Essentials of Cost Accounting Training
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Essentials of Cost Accounting Training Course
Introduction:
The main purpose of cost accounting is to determine the manufacturing cost of each product of the company. The cost of the product is then used in the determination of optimum selling price Cost accounting is helpful because it can identify where a company is spending its money, how much it earns, and where money is being lost. Cost accounting aims to report, analyze, and lead to the improvement of internal cost controls and efficiency.
Cost accountants are a critical part of a business's trajectory. Accounting careers and business management are solid choices that put you at the forefront of an organization's potential success. Understanding the types of cost accounting helps you make better decisions and lead your business in the right direction.
The Program covers cost accounting methods for manufacturing, services, private, governmental, not-for-profit, and trading organizations, with many examples that clearly illustrate and explain the relevant techniques and concepts in a clear easy-to-follow way; it explains how to understand, and deal with, and allocate different costs to make sensible and helpful business and operational decisions; it also shows how costing complements management and financial accounting.
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