Cost Accounting Training Course Outline

Module One: Introduction to Cost Accounting

  • Uses of Cost Accounting Information
    • Determining Product Costs and Pricing
    • Planning and Control
  • Professional Ethics, CMA Certification, and Corporate Governance
  • Relationship of Cost Accounting to Financial and Management Accounting
    • Costs of Goods Sold
    • Inventories
  • Elements of Manufacturing Costs
    • Direct Materials
    • Direct Labor
    • Factory Overhead
    • Summary of Manufacturing Costs
    • Flow of Costs
  • Illustration of Accounting for Manufacturing Costs
  • Cost Accounting Systems
    • Special Order
    • Continuous or Mass Production
    • Combination of Systems
    • Standard Costing
    • Illustration of a Job Order Cost System
    • Work in Process in the Manufacturing Statement

Module Two: Accounting for Materials

  • Materials Control
    • Physical Control of Materials
    • Controlling the Investment in Materials
  • Materials Control Procedures
    • Materials Control Personnel
    • Control during Procurement
    • Control during Storage and Issuance
    • Computerized Materials Control
  • Accounting for Materials
    • Determining the Cost of Materials Issued
    • Accounting Procedures
  • Just-in-Time Materials Control
    • JIT and Cost Control
    • JIT and Cost Flows
  • Scrap, Spoiled Goods, and Defective Work
    • Scrap Materials
    • Spoiled and Defective Work

Module Three: Accounting for Labor

  • Wage Plans
    • Hourly-Rate Plan
    • Piece-Rate Plan
    • Modified Wage Plans
  • Controlling Labor Cost
    • Labor Time Records
    • Payroll Function
  • Accounting for Labor Costs and Employers’ Payroll Taxes
    • Employers’ Payroll TaxesIllustration of Accounting for Labor Costs
  • Payroll Accrual
  • Special Labor Cost Problems
    • Shift Premium
    • Employee Pension Costs
    • Bonuses
    • Vacation and Holiday Pay
    • Accounting for Bonuses, Vacations, and Holiday Pay

Module Four: Accounting for Factory Overhead

  • Identifying Cost Behavior Patterns
  • Analyzing Semi variable Factory Overhead Costs
    • Observation Method
    • High-Low Method
    • Scattergraph Method
    • Limitations of High-Low and Scattergraph Methods
    • Least-Squares Regression Method
  • Budgeting Factory Overhead Costs
  • Accounting for Actual Factory Overhead
    • Factory Overhead Analysis Spreadsheets
    • Schedule of Fixed Costs
    • General Factory Overhead Expenses
    • Summary of Factory Overhead
  • Distributing Service Department Expenses
  • Applying Factory Overhead to Production
    • Direct Labor Cost Method
    • Direct Labor Hour Method
    • Machine Hour Method
    • Activity-based Costing Method
  • Accounting for Actual and Applied Factory Overhead

Module Five: Process Cost Accounting—General Procedures

  • Comparison of Basic Cost Systems
    • Materials and Labor Costs
    • Factory Overhead Costs
  • Product Cost in a Process Cost System
    • Nondeparttnentalized Factory
    • Departmentalized Factory
  • Work in Process Inventories
  • Cost of Production Summary—One Department, No Beginning Inventory
  • Cost of Production Summary—One Department Beginning Inventory
  • Cost of Production Summary—Multiple Departments, No Beginning Inventory
  • Cost of Production Summary—Multiple Departments, Beginning Inventory
  • Changes in Prior Department’s Unit Transfer Cost

Module Six: Process Cost Accounting—-Additional Procedures: Accounting for Joint Products and By-Products

  • Equivalent Production—Materials Not Uniformly Applied
    • Materials Added at Beginning of Process
    • Materials Added at End of Process
    • Materials Added at Different Stages of Process
  • Units Lost in Production
  • Units Gained in Production
  • Equivalent Production: First-In, First-Out Method
    • FIFO versus Weighted Average-Materials Added at Beginning
    • FIFO versus Weighted Average-Materials Added at End
    • FIFO versus Weighted Average-Pros and Cons
  • Joint Products and By-Products
    • Accounting for Joint Products
    • Accounting for By-Products

Module Seven: The Master Budget and Flexible Budgeting

  • Principles of Budgeting
  • Preparing the Master Budget
    • Sales Budget
    • Production Budget
    • Direct Materials Budget
    • Direct Labor Budget
    • Factory Overhead Budget
    • Cost of Goods Sold Budget
    • Selling and Administrative Expenses Budget
    • Budgeted Income Statement
    • Other Budgets
    • Evaluating Budget Performance
  • Flexible Budgeting
    • Preparing the Flexible Budget
    • Preparing a Performance Report Based on Flexible Budgeting
  • Preparing the Flexible Budget for Factory Overhead
    • Using the Flexible Budget
    • Semi variable Costs
    • Service Department Budgets and Variances
    • Summary of the Budgeting Process

Module Eight: Standard Cost Accounting Materials, Labor, and Factory Overhead

  • Types of Standards
  • Standard Cost Procedures
    • Determination of Standard Costs for Materials and Labor
    • Recording Standard Costs for Materials and Labor
  • Determination of Variances
    • Alternative Method of Recording Materials Cost
  • Accounting for Variances
    • Alternative Method of Recording Materials Cost
    • Disposition of Standard Cost Variances
  • Interpreting Variances
  • Features of a Standard Cost Accounting System
  • Illustration of Standard Cost in a Departmentalized Factory Using Process Costing
  • Analysis of Factory Overhead Standard Cost Variances
  • Two-Variance Method of Analysis

Module Nine: Cost Accounting for Service Businesses, the Balanced Scorecard, and Quality Costs

  • Job Order Costing for Service Businesses
    • Job Cost Sheet for a Service Business
    • Choosing the Cost Allocation Base
    • Tracing Direct Costs to the Job
    • Cost Performance Report
  • Budgeting for Service Businesses
    • The Revenue Budget
    • The Labor Budget
    • The Overhead Budget
    • The Other Direct Expenses Budget
    • The Budgeted Income Statement
  • Activity-Based Costing in a Service Firm
    • Converting Indirect Costs to Direct Costs
    • Multiple Indirect Cost Pools
    • Job Cost Sheet—Activity-Based Costing
  • Allocations Using Simplified Costing versus Activity-Based Costing
  • The Balanced Scorecard and Quality Costs
    • The Four Categories of a Balanced Scorecard
    • Guidelines for a Good Balanced Scorecard
    • The Balanced Scorecard Illustrated
  • Meaning of the Cost of Quality
    • The Four Categories of a Cost of Quality Report
    • Prevention Costs
    • Appraisal Costs
    • Internal Failure Costs
    • External Failure Costs

Module Ten: Cost Analysis for Management Decision Making

  • Variable Costing and Absorption Costing
    • Product Costs versus Period Costs
    • Illustration of Variable and Absorption Costing Methods
  • Merits and Limitations of Variable Costing
  • Segment Reporting for Profitability Analysis
  • Cost-Volume-Profit Analysis
    • Break-Even Analysis
    • Break-Even Chart
    • Break-Even Analysis for Management Decisions
    • Effect of Sales Mix on Break-Even Analysis
  • Contribution Margin Ratio and Margin of Safety
  • Effect of Income Tax on Break-Even Point
  • Differential Analysis
    • Accept or Reject a Special Order
    • Make or Buy
  • Distribution Costs