Course Name:
Cost Accounting for Control and Decision Making
Date:03/11/2024 - 06/11/2024
Location:Cairo
Conducted By:
RTC
How Will I Benefit?
- Understand the fundamental cost terms, concepts, and classifications.
- Identify the cost elements of manufactured products
- Understand cost classifications used in making decisions: differential costs, opportunity costs, and sunk costs.
- Understand the basic concepts underlying the cost-volume-profit (CVP) relationship in both a single and a multi-product firm.
- Explain how variable costing differs from absorption costing in product costing and internal decision making.
- Identify relevant and irrelevant costs and benefits in a decision.
- Identify the most recent applied cost accounting methodologies.
Who Should Attend?
- Members of the operational management team
- Managers who have responsibility for divisional performance
- Managers who have responsibility for support functions
- Consultants who provide advice on systems and operations
- Senior staff members of any department
Course Contents:
- Managerial Accounting &Cost Concepts.
- Understand cost classifications used for assigning costs to cost objects: direct costs and indirect costs.
- Identify and give examples of each of the three basic manufacturing cost categories.
- Understand cost classifications used to prepare financial statements: product costs and period costs.
- Understand cost classifications used to predict cost behavior: variable costs, fixed costs, and mixed costs.
- Analyze a mixed cost using a scatter graph plot and the high-low method.
- Prepare income statements for a merchandising company using the traditional and contribution formats.
- Understand cost classifications used in making decisions: differential costs, opportunity costs, and sunk costs.
- Cost-Volume-Profit Relationships
- Explain how changes in activity affect contribution margin and net operating income
- Prepare and interpret a cost-volume-profit (CVP) graph and a profit graph.
- Use the contribution margin ration (CM ratio) to compute changes in contribution margin and net operating income resulting from changes in sales volume.
- Show the effects on net operating income of changes in variable costs, fixed costs, selling price, and volume.
- Determine the break-even point.
- Determine the level of sales needed to achieve a desired target profit.
- Compute the margin of safety and explain its significance.
- Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income.
- Compute the break-even point for a multiproduct company and explain the effects of shifts in the sales mix on contribution margin and the break-even point.
- Variable Costing and Segment Reporting: Tools for Management
- Explain how variable costing differs from absorption costing and compute unit product costs under each method.
- Prepare income statements using both variable and absorption costing.
- Reconcile variable costing and absorption costing net operating incomes and explain why the two amounts differ.
- Prepare a segmented income statement that differentiates traceable fixed costs from common fixed costs and use it to make decisions.
- Compute companywide and segment break-even points for a company with traceable fixed costs.
- Compute the direct materials price and quantity variances and explain their significance.
- Compute the direct labor rate and efficiency variances and explain their significance.
- Compute the variable manufacturing overhead rate and efficiency variances and explain their significance.
- Differential Analysis: The Key to Decision Making
- Identify relevant and irrelevant costs and benefits in a decision.
- Prepare an analysis showing whether a product line or other business segment should be added or dropped.
- Prepare a make or buy analysis.
- Prepare an analysis showing whether a special order should be accepted.
- Determine the most profitable use of a constrained resource.
- Determine the value of obtaining more of the constrained resource.
- Prepare an analysis showing whether joint products should be sold at the split-off point or processed further.
Fees
Members:USD
1400
Non Members:USD
1550