FA & Costing Models

  1. Cost Accounting Introduction
  • Definition of Cost Accounting
  • Classifications by Function
  • Classifications by Cost Behaviour
  • Classifications by Assignment

 

  1. Cost System – Absorption Costing
  • Production Cost vs Period Cost
  • Calculate Overhead Absorption Rate
  • Under & Overabsorption Variance
  • Case: Cost Sheet for Absorption Costing

 

  1. Cost System – Marginal Costing
  • Terms of Marginal Costing
  • Calculate Contribution Per Unit
  • Case: Cost sheet for Marginal Costing

 

  1. Cost System – ABC Costing
  • Definition of Cost Pool & Cost Drivers
  • Calculate Overhead Absorption Rate (OAR)
  • Advantages of ABC
  • Disadvantages of ABC
  • Case: Absorption Cost vs ABC Costing

 

  1. Cost for Service Provided
  • Cost Object for Service
  • Case: Costing Models for Costing Company

 

  1. Standard Costing & Variance Analysis
  • Procedures for Standard Costing
  • Why is Standard Costing Used?
  • Ideal versus Practical Standards
  • Problems with Standard Costing System

 

  1. Cost Variance Analysis
  • Material Usage Variance & Price Variance
  • Material Yield Variance
  • Material Mix Variance
  • Case: Material Expenses Variance Analysis
  • Labour Efficiency Variance, Labour Price Variance and Excess Idle Time Variance
  • Case: Labour Expenses Variance Analysis
  • Overhead Efficiency Variance and Expenditure Variance
  • Overhead Capacity Variance and Efficiency Variance
  • Case: Fixed Overhead Variance Analysis
  • Case: Variable Overhead Variance Analysis

 

  1. Inventory Valuation
  • FIFO
  • LIFO
  • WACC
  • Case: Inventory FIFO Model

 

  1. CVP (Cost-Volume-Profit ) Analysis
  • Case: Break-Even Point
  • Use BEP in New Projects Review
  • Margin of Safety
  • Target Profits
  • Case: CVP Analysis with Step Cost
  • Case: CVP Analysis with Product Mix Change

 

  1. Cost Management – Process Improvements
  • Case: Identify Bottleneck in Process
  • Case: Calculate Idle Time
  • Case: Calculate Capacity Utilisation Ratio

 

  1. Cost Management – Product Mix Decisions
  • Case: Product Mix Decisions Under One Constraint
  • Case: Product Mix Decisions Under Multi – Constraints

 

  1. Cost Management – Economic Order Quantity (EOQ)
  • Calculate Economic Order Quantity (EOQ)
  • Case: EOQ – Lead Time
  • Case: EOQ – Purchase Discount

 

  1. Cost Management – Short – Term Decisions
  • Relevant Revenue & Cost
  • Case: Buy or Rent