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CAMCost Accounting and Management
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English
Intermediate
FACE 2 FACE
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Course Overview
Managing costs is an important aspect of managing a company’s profitability and efficiency. During this course, we will review the various methods available to assign costs to products and services, as well as the more qualitative aspects of costing, namely quality costs and environmental costing.
We will also review how the control of costs can help management to make more efficient short-term business decisions and how we can analyse the efficiency of costing methods.
We will also review how the control of costs can help management to make more efficient short-term business decisions and how we can analyse the efficiency of costing methods.
Key Takeaways
1
Understand what is management accounting
2
Understand the differences in gross profit and inventory between different types of companies
3
Calculate inventory cost and the impact on profits of absorption and variable costing methods
4
Understand how to analyze and allocate costs in an activity-based costing system
5
Create a budget to calculate standard costs rates and value inventory using these rates
National Association of State Boards of Accountancy
LEORON Professional Development Institute DMCC is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.NASBARegistry.org
Course Outline
Part 1
What is Management Accounting?
→ Definition of management accounting
→ Differences between financial accounting and management accounting
Case study: The participants will be required to complete a short quiz.
→ Differences between financial accounting and management accounting
Case study: The participants will be required to complete a short quiz.
Cost Classification for Different Types of Companies
→ Manufacturing companies
→ Retailing companies
→ Service companies
Case study: The participants will be required to review a number of anonymous companies’ financial statements extracts and determine which type of company they are.
They will also be required to discuss the differences between these companies.
→ Retailing companies
→ Service companies
Case study: The participants will be required to review a number of anonymous companies’ financial statements extracts and determine which type of company they are.
They will also be required to discuss the differences between these companies.
Product Costing Using Job Order Costing and Process Costing
→ Differences between job order costing and process costing
→ Recording materials and labour costs in a job order costing system
→ Recording overheads in a job order costing system
→ Recording completion and sales of finished goods
→ Adjusting for over/under allocation of overheads
→ Allocating costs in a process costing system
Case study: The participants will be required to review the costs incurred in a manufacturing company and allocate these costs to the jobs and/or processes. They will also be required to justify their decision, discuss the main differences between job order and process costing, and highlight the impact of the costing decisions on profits.
→ Recording materials and labour costs in a job order costing system
→ Recording overheads in a job order costing system
→ Recording completion and sales of finished goods
→ Adjusting for over/under allocation of overheads
→ Allocating costs in a process costing system
Case study: The participants will be required to review the costs incurred in a manufacturing company and allocate these costs to the jobs and/or processes. They will also be required to justify their decision, discuss the main differences between job order and process costing, and highlight the impact of the costing decisions on profits.
Part 2
Absorption and Variable (Marginal) Costing
→ The differences between absorption costing and variable costing
→ Treatment of fixed costs under variable costing
→ Treatment of fixed costs under absorption costing
→ Different absorption costing methods available
Case study: The participants will be required to allocate costs using both absorption and variable costing, discuss the differences between these costing methods and the impact on inventory valuation and profits.
→ Treatment of fixed costs under variable costing
→ Treatment of fixed costs under absorption costing
→ Different absorption costing methods available
Case study: The participants will be required to allocate costs using both absorption and variable costing, discuss the differences between these costing methods and the impact on inventory valuation and profits.
Standard Costing and Flexible Budgeting
→ Preparing a flexible budget for the income statement
→ Preparing an income statement performance report
→ The benefits of standard costing and how to set standards
→ Computing standard cost variances for direct materials and direct labour
→ Analysing manufacturing overheads in a standard costing system
→ Recording transactions at standard cost and preparing a standard cost income statement
Case study: The participants will be required to prepare a flexible budget using standard costing. They will thereafter be required to analyse the variances to actual costs and prepare a report for management as to their impact on profits.
→ Preparing an income statement performance report
→ The benefits of standard costing and how to set standards
→ Computing standard cost variances for direct materials and direct labour
→ Analysing manufacturing overheads in a standard costing system
→ Recording transactions at standard cost and preparing a standard cost income statement
Case study: The participants will be required to prepare a flexible budget using standard costing. They will thereafter be required to analyse the variances to actual costs and prepare a report for management as to their impact on profits.
