Course description
The main purpose of cost accounting is to determine the manufacturing cost of each product of the company. The cost of the proudct is then used in 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, analyse, 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.
Upcoming start dates
Upcoming start dates
Suitability - 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.
Outcome / Qualification etc.
At the end of the Essentials of Cost Accounting trining 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
Training Course Content
Day 1
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: Labour, Materials, Expenses
- Classification of Costs
- Costs Centres and Cost Units
- Introduction to Overheads
Cost Behaviour
- Importance of Cost Behaviour
- Defining Fixed and Variable Costs
- Prediction of Cost Behaviour
- Analysis of Cost Behaviour
Day 2
Accounting for Labour Costs
- Remuneration Methods:
- Labour and Total Costs
- Capture of Labour Data Costs
- Direct/Indirect Labour 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 Centres, Service and Production Departments
Day 3
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
Day 4
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, Organisational Framework, Budget Committees
- Interrelationships of Budgets, Integrated budgets
- Budgeting, Uncertainty, Sources of Budgetary Data
- Rolling Budgets, Zero-based Budgeting, Activity-based Budgeting
Day 5
Standard Costing and Variance Analysis
- Definition of Standard Costs
- Meaning of Variance Analysis
- Variance Elements and Calculation:
- Variance Investigation: Favourable, 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
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