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Principles of Cost Accounting

presented by Academy of Business Training

Improve your cost accounting skills NOW

Full Description

  • Learn industry recommended bookkeeping procedures and best practices.
  • Learn from a professional with 30+ years business experience.

This six day class, held in two three day sessions, packs the essentials you need to know for your future in a unique ten module format that is well organized, practical, and concise. You gain a thorough understanding of cost concepts, cost behavior, and cost accounting techniques as they apply to manufacturing and service businesses.

To ensure your understanding, the class introduces concepts in small, manageable sections that are immediately reinforced with proven questions, demonstration problems, practice exercises, and quizzes. You master the fundamentals of job order costing and process costing before progressing to more advanced topics, such as budgeting, standard costing and variance analysis, costing for service businesses, and cost analysis for management decisions.

Focus on the skills that will take you far in today's competitive job market as you learn how to determine the costs of products and services accurately and how to set effective selling prices. Learn the techniques to measure accurately the performance of managers within an organization and to use accounting to motivate managers toward an organization's goals. Find the relevant approach you need with the real cost accounting skills that will take you far in business today.

Each Student Receives:

  • Instruction from an experienced business professional (minimum of 30 years) with at least five years in a corporate senior management position (CEO, President, COO, Vice President, CFO).
  • Real life exercises to support training materials.
  • Individual attention (classes are limited to four students).
  • Personalized Certificate of Completion

Class Outline

Session One

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 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
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

Session Two

Module Six: Process Cost Accounting -- Additional Procedures
Accounting for Joint Products and By-Products
Equivalent production – materials not uniformly
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
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

Who Should Attend


Additional Information

Training Provider: Academy of Business Training

Course Topics: Accounting Training > Accounting Miscellaneous

Training Course Summary: Improve your cost accounting skills NOW

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