Activity Based Costing and Activity Based Management
→ What is activity based costing?
→ Identifying the relevant activities
→ Identifying the relevant cost drivers
→ Computing the allocation rates
→ Allocation of indirect costs using ABC
→ Activity Based Management - using ABC to make decisions
Case study: The participants will be required to allocate costs using the activity based costing method, compare to other costing methods for differences in inventory valuation and profits, and thereafter discuss the merits of this costing method.
→ Identifying the relevant activities
→ Identifying the relevant cost drivers
→ Computing the allocation rates
→ Allocation of indirect costs using ABC
→ Activity Based Management - using ABC to make decisions
Case study: The participants will be required to allocate costs using the activity based costing method, compare to other costing methods for differences in inventory valuation and profits, and thereafter discuss the merits of this costing method.
Just-in-time (Jit) Production Systems
→ What is a JIT system?
→ Advantages and disadvantages of JIT systems
→ JIT costing
Case study: The participants will be required to discuss the impact on inventory valuation and profits of changing to a JIT system from a traditional production approach, based on financial information provided, and make a recommendation as to whether to adopt this system or not.
→ Advantages and disadvantages of JIT systems
→ JIT costing
Case study: The participants will be required to discuss the impact on inventory valuation and profits of changing to a JIT system from a traditional production approach, based on financial information provided, and make a recommendation as to whether to adopt this system or not.
Part 3
Total Quality Management (TQM)
→ What is Total Quality Management?
→ The four types of quality costs
→ Deciding whether to adopt a new quality program
Case study: The participants will be required to calculate the potential cost savings of adopting a number of quality programs and make a recommendation as to whether to go ahead with a specific program or not at all.
→ The four types of quality costs
→ Deciding whether to adopt a new quality program
Case study: The participants will be required to calculate the potential cost savings of adopting a number of quality programs and make a recommendation as to whether to go ahead with a specific program or not at all.
Cost-Volume-Profit Relationships and Analysis
→ How do changes in volume affect costs?
→ Using CVP analysis to compute breakeven points
→ Using CVP analysis for profit planning
→ Using CVP methods to perform sensitivity analyses
→ Calculating the breakeven point for multiple products or services
Case study: The participants will be required to prepare a report for management highlighting the sales volume required to achieve various profit levels, as well as the breakeven sales volume. The analysis should include a calculation of the extent by which each element of the profit equation needs to change to achieve a specified reduction in the breakeven sales volume.
→ Using CVP analysis to compute breakeven points
→ Using CVP analysis for profit planning
→ Using CVP methods to perform sensitivity analyses
→ Calculating the breakeven point for multiple products or services
Case study: The participants will be required to prepare a report for management highlighting the sales volume required to achieve various profit levels, as well as the breakeven sales volume. The analysis should include a calculation of the extent by which each element of the profit equation needs to change to achieve a specified reduction in the breakeven sales volume.
Making Short Term Business Decisions
→ What are relevant costs?
→ What is a cost benefit analysis?
→ Making special order and pricing decisions
→ Making drop a product and product-mix decisions
→ Making outsourcing decisions
→ Making sell as is or process further decisions
Case study: The participants will be required to complete a number of exercises relating to short term business decisions, and justify their recommendations.
→ What is a cost benefit analysis?
→ Making special order and pricing decisions
→ Making drop a product and product-mix decisions
→ Making outsourcing decisions
→ Making sell as is or process further decisions
Case study: The participants will be required to complete a number of exercises relating to short term business decisions, and justify their recommendations.
Environmental Costing
→ The impact of environmental issues on costs
→ TQM as it applies to environmental costs
→ Contribution of environmental costing to improved environmental and financial performance
Case study: The participants will be required to identify and analyse the environmental costs of a company and split them into the four types of quality costs. They will thereafter be required to discuss options for managing these costs with the objective of improving the company’s environmental and financial performance.
→ TQM as it applies to environmental costs
→ Contribution of environmental costing to improved environmental and financial performance
Case study: The participants will be required to identify and analyse the environmental costs of a company and split them into the four types of quality costs. They will thereafter be required to discuss options for managing these costs with the objective of improving the company’s environmental and financial performance.
Who Should Attend?
This highly practical and interactive course has been specifically designed for
This program is designed for delegates who wish to understand the methods for cost allocation and management, and the analysis of the impact of costing options on profitability and decision making. It would benefit both individuals with no previous knowledge of cost accounting and management, and those with some experience in management accounting or finance. However, no previous knowledge of cost accounting or finance is required, as we will cover the basics before going into more details.
Individuals in the following job descriptions, as well as those with an interest in cost accounting, would benefit from this course:
→ Cost accountants
→ Management accountants
→ Finance managers
→ Financial controllers
→ Budget and forecasting controllers
→ Financial planning and analysis managers
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FAQ
What language will the course be taught in and what level of English do I need to take part in an LEORON training program?
Most of our public courses are delivered in English language. You need to be proficient in English to be able to fully participate in the workshop and network with other delegates. For in-house courses we have the capability to train in Arabic, Dutch, German and Portuguese.
Are LEORON Public courses certified by an official body/organization?
LEORON Institute partners with 20+ international bodies and associations.We also award continuing professional development credits (CPE/PDUs) for:1. NASBA (National Association of State Boards of Accountancy) 2. Project Management Institute PDUs 3. CISI credits 4. GARP credits 5. HRCI recertification credits 6. SHRM recertification credits
What is the deadline for registering to a public course?
The deadline to register for a public course is 14 days before the course starts. Kindly note that occasionally we do accept late registrations as well, but this needs to be confirmed with the project manager of the training program or with our registration desk that can be reached at +1071 4 1075 5711 or [email protected].
What does the course fee cover?
The course fee covers a premium training experience in a 5-star hotel, learning materials, lunches & refreshments, and for some courses, the certification fee and membership with the accrediting bodies.
Does LEORON give discounts?
Yes, we can provide discounts for group bookings. If you would like to discuss a discount on a corporate level, we will be happy to talk to you.
Reviews
- Review:IAMM Internal Audit Maturity ModelIn recognition of their dedication and contribution supporting IKEA Saudi Arabia in arranging training programs during 2017 & 2018, looking forward for more development and exciting effort this year. On behalf of IKEA Saudi Arabia, THANK YOU!Dalal KutbiCountry Learning & Development Manager at IKEA Saudi Arabia
- Review:Certified Professional in Quality and Patient SafetyDating back to 2014, Mobily’s “LEORON” experience has grown from a single collaboration to a long-term partnership. We consider ‘’LEORON” Institute as a strategic partner, whose contribution has been nothing but premium in equipping our staff with field-based knowledge and information. Past three years have resulted with an expanded collaboration with superior customer service and support. Best Regards,Turki S. AlsahaanDir L&D, Talent Management at Mobily, Etihad Etisalat Company
- Review:Certified Professional in Quality and Patient SafetySince the partnership was signed between BAE Systems Saudi Development & Training and LEORON in 2017, we have been working together to offer the Saudi market a complete portfolio of training solutions benefiting from the wide and extensive experience of both parties. Recognizing the great success of this partnership, we are looking for further collaborations in the future that will position both companies as one of the leading training providers in Saudi Arabia. We thank the LEORON team for their full cooperation and continuing support, and look forward to further success together in the years to come.Emad AlrajihVP, Business Winning at BAE Systems Saudi Development & Training
- Review:Certified Professional in Quality and Patient SafetyWe have been working with LEORON for the past two years and will be working with them again this upcoming year. The programs they delivered were fruitful and exciting and our organization has received positive feedback from the participants. What our organization aims to do is to provide at no cost training for all the private sector employees so that they may benefit from our offered programs in Innovation and Professional development. LEORON has helped us achieve this goal. We look forward to continuing this service and wish them the best of luck. Regards,Nasser M. Al-SubaieSr. Program Officer, Enterprise Learning & Human Development at Kuwait Foundation for the Advancemen
