|Author :||Jae K. Shim, Ph.D., CPA|
|CPE Credits :||20.0|
|IRS Credits :||0|
|Passing Score :||70%|
|Primary Subject-Field Of Study:||
Accounting - Accounting and Auditing for Course Id 82
Cost Management: Accounting and Control covers the managerial use of accounting, financial, and operating data for planning, control, and decision making. Emphasis is placed on how to manage costs strategically in order to be globally competitive. The course is designed for managers and entrepreneurs who seek continuous improvement (CI) strategies. Topics include analysis of costs; job order and process costing; break-even and contribution analysis; activity-based costing (ABC); balanced scorecard, cost allocation; responsibility accounting; budget for profit planning; short-term decisions; capital budgeting; quality costs and total quality management (TQM); inventory management and just in time (JIT).
|Usage Rank :||0|
|Prerequisites :||Basic math
|Experience Level :||Overview|
|Additional Contents :||Complete, no additional material needed.|
|Advance Preparation :||None.|
|Delivery Method :||Self-Study|
|Intended Participants :||Anyone needing Continuing Professional Education (CPE).|
|Revision Date :||03-Feb-2014|
|NASBA Course Declaration :||Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam.|
|Approved Audience :||
NASBA QAS - NASBA Registry - 82
|Learning Objectives :||
Distinguish between cost accounting and its related fields such as managerial accounting and financial accounting.
Describe the three broad purposes for which the manager needs cost information.
Identify the role of the controller, the treasurer, and the Chief Financial Officer (CFO).
Summarize the role of the Cost Accounting Standards Board (CASB).
Identify some new developments that took place in the cost accounting and cost management discipline over the last two decades.
State four popular certificates that recognize the expertise in the fields of cost/managerial accounting and internal auditingthe Certified Managerial Accountant (CMA), the Certified in Financial Management (CFM), the Certified Internal Auditor (CIA), and the Certified Cost Estimator/Analyst (CCEA).
Define various cost concepts.
Distinguish between variable costs and fixed costs and explain the difference in their behavior.
Explain the difference between the financial statements of a manufacturer and those of a merchandising firm.
Differentiate between the traditional income statement and the contribution income statement and their uses.
Define profit concepts such as contribution margin.
List the components of a job cost sheet.
Prepare journal entries for a job order cost system.
Develop a predetermined overhead rate.
Dispose of overapplied or underapplied overhead.
Describe how activity-based costing (ABC) would enhance product costing accuracy.
Illustrate the two-step procedure involved in activity-based costing.
Associate different cost drivers with different cost pools.
Discuss what activity-based management (ABM) is.
Compute the sales necessary to break even or to achieve a target income.
Prepare break-even and profit-volume charts.
Perform a variety of "what-if" analysis using the contribution approach.
Define and explain margin of safety.
Discuss the impact of a change in sales mix on profitability.
Explain four methods of estimating cost functions: engineering analysis, account analysis, High-Low method, and Least-Squares Regression Method.
List the advantages and disadvantages of the high-low method for developing a cost-volume formula.
Distinguish between committed and discretionary fixed costs.
Develop a formula using the high-low method.
List the advantages and disadvantages of the least-squares method.
Develop a cost-volume formula using the least-squares method.
Utilize a spreadsheet program such as MS Excel to develop the least-squares equation.
Describe various regression statistics such as the coefficient of determination and t-value.
State the need for multiple regression analysis.
Diagram and explain the master budget interrelationships.
Prepare sales, production, cost, and cash budgets.
Develop a pro forma balance sheet and pro forma income statement.
State how budgets aid in planning and control and how a computer-based financial modeling approach may be used in the planning process.
Distinguish between traditional budgeting and zero base budgeting (ZBB).
Distinguish among three types of responsibility centers and see how they are evaluated.
Calculate different types of variances for manufacturing costs--direct materials, direct labor, and manufacturing overhead.
Explain the managerial significance of these variances.
Prepare a flexible budget and explain its advantage over the static budget format.
Calculate and properly interpret the fixed overhead spending and volume variances.
Distinguish among the two-way, three-way, and four-way variance analysis for factory overhead.
Distinguish between direct fixed costs and common fixed costs.
Calculate the segment margin and explain how it differs from the contribution margin.
Prepare a segmental report using the contribution approach.
Analyze changes in profit by calculating profit variances.
Explain how ROI and RI measures affect the division's investment decision.
Outline the basic features of the Corporate Balanced Scorecard.
Establish the right transfer price.
Enumerate the strengths and weaknesses of various transfer prices between segments of an organization.
Decide if an order should be accepted at below the normal selling price.
Determine the bid price on a contract.
Describe an outsourcing decision.
Determine whether to drop or keep a product line or service.
Decide whether further processing of a product is justified.
State why the contribution margin per unit of limited resource is the deciding factor in product mix decisions with limited resources (such as warehouse or display space) and the theory of constraints.
State why a life-cycle costing approach is appropriate for project costing.
Explain the target costing process for a new product.
Discuss the time value of money concept.
Calculate, interpret, and evaluate five capital budgeting techniques.
Select the best mix of projects with a limited capital spending budget.
Calculate after-tax cash flows - initial outlay, differential cash flows, and terminal cash flow.
List and illustrate the types of depreciation methods.
Discuss the effect of Modified Accelerated Cost Recovery System (MACRS) on capital budgeting decisions.
List the types of product flow.
Explain the steps in process costing calculations.
Distinguish between the weighted-average and first-in, first-out (FIFO) process costing methods.
Compute equivalent units of production by both the weighted-average and FIFO methods.
Determine unit costs under both the weighted-average and FIFO methods.
Explain how three methods of allocating service department costs to production departments work.
Account for joint and byproduct costs.
Describe TQM and explain its relationship to quality costs.
Identify and discuss the four types of quality costs.
Explain the difference between the traditional view of acceptable quality level and the zero-defect view.
Prepare four different types of quality performance reports.
Describe the basic economic order quantity (EOQ) model and its assumptions and solve typical problems.
Explain the quantity discount model and solve typical problems.
Explain reorder point models and solve typical problems.
Compare JIT with traditional manufacturing.
List the benefits of JIT.
State the impacts of JIT on cost accounting and cost management.
Demonstrate how JIT manufacturing improves product-costing accuracy.
Cite some successful applications of JIT in U.S. manufacturing firms.
|Course Contents :||
1. Introduction to Cost Management
Part I: Processing Cost Data for Cost Accumulation
2. Cost Classifications, Terminology, and Profit Concepts
3. Cost Accounting Systems Job Order Costing
4. Activity-Based Costing
Part II: Analyzing Cost Data for Planning
5. Cost‑Volume‑Profit Analysis
6. Analysis of Cost Behavior
7. Budgeting for Profit Planning
Part III: Analyzing Cost Data for Control
8. Responsibility Accounting, Standard Costs, and Variances
9. Control of Profit Centers
10. Performance Measurement, Balanced Scorecard, and Transfer Pricing
Part IV: Analyzing Cost Data for Decision Making
11. Nonroutine Decisions and Life-Cycle and Target Costing
12. Capital Budgeting
Table 1 Future Value of $1 = T1(i,n)
Table 2 Future Value of an Annuity of $1 = T2(i,n)
Table 3 Present Value of $1 = T3(i,n)
Table 4 Present Value of an Annuity of $1 = T4(i,n)
13. Capital Budgeting and Income Taxes
Part V: Special Topics
14. Process Costing, Cost Allocation, and Joint Product Costing
15. Total Quality Management and Quality Costs
16. Inventory Management and Just-in-Time