Essentials of Cost Accounting Training Course

Course Overview:

The Essentials of Cost Accounting offers an advanced level of knowledge to the manufacturing’s management regarding the cost structure and the most reasonable solutions to be implemented.

This includes areas such as labour and material costing, direct and indirect costs, as well as the use of different costing techniques: absorption, activity based, and marginal. Other relevant topics that the course is about are budgeting and budgetary control, cost control evaluation in terms of variances, and investment evaluation methods such as NPV, IRR, payback etc.

 At the end of the session, delegates are expected to be able to make the best choice of resources, determine the behavior of costs and be able to set appropriate prices and profit margins.

This course is perfectly suited for those who work with inventories and are responsible for the assessment of product profitability.

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

see more: Fast Closing Monthly and Year-End Accounts Course