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Fundamentals of Cost Accounting

Manufacturers have a multitude of costs that must be included in inventory and cost of goods sold: material, labor, direct variable costs, indirect variable costs and fixed costs. You will learn how to properly identify these costs. Using multiple case studies, this seminar will provide you with detailed information on the various techniques companies have devised to apply all these costs to inventory. Doing so ensures that inventory and cost of goods sold are properly valued for both internal and external users. This seminar provides you with the information you need in deciding how to value inventory and cost of goods sold in your company.

Seminar Number: 01201

4.8
(101 reviews)
  • Live Online
  • At Your Company Location

Course Scheduling & Pricing

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About This Course

Every business decision ultimately shows up in the numbers. The question is whether you understand what those numbers are telling you. This course introduces the concepts behind cost accounting training, helping you analyze production costs and interpret accounting reports with more clarity. If you're looking for a cost accounting course that connects operations to outcomes, this is it. You'll learn to see how your decisions affect profitability, and speak the language of finance more fluently. It's available as a cost accounting online course for those who need flexibility, helping you make better decisions by understanding the math behind them.

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Who Should Attend

This seminar is designed to help manufacturing managers succeed. If you are responsible for the proper costing of inventory and for assessing manufactured product profitability, this is your seminar.

  •   Live Online3 Day(s)
    16.9 CCM, 1.7 CEU, 17 CLP, 20 CPE, 16.9 CTP, 16.9 FP&A, 17 PMU
 
 

Manufacturers have a multitude of costs that must be included in inventory and cost of goods sold: material, labor, direct variable costs, indirect variable costs and fixed costs. You will learn how to properly identify these costs. Using multiple case studies, this seminar will provide you with detailed information on the various techniques companies have devised to apply all these costs to inventory. Doing so ensures that inventory and cost of goods sold are properly valued for both internal and external users. This seminar provides you with the information you need in deciding how to value inventory and cost of goods sold in your company.

  • Classify all inventory costs
  • Create an inventory direct costing system
  • Identify fixed manufacturing costs
  • Apply fixed manufacturing costs to inventory
  • Create a standard costing system and calculate variances
  • Create an Activity Based Costing (ABC) system
  • Use cost-volume-profit analysis to determine break-even points and margins of safety
  • Use relevant costing models for production decisions
  • Job costing procedures
  • Process costing procedures
  • Absorption costing techniques
  • Equivalent units of production calculations
  • Direct costing techniques
  • Standard costing techniques
  • ABC costing techniques
  • Cost-volume-profit analysis
  • Relevant costing techniques for future production decisions

Special Feature

NOTE: Please bring a calculator to this seminar.

Learning Objectives

  • Describe the Fundamental Concepts of Cost Accounting
  • Apply Cost Accounting Methods to Identify Profitable Products and Services
  • Analyze Reports to Make Sound Pricing Decisions
  • Compare Cost Accumulation Systems and Choose the Right One for Your Company
  • Evaluate Results Against Budgets with Greater Accuracy
  • Use Cost Accounting Methods to Optimize the Use of People, Resources, and Materials

Introduction to Cost Accounting

  • Explain the Purpose and Functions of Cost Accounting and Its Relationship to Financial Accounting
  • Create Cost Estimations By Correctly Applying Relevant Cost-Estimation Strategies
  • Define and Categorize Inventoriable Costs

Job-Order Costing and Process Costing

  • Explain the Purpose and Application of Job-Order Costing
  • Explain the Purpose and Application of Process Costing
  • Describe and Calculate Equivalent Units
  • Identify, Define, and Categorize Various Types of Product Costs
  • Correctly Journalize the Costs of Manufacturing Transactions in a Job-Order Costing System
  • Correctly Journalize the Costs of Manufacturing Transactions in a Process Costing System
  • Analyze Overhead Costs and Select the Best Method(s) of Allocating Overhead in a Diverse or Multiproduct Operation
  • Create Costing Reports, Including a Job-Order Cost Sheet and a Cost of Production Report

Joint Product Costing and Byproduct Costing

  • Identify Shared Cost Components Across Product Lines
  • Recognize and Differentiate Between Shared Costs and Separable Costs
  • Determine Correlating Factors for Cost Allocation During Production
  • Calculate Net Realizable Value at Various Production Points
  • Differentiate Between Two Methods of Byproduct Revenue Recognition

Absorption Costing vs. Direct Costing

  • Differentiate Between Absorption and Direct Costing
  • Explain Why Absorption Costing Meets GAAP Requirements While Direct Costing Is Useful for Internal Reporting
  • List the Advantages and Disadvantages of Direct Costing
  • Recognize the Process and Requirement for Establishing a Direct-Costing System
  • Convert a Traditional Income Statement into a Direct Costing Income Statement
  • Reconcile the Differences in Net Income Between the Two Types of Statements By Using the Same Data

Standard Costing and Variance Analysis

  • Explain the Relationship Between Standard Costs, Employee Motivation, and Performance Evaluations
  • Understand the Different Approaches to Setting Standards and Explain the Implications of Each Approach
  • Identify Actions or Situations That Create the Need to Change Standards
  • Assess the Implications of Changing Standards
  • Discover the Reasons for Cost Variances and Make Recommendations to Bring Costs into Better Alignment with Established Standards

