Fundamentals of Cost Accounting
Fundamentals of Cost Accounting
Course Description
Cost Accounting Fundamentals addresses all key cost accounting topics, including inventory valuation, job costing, process costing, and standard costing. The course also covers the role of the cost accountant in setting prices, not only to outside customers, but also to other subsidiaries. The course delves into many other areas of concern to the cost accountant, including target costing, constraint analysis, capital budgeting, the cost of quality, and even cost collection systems.
Objectives
- Information for informed management decisions
- Management use of management accounting information
- A new role for the management accountant
- Different Approaches to Costing (Standard Costing, Activity-Based Costing)
- Product costing in multinational firms
- Decision Making with Relevance Costs and a Strategic Emphasis
Who Should Attend
Managers with direct financial responsibilities, managers and Seniors who need to know more about business planning, budgeting, costing terms and techniques. Cost and management accountant, financial planners and cost analysts, senior managers who supervise people with financial responsibilities, financial and budget controllers who are moving to wider responsibilities, managers who have to plan, cost and budget new business ventures. Managers and Supervisors from every business discipline and department who have to run departments and plan, cost and budget during their business lives. Managers who require a refresher programme on the topic or who would benefit from having an opportunity to consider new ideas and methods.
Course Summary
At the end of each session the participants will develop an Excel file that can be used as template for practical cost accounting purposes.
Outline
Module One: Introduction to Cost
Accounting
Uses of cost accounting information
Professional ethics, CMA certification, and
corporate governance
Relationship of cost accounting and financial
and management accounting
Elements of manufacturing costs
Illustration of accounting for manufacturing
cost
Cost accounting systems
Illustration of a job order cost system
Module Two: Accounting for Materials
Materials control
Materials control procedures
Accounting for materials
Just-in-time materials control
Scrap, spoiled goods, and defective work
Module Three: Accounting for Labor
Wage plans
Controlling labor cost
Accounting for labor costs and employers’
payroll taxes
Payroll accrual
Special labor cost problems
Module Four: Accounting for Factory
Overhead
Identifying cost behavior patterns
Analyzing semi-variable factory overhead costs
Budgeting factory overhead costs
Accounting for actual factory overhead
Accounting for actual and applied factory
overhead
Distributing service department expenses
Applying factory overhead to production
Module Five: Process Cost Accounting-
General Procedures
Comparison of basic cost systems
Product cost in a process cost system
Work in progress inventories
Cost of production summary – one department,
no beginning inventory
Cost of production summary – one department,
beginning inventory
Cost of production summary – multiple
departments, no beginning inventory
Cost of production summary – multiple
departments, beginning inventory
Changes in prior department’s unit transfer
cost
Module Six: Process Cost Accounting--
Additional Procedures
Accounting for Joint Products and By-Products
Equivalent production – materials not uniformly
available
Units lost in production
Units gained in production
Equivalent production: first in, first out method
Joint products and by-products
Module Seven: The Master Budget and
Flexible Budgeting
Principles of budgeting
Preparing the master budget
Flexible budgeting
Preparing the flexible budget for factory overhead
Module Eight: Standard Cost Accounting--
Materials, Labor, and Factory Overhead
Types of standards
Determination of variances
Accounting for variances
Interpreting variances
Features of a standard cost accounting system
Illustration of standard cost in a
departmentalized factory
Analysis of factory overhead standard cost
variances
Two-variance method of analysis
Four-variance method of analysis
Three-variance method of analysis
Module Nine: Cost Accounting for Service
Businesses and the Balanced Scorecard
Job order costing for service businesses
Budgeting for service businesses
Activity-based costing in a service firm
Allocations using simplified costing versus activity-based costing
The balanced scorecard and quality costs
Meaning of the cost of quality
Module Ten: Cost Analysis for
Management Decision Making
Variable costing absorption costing
Merits and limitations of variable costing
Segment reporting for profitability analysis
Cost-volume profit analysis
Contribution margin ratio and margin of safety
Effect of income tax on break-even point
Certificates
A Certificate of Completion will be issued to those who attend & successfully complete the programme.
Schedule
08:30 – 10:15 First Session
10:15 – 10:30 Coffee Break
10:30 – 12:15 Second Session
12:15 – 12:30 Coffee Break
12:30 – 14:00 Third Session
14:00 – 15:00 Lunch
Training Methodology:
This interactive training course includes the following training methodologies as a percentage of the total tuition hours:
- 30% Lectures, Concepts, Role Play
- 30% Workshops & Work Presentations, Techniques
- 20% Based on Case Studies & Practical Exercises
- 20% Videos, Software & General Discussions
- Pre and Post Test
Fees
The Fee for the seminar, including instruction materials, documentation, lunch, coffee/tea breaks & snack is:
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