Course description
Accounting relies heavily on knowing how much money a company spends on numerous activities. One can’t tell whether the company is generating a profit if they don’t keep track of this data. It is in this context that cost accounting becomes useful. It’s all about how much it costs to keep the firm afloat.
What are the types of cost accounting?
Cost Accounting is an accounting method that measures every cost incurred within an accounting period to help management reach correct decisions. It involves classifying, recording, and collecting every cost incurred and analyzing and summarising them. There are four types of cost accounting: lean accounting emphasizes lean-based performance calculations and value-based pricing. Standard Cost Accounting utilizes different ratio types to measure the efficiency of materials and labor used to produce goods and services under normal working conditions; marginal accounting, also known as cost-volume-profit analysis, is used to analyze the connection between a company’s sales volume, production profits, expenses, and costs. And lastly, activity-based Cost Accounting involves tracking resource consumption, costing outputs, and resources attached to activities.
Upcoming start dates
Suitability - Who should attend?
Who Should Attend?
The Rcademy Cost Accounting and Cost Management Certification Training Course is designed for many professionals within the financial sector and businesses involved in Cost Accounting and Cost Management. The following personnel should undertake the course:
- Financial managers:responsible for evaluating financial reports, preparing financial forecasts, and monitoring accounts
- Senior accountants:tasked with analyzing different financial transactions and preparing monthly, quarterly, or annual financial reports
- Strategic planners:charged with shaping a firm’s general business strategy, designing financial plans, and analyzing business decisions
- Cost accountants:responsible for monitoring and evaluating a company’s expenditures
- General ledger accountants:responsible for preparing journal entries and reconciling financial accounts and statements to ensure accuracy
- Budget analysts: charged with monitoring a company’s spending to ensure that funds are adequately assigned and utilized according to the plan
- Auditors:tasked with reviewing and analyzing a company’s financial records and its compliance with regulations and policies
- Payroll accountants:tasked with processing salary payments for employees and updating the payroll system
- Asset Managers:responsible for managing the assets of a company and also executing programs that raise the value of a company’s assets
- Sales/marketing experts:charged with measuring the effectiveness of a firm’s marketing and promotional campaigns
- Cost managers:charged with planning a company’s budget and ensuring the cost-effective business transactions
- Is any other personinterested in learning about the basics of Cost Accounting and Cost Management
Outcome / Qualification etc.
The Rcademy Cost Accounting and Cost Management Certification Training Course will provide attendees with the in-depth knowledge and skills required to succeed in Cost Accounting and Cost Management. Upon conclusion of this course, participants would have attained the following objectives:
- Understand the rudiments of Cost Accounting and Cost Management
- Learn about various types of costs and Cost Accounting systems
- Recognize the differences between modern and traditional Cost Management methods and their applications
- Learn the different project pricing techniques and overhead costing
- Learn how to apply performance evaluation methods by linking success factors with vital performance indicators
- Recognize the total costs of outputs for every good and service provided
- Understand the rudiments of budgeting and how it impacts the Cost Management process
- Discuss the concept of variance and the types of variances
- Evaluate the idea of sales mix and how to measure the breakeven point in a sales mix
Training Course Content
Module 1: Introduction to Cost Accounting
- Definition of terms
- Benefits of cost accounting
- Types of costs – Fixed costs – Variable costs – Direct costs – Operating costs
- Classifications of Cost Accounting – Activity-based Cost Accounting – Lean Cost Accounting – Standard Cost Accounting – Marginal accounting
- Margin of safety
- Cost volume profit analysis
- Cost terms and purpose
- Financial ratios
Module 2: Fundamentals of Cost Management
- Concept of Cost Management
- Types of Cost Management
- Overview of Traditional Cost Management
- Types of Conventional Cost Management
- Modern Cost Management and Benefits of Contemporary Cost Management
- Comparative analysis of modern and traditional cost management
- Challenges and limitations
Module 3: Fundamentals of Budgeting
- History and definition of terms
- Types of budgets
- Budgeting and costing accounting
- Cash budgets
- Functional budgets
- Cost Accounting and budgeting planning
- Rudiments of budget planning
Module 4: Cost Management for Budgeting Purposes
- Definition of concepts and terminologies
- Determining different costs for different budgeting purposes
- Contributions to margin analysis
- Inventory evaluation and control
- Product costs vs period costs
- The cost-volume-profit evaluation model
- Manufacturing and non-manufacturing costs
Module 5: Types of Costing and Variance Analysis
- Variance analysis and standard costing
- Overhead variance
- Sales variance
- Material cost variance
- Direct labor variance
- Uses of variance analysis
- Variance analysis and budgeting
Module 6: Overview of Traditional Cost Management
- Introduction
- Job costing
- Batch costing
- Process costing
- Employee cost
- Unit costing
- Limitations of traditional Cost Management techniques
Module 7: Sensitivity Analysis and Breakeven Points within Cost Accounting
- Introduction to breakeven points
- Purpose of breakeven points
- Recognizing breakeven points
- Application of breakeven point analysis
- Relevant costs in decision making
- Profit planning and various decision scenarios
- Sensitivity analysis and applications
- Construction of breakeven points
Module 8: The Budgeting Framework and its Significance in the Cost Management Process
- Key concepts and terminologies
- Overview of financial statement – Cash flow – Income statement – Balance sheet
- The value of budgeting in business
- Behavioral Implications of Budgeting
- Merits and demerits
Module 9: Modern Techniques for Cost Management
- Pareto analysis
- Value engineering
- Cost control
- Life cycle costing
- Target costing
- Cost reduction
Module 10: Performance Evaluation
- Building block model
- Key performance indicators
- Performance pyramid
- Critical success factors
- Balanced scorecard
- Responsibility accounting
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