Cost Accounting and Management

Course Overview

The modern economic environment has become so complex and competitive that last year's financial statements are no longer adequate for the successful running of an organization. There is an increasing demand for accountants who are able to provide current information (today's facts and tomorrow's probabilities) that is essential for the efficient running of a modern organization. The main task of the Cost and Management Accountant is to collect and process information before passing it on to management for decision-making. Among other things, the work also involves:

  • Long-term planning and development of strategies and methods to meet the objectives of the organization.
  • Short-term operational planning and control of projects and resources by means of budgets
  • Recording and analyzing transactions and activities and compiling management accounts
  • Providing and interpreting financial and economic information for decision making
  • Obtaining and controlling funds

Course Objectives

When you complete this course, you will be able to:

  • Calculate marginal and absorption costs.
  • Compare activity-based costing with traditional marginal and absorption costing methods.
  • Identify the uses of activity-based management outputs in improving the efficiency of repetitive overhead activities.
  • Identify methods of allocating joint costs to final products.
  • Identify the role of quality costing as part of a total quality management (TQM) system.

Course Content

Traditional Costing
Examines the overall purposes of costing and why it is important for a business to determine the cost of its products or services.

Activity-Based Costing
Examines modern production environments and how activity-based costing may be more useful than traditional methods of costing (marginal and absorption).

Activity-Based Management
Explores activity-based costing approaches, such as activity-based management, direct product profitability, direct customer profitability and distribution channel profitability.

Alternative Costing Methods I
Includes an in-depth examination of three costing methods, joint product costing, throughput accounting, and environmental costing.

Alternative Costing Methods II
Covers costing techniques and learning curves. First it examines the target costing approach which is a form of life-cycle costing and is a pro-active cost control system. Then it includes a background on learning curves, as well as explores logarithms.

Quality Management and Process Improvement
Explores the modern business environment for manufacturers including the growth of world class manufacturers, and characteristics of the modern manufacturing environment.

Course Methodology

The training is going to be highly interactive combination of lectures, group discussions, questionnaires, individual reflections, role plays, simulations and videos.

Target Audience

Management accountants wanting to develop skills in financial performance management

Duration

4 Days (08:30–14:30) with appropriate breaks for tea/refreshments and lunch.

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