Day One
- Introduction and objectives of the course
- The need for cost control and cost management
- The use of cost information in pricing decisions
- Cost concepts
- General cost classifications
- Product costs vs period costs
- Cost behavior - fixed, variable and mixed costs
- Direct and indirect costs
- Opportunity cost and sunk cost
- The relevant range concept
- Estimating costs and predicting cost behaviour: high-low method, regression analysis
- Summary
Day Two
- Job costing
- Direct materials
- Direct labour
- Manufacturing overhead
- Estimating predetermined overhead rates
- Job cost sheets
- Flow of costs within a job costing environment
- Process costing
- Similarities and differences to Job Costing
- Flow of costs within a process costing environment
- Equivalent units of production
- Preparing a production report
- Processes, activities, resource consumption and the firm value chain
- Summary
Day Three
- Cost Volume Profit (CVP) analysis
- Contribution margin concept
- Contribution margin ratio
- Break-even analysis
- Target profit calculations
- The margin of safety
- Operating leverage and profit performance
- Sales mix considerations
- Variable vs Absorption costing
- Income comparisons
- Effect of changes in production on profit
- Cost of Quality (COQ)
- Summary
Day Four
- Activity Based Costing (ABC)
- Comparisons with traditional costing
- Designing an ABC system
- The mechanics of ABC
- Budgeting
- Purpose and use of budgeting
- Approaches to budgeting: incremental vs
- zero-based budgeting
- Preparing a budget
- The master budget
- Sales budget
- Production budget
- Direct materials budget
- Direct labour budget
- Manufacturing overhead budget
- The cash budget
- Summary
Day Five
- Standard costing
- What is it?
- Setting standards
- Types of variances
- Variance analysis
- Target costing and reverse engin
- The Balanced Scorecard and Perfo
- Measurement
- Strategy and the Balanced Scorec
- The four firm dimensions
- Costing human capital
- Summary and close of course