Cost Management: Accounting and Control - v10 (Course Id 1180)

Accounting - Accounting for Course Id 1180

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).

NASBA QAS - Text - Technical - NASBA Registry - 1180

Chapter 1
Introduction to Cost Management

• Recognize the nature and scope of cost accounting and cost management.
• Distinguish between cost accounting and its related fields such as managerial accounting and financial accounting.
• Identify the three broad purposes for which the manager needs cost information and the roles of the treasury function.
• Identify developments in the cost accounting and cost management discipline with total quality management and business process engineering.

Chapter 2
Cost Classifications, Terminology, and Profit Concepts

• Identify examples of each of the basic cost elements involved in the manufacture of the product.
  
• Distinguish between variable costs and fixed costs and explain the difference in their behavior.
  
• Recognize the difference between direct and indirect costs.
  
• Recognize the usefulness of the contribution approach to income determination and differences between it and the traditional income statement.

Chapter 3
Cost Accounting Systems - Job Order Costing

• Recognize classifications for manufacturing costs.
  
• Identify types of companies that will benefit from process costing and what is involved in process costing.

Chapter 4
Activity-Based Costing

• Recognize the problems associated with traditional overhead costing methods.
  
• Associate different cost drivers with different cost pools.
  
• Recognize activities in the value chain of business function in activity-based management (ABM).

Chapter 5
Cost-Volume-Profit Analysis

• Recognize how the cost-volume-profit analysis is used by management.
  
• Determine how to calculate the sales necessary to break even or to achieve a target income.
  
• Compute weighted-average contribution margins.
  
• Recognize the concept of a margin of safety.

Chapter 6
Analysis of Cost Behavior

• Recognize examples of variable costs, fixed costs, and mixed costs.
  
• Identify methods for estimating the cost-volume formula.

Chapter 7
Budgeting for Profit and Planning

• Identify the major steps in budget preparation.
  
• Determine appropriate budget levels.

Chapter 8
Responsibility Accounting, Standard Costs, and Variances

• Calculate different variances related to manufacturing costs.
  
• Recognize responsibility accounting and the managerial significance of these variances.
  
• Identify the value of the analysis provided by performance reporting.
  
• Recognize the two-way, three-way, and four-way variance analysis for factory overhead.

Chapter 9
Control of Profit Centers

• Recognize how to calculate different variances associated with single and multi-product firms.

Chapter 10
Performance Measurement, Balanced Scorecard, and Transfer Pricing

• Understand how to compute return on investment (ROI) and how changes in sales, expenses, and assets affect the investment center's performance.
  
• Identify how the residual income (RI) differs from ROI in measuring divisional performance.
  
• Identify how companies use the Corporate Balanced Scorecard to evaluate performance.
  
• Recognize the considerations required to determine appropriate transfer prices.

Chapter 11
Nonroutine Decisions and Life-Cycle and Target Costing

• Identify the costs that are relevant for a particular decision.
  
• Recognize attributes in the theory of constraints.
  
• Identify characteristics of the target costing process for a new product.

Chapter 12
Capital Budgeting

• Identify the impact of the time value of money on capital budgeting decisions.
  
• Recognize a number of capital budgeting techniques.

Chapter 13
Capital Budgeting and Income Taxes

• Recognize how income tax factors affect investment decisions.
  
• Identify the different types of depreciation methods.
  
• Recognize the effect of the Modified Accelerated Cost Recovery System (MACRS) on capital budgeting decisions.

Chapter 14
Process Costing, Cost Allocation, and Joint Product Costing

• Recognize how to choose the right system for cost accumulations.
  
• Distinguish between the weighted-average and first-in, first-out (FIFO) process costing methods.
  
• Recognize different methods of allocating service department costs to production department work.

Chapter 15
Total Quality Management and Quality Costs

• Identify how total quality management (TQM) in a manufacturing environment is best exemplified.
  
• Recognize how TQM can work well in a team environment and how quality can be used as a strategic weapon.

Chapter 16
Inventory Management and Just-In-Time

• Recognize the carrying costs and ordering costs associated with inventory management.
  
• Identify the objectives of the basic economic order quantity (EOQ) model.

A Further Look at Costs by Behavior

Types of Fixed Costs – Committed or Discretionary

Analysis of Mixed (Semi-Variable) Costs

Engineering Analysis

Account Analysis

The High - Low Method

Regression Analysis

Regression Statistics

Use of Regression Software

Chapter Summary

Chapter 6 Review Questions

Chapter 7:    Budgeting for Profit and Planning

Learning Objectives

Types of Budgets

Budget Illustration

Financial Modeling: Computer Models for Budgeting

Zero Based Budgeting

Chapter Summary

Chapter 7 Review Questions

Chapter 8:    Responsibility Accounting, Standard Costs, and Variances

Learning Objectives

Responsibility Accounting and Responsibility Center

Standard Costs and Variance Analysis

General Model for Variance Analysis

Flexible Budgets and Performance Reports

Non-Financial Performance Measures

Chapter Summary

Chapter 8 Review Questions

Chapter 9:    Control of Profit Centers

Learning Objectives

Segmental Reporting For Profit Centers

Profit Variance Analysis

Chapter Summary

Chapter 9 Review Questions

Chapter 10:    Performance Measurement, Balanced Scorecard, and Transfer Pricing

Learning Objectives

Rate of Return on Investment (ROI)

Residual Income (RI)

Investment Decisions under ROI and RI

Balanced Scorecard

Performance and Management Compensation Decisions

Transfer Pricing

Chapter Summary

Chapter 10 Review Questions

Chapter 11:    Nonroutine Decisions and Life-Cycle and Target Costing

Learning Objectives

Relevant Costs Defined

Life-Cycle Costs and Target Costing

Chapter Summary

Chapter 11 Review Questions

Chapter 12:    Capital Budgeting

Learning Objectives

What Are the Types of Investment Projects?

What are the Features of Investment Projects?

Understanding the Concept of Time Value of Money

How Do You Measure Investment Value?

Chapter Summary

Financial Tables

Chapter 12 Review Questions

Chapter 13:    Capital Budgeting and Income Taxes

Learning Objectives

How Do Income Taxes Affect Investment Decisions?

The Long and Short of After-Tax Cash Flows

Types of Depreciation Methods

How Does MACRS Affect Investment Decisions?

Chapter Summary

Chapter 13 Review Questions

Chapter 14:    Process Costing, Cost Allocation, and Joint Product Costing

Learning Objectives

Identification of System Problems and Choice of a System

Product Flow

Steps in Process Costing Calculations

Estimating Degree of Completion

Managerial Use of Process Cost Data

Process Costing and Decision Making

Spoilage in General

Cost allocation: Allocation of Service Department Costs to Production Departments

Procedure for Service Department Cost Allocation

Joint Product and Byproduct Costs

Methods of Accounting for Byproduct Costs

Chapter Summary

Chapter 14 Review Questions

Chapter 15:    Total Quality Management and Quality Costs

Learning Objectives

Quality Defined

Total Quality Management

Elements of TQM

Cost of Quality

What Is Quality?

Two Different Views Concerning Optimal Quality Costs

Quality Cost and Performance Reports

Activity-Based Management and Optimal Quality

Chapter Summary

Chapter 15 Review Questions

Chapter 16:   Inventory Management and Just-In-Time

Learning Objectives

Economic Order Point (EOQ) and Reorder Point

Determination of Safety Stock

Chapter Summary

Chapter 16 Review Questions

Glossary