and strategic business and operational decisions. Additionally, it demonstrates how cost accounting complements management and financial accounting, providing a comprehensive view of the organization's financial landscape
Course Objectives:
At the end of this Essentials of Cost Accounting training course, you will be able to:
- Describe the Fundamental Concepts of Cost Accounting
- Apply Cost Accounting Methods to Identify Profitable Products and Services
- Analyze Reports to Make Sound Pricing Decisions
- Compare Cost Accumulation Systems and Choose the Right One for Your Company
- Evaluate Results Against Budgets with Greater Accuracy
- Use Cost Accounting Methods to Optimize the Use of People, Resources, and Materials
Who Should Attend?
Essentials of Cost Accounting Training course, is designed to help manufacturing managers succeed. If you are responsible for the proper costing of inventory and for assessing manufactured product profitability, this is your Course.
Course Outlines:
Introduction to Cost Accounting
- The meaning, purpose and scope of Cost Accounting
- Cost Accounting and Business Decisions
- Cost Accounting Differentiated from Management Accounting and Financial Accounting
- Cost ascertainment, control, reduction
Cost Accounting Terminology
- Direct and Indirect Costs: Labor, Materials, Expenses
- Classification of Costs
- Costs Centers and Cost Units
- Introduction to Overheads
Cost Behavior
- Importance of Cost Behavior
- Defining Fixed and Variable Costs
- Prediction of Cost Behavior
- Analysis of Cost Behavior
Accounting for Labor Costs
- Remuneration Methods:
- Labor and Total Costs
- Capture of Labor Data Costs
- Direct/Indirect Labor Costs
Material Costs
- Importance of Material Costs
- Pricing methods: FIFO, LIFO, AVCO, Replacement, Standard Cost
- Stock Valuation
- Just-in-time
Absorption Costing
- Definition, Rationale and Importance of Absorption Costing
- Overheads and Allocation
- Absorption Rates
- Cost Units and Cost Centers, Service and Production Departments
Activity Based Costing
- Importance, definition and framework of ABC
- Short-term and Long-term Variable Overhead Costs
- Advanced Manufacturing Technology (AMT)
- Cost Drivers and Rates
Marginal Costing
- Contribution, Overheads and Sales Ratios
- Revenue Statements in Marginal Cost Format
- Break-even (CVP) Analysis and Charts
- Safety Margin and Profit Volume Charts
Marginal Costing Short-term Decision Making
- Short-run Decisions: Make or Buy, Single Orders, Shortages, Choices
- Determining Principle Factors
- Opportunity Costs
- Limitations of Marginal Costing in Short-term Decision Making
Planning and Budgeting
- Budgetary Process, Organizational Framework, Budget Committees
- Interrelationships of Budgets, Integrated budgets
- Budgeting, Uncertainty, Sources of Budgetary Data
- Rolling Budgets, Zero-based Budgeting, Activity-based Budgeting
Standard Costing and Variance Analysis
- Definition of Standard Costs
- Meaning of Variance Analysis
- Variance Elements and Calculation:
- Variance Investigation: Favorable, Adverse, Causes
Capital Investment Appraisal
- Importance and Purpose of Capital Investment Appraisal
- Techniques of Appraisal: ARR, IRR, NPV, payback
- Discounted Cash Flow
- Risk and Uncertainty