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: