Essentials of Cost Accounting Training

Accounting for Labour Costs

• Remuneration Methods:
• Labour and Total Costs
• Capture of Labour Data Costs
• Direct/Indirect Labour Costs

Material Costs

• Importance of Material Costs
• Pricing methods: FIFO, LIFO , AVCO, Replacement, Standard Cost
• Stock Valuation
• Just-in-time

 Absorption Costing

• Definition, Rationale and Importance of Absorption Costing
• Overheads and Allocation
• Absorption Rates
• Cost Units and Cost Centres, Service and Production Departments

 Activity Based Costing

• Importance, definition and framework of ABC
• Short-term and Long-term Variable Overhead Costs
• Advanced Manufacturing Technology (AMT)
• Cost Drivers and Rates

 Marginal Costing

• Contribution, Overheads and Sales Ratios
• Revenue Statements in Marginal Cost Format
• Break-even (CVP) Analysis and Charts
• Safety Margin and Profit Volume Charts

Marginal Costing Short-term Decision Making

• Short-run Decisions: Make or Buy, Single Orders, Shortages, Choices
• Determining Principle Factors
• Opportunity Costs
• Limitations of Marginal Costing in Short-term Decision Making

Planning and Budgeting

• Budgetary Process, Organisational Framework, Budget Committees
• Interrelationships of Budgets, Integrated budgets
• Budgeting, Uncertainty, Sources of Budgetary Data
• Rolling Budgets, Zero-based Budgeting, Activity-based Budgeting

 Standard Costing and Variance Analysis

• Definition of Standard Costs
• Meaning of Variance Analysis
• Variance Elements and Calculation:
• Variance Investigation: Favourable, Adverse, Causes

Capital Investment Appraisal

• Importance and Purpose of Capital Investment Appraisal
• Techniques of Appraisal: ARR, IRR, NPV, payback
• Discounted Cash Flow
• Risk and Uncertainty