Cost Accounting
The Workshop will cover the following:
Introduction to Cost Accounting- Definition of cost accounting
- Understand the concept of cost accounting from a manager’s perspective
- How cost accounting will help your decision-making process and help to focus on growth, profits, and opportunities
Classification of Costs
- The Difference Between Costs and Expenses
- Direct Versus Indirect Costs
- Costs Based on Level of Production (Fixed, Variable and Mixed Costs).
- Production vs. Period Costs
- Characteristics of overhead costs
- Characteristics of variable costs
The flow of Manufacturing Costs
- Cost flow assumptions
- Materials Inventory
- Payroll
- Manufacturing overhead
- Work-in-Process Inventory
- Finished Goods Inventory
- Cost of Goods manufactured/ Cost of goods sold
Standard Costing
- Definition of standard costing
- Standard costing versus actual costing
- Definition of direct material, direct labor and manufacturing overhead
- Application of the traditional costing system
- Accounting for variances between standard costing and actual costing:
a) Direct Material
b) Direct labor
c) Manufacturing overhead costs
Other Costing Systems
- Process costing
- Job order costing
- Activity based costing
- Life cycle costing
- Customer life cycle costing
- Joint products and byproducts
- Variable and absorption costing
Budgets and Flexible Budgets
- The use of standard costing for budget preparation
- Analysis of variances between flexible budgets and actual results
Implementing Cost Accounting
- Get the accounting department on board — how to convince them that extra work involved with producing cost accounting data that is worth the effort
- How to work through the challenges involved in implementing a cost accounting system within your organization