Fundamentals of Cost Accounting (Live Online)

Manufacturers have a multitude of costs that must be included in inventory and cost of goods sold: material, labor, direct variable costs, indirect variable costs and fixed costs. You will learn how to properly identify these costs. Using multiple case studies, this seminar will provide you with detailed information on the various techniques companies have devised to apply all these costs to inventory. Doing so ensures that inventory and cost of goods sold are properly valued for both internal and external users. This seminar provides you with the information you need in deciding how to value inventory and cost of goods sold in your company.Who Should Attend:This seminar 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 seminar.How you will benefit:Classify all inventory costsCreate an inventory direct costing systemIdentify fixed manufacturing costsApply fixed manufacturing costs to inventoryCreate a standard costing system and calculate variancesCreate an Activity Based Costing (ABC) systemUse cost-volume-profit analysis to determine break-even points and margins of safetyUse relevant costing models for production decisionsWhat you will cover:Job costing proceduresProcess costing proceduresAbsorption costing techniquesEquivalent units of production calculationsDirect costing techniquesStandard costing techniquesABC costing techniquesCost-volume-profit analysisRelevant costing techniques for future production decisionsNOTE: Please bring a calculator to this seminar.Course Outline:Learning ObjectivesDescribe the Fundamental Concepts of Cost AccountingApply Cost Accounting Methods to Identify Profitable Products and ServicesAnalyze Reports to Make Sound Pricing DecisionsCompare Cost Accumulation Systems and Choose the Right One for Your CompanyEvaluate Results Against Budgets with Greater AccuracyUse Cost Accounting Methods to Optimize the Use of People, Resources, and MaterialsIntroduction to Cost AccountingExplain the Purpose and Functions of Cost Accounting and Its Relationship to Financial AccountingCreate Cost Estimations By Correctly Applying Relevant Cost-Estimation StrategiesDefine and Categorize Inventoriable CostsJob-Order Costing and Process CostingExplain the Purpose and Application of Job-Order CostingExplain the Purpose and Application of Process CostingDescribe and Calculate Equivalent UnitsIdentify, Define, and Categorize Various Types of Product CostsCorrectly Journalize the Costs of Manufacturing Transactions in a Job-Order Costing SystemCorrectly Journalize the Costs of Manufacturing Transactions in a Process Costing SystemAnalyze Overhead Costs and Select the Best Method(s) of Allocating Overhead in a Diverse or Multiproduct OperationCreate Costing Reports, Including a Job-Order Cost Sheet and a Cost of Production ReportJoint Product Costing and Byproduct CostingIdentify Shared Cost Components Across Product LinesRecognize and Differentiate Between Shared Costs and Separable CostsDetermine Correlating Factors for Cost Allocation During ProductionCalculate Net Realizable Value at Various Production PointsDifferentiate Between Two Methods of Byproduct Revenue RecognitionAbsorption Costing vs. Direct CostingDifferentiate Between Absorption and Direct CostingExplain Why Absorption Costing Meets GAAP Requirements While Direct Costing Is Useful for Internal ReportingList the Advantages and Disadvantages of Direct CostingRecognize the Process and Requirement for Establishing a Direct-Costing SystemConvert a Traditional Income Statement into a Direct Costing Income StatementReconcile the Differences in Net Income Between the Two Types of Statements By Using the Same DataStandard Costing and Variance AnalysisExplain the Relationship Between Standard Costs, Employee Motivation, and Performance EvaluationsUnderstand the Different Approaches to Setting Standards and Explain the Implications of Each ApproachIdentify Actions or Situations That Create the Need to Change StandardsAssess the Implications of Changing StandardsDiscover the Reasons for Cost Variances and Make Recommendations to Bring Costs into Better Alignment with Established StandardsActivity-Based Costing (ABC) for Management ControlExplain Reasons for Using Activity-Based Costing Instead of Traditional MethodsIdentify and Assign Costs to ActivitiesDesign a Basic Activity-Based Costing SystemCompare Data Generated By Your Activity-Based Costing System with a Traditional Costing System and Draw Conclusions About the Appropriate Application of Each Method of CostingCost-Volume-Profit Analysis and Break-Even PointIdentify Fixed, Variable, and Mixed CostsApply Cost Accounting Formulas to Identify ProfitabilityExplain the Applications and Limitations of Cost-Volume-Profit AnalysisDiscuss the Use of Contribution Margin in “What If” AnalysisDescribe Margin of Safety and Its Impact on Decisions to Add Fixed Costs or to Change Cost StructuresCreate an Income Statement for Use in a Cost-Volume-Profit Analysis That Segregates Costs According to Their BehaviorRelevant Costing and the Contribution Approach to Decision MakingDetermine Which Costs Are Considered Relevant in a Decision-Making ProcessApply Relevant Costing to Evaluate Different Scenarios When Making DecisionsCalculate Relevant Costs and Analyze the Implications of Accepting Business at a Special PriceCalculate Relevant Costs and Analyze the Implications of Dropping a Product Line or Closing a FacilityCalculate Relevant Costs and Analyze Potential Decisions When There Are Limiting Factors of Production