Advanced Cost and Management Accounting Course

Why select this training course?

Cost accounting assists organizations in determining the costs of goods, projects, and processes, which reveals where a firm earns and loses money. Cost and management accounting offers managers the data and analysis reports they need to make choices that will result in long-term profitability and growth. Managerial accounting involves several aspects of accounting aimed at enhancing the quality of the information provided to management on firm operating measures. A company’s internal operations would be incomplete without management accounting. The importance of Cost and Management Accounting in today’s highly competitive company climate has expanded.

What is cost and management accounting?

Management accounting prepares financial reports for higher management to utilize in strategic company decisions and operational efficiency assessments. Cost accounting in management accounting analyses all expenses, from raw materials to completed items and overhead fees. The data may help managers identify the most profitable goods, divisions, and services and prioritize those that demand the most attention.

What role do cost and management accountants perform in an organization?

Management accountants play an important role in achieving organizational goals. They strive for the company’s continued growth by seeking new avenues of value creation for its goods and services. They accomplish this by providing the company’s top brass with the hard evidence they need to make prudent choices that save costs and boost profits. The “why” underlying financial reports is something that management accountants dig into and explain.

The Advanced Cost and Management Accounting Training Course by Rcademy focuses on discussing tools and techniques for maximizing a company’s profits. It discusses well thought and known strategies to manage the finances and costs of an organization. Rcademy has created a comprehensive theoretical approach that will aid in profoundly understanding the practical issues that exist and the ones that the participants can face in their future work. The Course has been designed to cover accounting fundamentals and core principles to prepare its participants for the job market. Some of the highlights of this training course will include standard costing, different costing systems, activities based on costing, marginal costing, and budgeting. In addition, the program will entail theoretical applications for better decision-making.

Who should attend?

The Advanced Cost and Management Accounting Training Course by Rcademy is suitable for professionals from diverse backgrounds:

• Departmental heads, general managers
• Project managers, product managers, and team leaders
• Quantitative finance officers
• Economic policy creators
• Strategic planners
• Procurement officers
• Expenditure committee members
• Financial sector managers
• Accountants
• Professionals interested in switching careers
• Entrepreneurs and start-up founders

What are the course objectives?

The main objectives of The Advanced Cost and Management Accounting Training Course by Rcademy are to enable participants to:

• Calculate, discuss, and explain performance measurement metrics
• Understand how and why an organization’s products cost, services costs, and processes occur
• Explain the importance of costing systems
• Prepare financial reports depicting crucial information for internal management
• Identify and determine variance for sales, variable overheads, materials, fixed overheads, labor, marginal approaches, and absorption
• Be able to calculate the cost for joint and by-product, service costs, process costs
• Understand the principles of standard costing
• Discuss the causes of variances
• Enhance the financial decision-making
• Estimate revenue and costs with different forecasting methods

How will this course be presented?

This training course will be presented using well-designed and test methods that have been shown to succeed in teaching professionals and impart practical skills. Methods include:

• Interactive sessions
• Presentations and group discussions
• Case studies and management games
• Problem-solving sessions

Facilitators of this training course are experienced in their domain and teaching areas. Therefore, the methods will ensure participants gain practical knowledge and skills to solve real-world problems.

What are the topics covered?

Module 1: Introduction to Advanced Cost and Management Accounting

• Types of Accounting and their application
• Methods and techniques of costing
• Installation of costing system
• Management evolution, scope, meaning, and objective
• Cost center and cost unit
• Cost accounting evolution, meaning, scope, and Objective
• Conflicts in profit versus value maximization principle
• Practical difficulties in installing a costing system
• Concepts of costs, elements of cost, and cost classifications
• Tools, methods, and Techniques of management accounting

Module 2: Understanding Costing Systems

• Service costing
  – Unit costing
  – Identification of cost unit
  – Features and application
  – Cost control and determination
• Job costing
  – Collecting direct costs
  – Job cost cards
  – Allocation of overheads
  – Importance of job costing
• Process costing
  – Joint products
  – Process loss
  – Features and scope
  – Inter-process profit
  – Abnormal losses
  – Importance of process costing
  – Equivalent units
  – Abnormal gain
• Batch costing
  – Applications
  – Features
• Unit and output costing
• Contract costing
  – Accounting for material
  – Contract profit
  – Escalation clause
  – The distinction between job and contract costing
  – Accounting entries
  – Retention money
  – Progress payment

Module 3: Labour Cost

• Timekeeping and booking
• Efficiency rating procedures
• Meaning and classification of labor costs
• Remuneration systems and incentive schemes
• Accounting and control of labor costs
• Attendance and payroll
• Idle time
• Time recording
• Labor costs
• Overtime

Module 4: Marginal Costing

• P/V ratio and its significance
• Difference between marginal costing
• Breakeven analysis
• Absorption
• Stock valuation
• Income measurement under marginal costing
• Cost-volume-profit analysis

Module 5: Budgetary Control and Budgeting

• Zero base budgeting
• Fixed and flexible budgets
• Program and performance budgeting
• Preparation and monitoring of various types of budgets
• Budget concept and manual
• Budgetary control systems
  – Installations
  – Advantages
  – Limitation
• Understanding budgets

Module 6: Interpretation and Analysis of Financial Statements

• Fund flow statement
• Recent trends in presenting financial statements
• Cash flow statement
• Financial statements
  – Limitations
  – Nature
  – Importance
  – Objectives
  – Attributes
• Is there any difference between different cash flow statements?
• Ratio analysis
  – Advantages
  – Uses
  – Limitations
  – Classifications
• Management reporting

Module 7: Standard Procedures in Costing

• Variance reporting to management
• Various types of standards
• Benchmarking for the setting of standards
• Definition, applications, and Significance
• Variance analysis for materials
• Installation of a standard costing system for material
• Accounting treatment of variances
• Labor and overhead

Module 8: Cost Accounting Records and Cost Audit

• Cost auditor
  – Responsibilities
  – Appointments
  – Rights
• Implementing authorities of cost audit
• Nature and scope of cost audit
• Cost audit report
• Cost accounting records and cost audit
• Performance measurement
• Perspectives of the balanced scorecard

Module 9: Activity-Based Costing (ABC)

• Uses and limitations
• Elements and steps involved
• Characteristics, meaning, and Importance
• ABC vs Traditional costing

Module 10: Overheads and Direct Expenses

• Preparation of cost sheet
• Overheads
  – Collection and classification of functional analysis
  – meaning
  – Research and development
  – Selling
  – Nature
  – Distribution
  – Administration
• Direct expenses
  – Treatment of direct and indirect expenses
  – Meaning
  – Collection
  – Nature
  – Classification