Cost Accounting

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