Activity-Based Costing (ABC) for Management Control

  • Explain Reasons for Using Activity-Based Costing Instead of Traditional Methods
  • Identify and Assign Costs to Activities
  • Design a Basic Activity-Based Costing System
  • Compare Data Generated By Your Activity-Based Costing System with a Traditional Costing System and Draw Conclusions About the Appropriate Application of Each Method of Costing

Cost-Volume-Profit Analysis and Break-Even Point

  • Identify Fixed, Variable, and Mixed Costs
  • Apply Cost Accounting Formulas to Identify Profitability
  • Explain the Applications and Limitations of Cost-Volume-Profit Analysis
  • Discuss the Use of Contribution Margin in “What If” Analysis
  • Describe Margin of Safety and Its Impact on Decisions to Add Fixed Costs or to Change Cost Structures
  • Create an Income Statement for Use in a Cost-Volume-Profit Analysis That Segregates Costs According to Their Behavior

Relevant Costing and the Contribution Approach to Decision Making

  • Determine Which Costs Are Considered Relevant in a Decision-Making Process
  • Apply Relevant Costing to Evaluate Different Scenarios When Making Decisions
  • Calculate Relevant Costs and Analyze the Implications of Accepting Business at a Special Price
  • Calculate Relevant Costs and Analyze the Implications of Dropping a Product Line or Closing a Facility
  • Calculate Relevant Costs and Analyze Potential Decisions When There Are Limiting Factors of Production

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View a Sample of Our Reviews

4.8

101 reviews

 
Good training. Refreshments of concepts and learned methodologies to better analyze cost-volume-profits.
4
Madeline C.
 
Finance Consultant
 
Industry: Manufacturing
The class was very educational and the instructor knew the material well.
5
Kelly K.
 
Finance Specialist
 
Industry: Manufacturing
The course covered every aspect of cost accounting. It was a great refresher course.
5
Tonjua M.
 
CONTROLLER
 
Industry: Manufacturing, Tires & Rubber
I thought the class was very informative and engaging between participants and instructor.
5
Gina L.
 
Financial Business Manager
 
Industry: Manufacturing
Excellent teacher. Kept class exciting and engaging. Allowed for sharing and questions. Great presentation of material.
5
Rob H.
 
Manager, Cost Accounting & Contracts
 
Industry: Manufacturing

This course is valid for 17 PMUs.

Approved for up to 16.9 FP&A recertification credits by the Association for Financial Professionals at the rate of one credit for each 50 minutes of attendance.

 

American Management Association is accredited by the International Accreditors for Continuing Education and Training (IACET) and is accredited to issue the IACET CEU.

Approved for up to 16.9 CTP recertification credits by the Association for Financial Professionals at the rate of one credit for each 50 minutes of attendance.

 

American Management Association 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. For additional information or for more information regarding administrative policies such as complaints and refunds, please contact Customer Service at 800-262-9699.

Recommended CPE Credit: 20 hours/Basic
Prerequisites: Familiarity with fundamentals of accounting (see seminar #1218)
Advance Preparation: None
Instructional Method: Group Live/Group Internet Based
Field of Study: Technical – Accounting

Live Online Schedule

2 Sessions Available

Frequently Asked Questions

I need a practical cost accounting course to better understand product costs. Is this the right program?

Yes. This course focuses on the fundamentals of cost accounting used in real business environments. You'll learn how to analyze product costs, understand cost allocation methods and evaluate profitability, so you can make better financial and operational decisions.

Is this course appropriate for someone who needs a cost accounting refresher?

Absolutely. Many participants attend as an accounting refresher course to revisit core cost accounting concepts. The program reviews essential principles and shows how they apply to modern manufacturing and operational decision making.

Does this course cover manufacturing cost accounting?

Yes. The seminar is especially valuable for professionals working in manufacturing environments. It explains how to properly cost inventory, understand manufacturing overhead and assess the profitability of manufactured products.

What topics are covered in this cost accounting training program?

This course covers key cost accounting concepts such as cost behavior, cost allocation methods, inventory costing, manufacturing overhead and profitability analysis. You'll gain practical tools for evaluating product costs and supporting financial decision making.

Can this course help non-accounting managers understand cost accounting?

Yes. This cost accounting training is designed for managers who need to understand cost information but may not have a formal accounting background. The course explains financial concepts in a practical way so managers can use cost data to guide operational decisions.

Is this available as a cost accounting online course?

Yes. Fundamentals of Cost Accounting is available in both live online and in-person formats, allowing professionals to participate in the format that works best for their schedule.

I’m struggling to understand how product costs and inventory affect profitability. Will this cost accounting course help?

Yes. This course helps you understand how product costs are calculated and how those costs impact inventory valuation and profitability. You’ll learn the fundamentals of cost accounting used in manufacturing and operational environments, so you can better evaluate product margins, manage costs and make more-informed business decisions.
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