Cost accounting
Context and rationale
Cost accounting makes it possible to study a company's economic performance according to the overheads incurred in producing goods or services. It is a decisive steering tool for managers in decision-making.
Cost and margin optimisation programmes are among the priorities of finance departments. Cost accounting is the basic tool for gaining in-depth knowledge of costs and margins, in order to identify areas of performance and non-performance.
This course will enable you to understand the cost accounting approach and to use the different techniques for calculating and analysing costs and margins.
Training objectives
- Mastering the cost accounting approach.
- Using the different techniques for calculating and analysing costs and margins.
- Identifying the activity-based costing method and spotting the method best suited to your company.
- Using the different methods wisely.
Training content
Introduction to the essentials of cost structure in cost accounting
- Understanding management accounting.
- Defining cost structure: understanding the role of this summary.
- Defining key concepts: price, products, expenses and costs.
- How to restate general accounting expenses.
- Reviewing the process of incorporating expenses into costs.
- Learning about the different types of costs.
Measuring cost issues using full costing
- Distinguishing direct and indirect expenses.
- Determining analytical centres (or sections).
- Choosing work units and allocation keys.
- Presenting the indirect expense allocation table.
- Integrating expenses into costs.
- Rational allocation of fixed expenses.
Optimising decisions using partial costing
- Distinguishing fixed and variable expenses.
- Break-even point.
- The direct costing method.
Analysing performance using standard costs
- Determining standards.
- Analysing variances on direct and indirect expenses.
Activity Based Costing (ABC)
- Mastering the principles of activity-based accounting.
- Identifying the activities to analyse.
- Finding and identifying cost drivers.
- Valuing driver costs and ABC costs.
Choosing the costing method suited to your company to optimise decision-making
- Methodology for defining your cost accounting according to your objectives.
- Acting with discernment in designing and using your cost accounting.
Developing the management system
- The implementation stages.
- The key success factors.
Practical work (simulations)
Let's discuss your training needs
Free, no-obligation offer. An adviser will call you back within 48 hours.