Dates for this course

Sorry there are no dates available for this course.

Who should attend:
• Departmental managers preparing operational budgets.
• Accountants developing product costs in collaboration with operations managers.
• Cost analysts reporting on departmental performance.
• Product / Service development mangers to assist them in developing product costs.
• Business planners developing company budgets for product ranges and volumes.
• Sales managers seeking to understand product and customer profitability.
Objectives:
• To describe the sources of information required by a costing system.
• To describe the different types of cost in an organisation.
• To identify fixed and variable costs.
• To demonstrate the use of Break-Even analysis.
• To demonstrate how cost accounting is used to measure performance.
• To explain the use of cost accounting to develop product / service costs.
• To explain the use of costing information for decision-making.

Content:
• The link between financial accounting and cost accounting
• Why cost accounting needs financial and operational information
• Identifying fixed and variable costs, and how they influence decision-making
• Allocation and absorption of overheads into product costs – is it useful?
• Activity-based costing
• How to develop a break-even analysis. How does it help decision-making?
• Developing departmental performance reporting statements
• Variance analysis in departmental reporting
• Contribution analysis as an aid to decision-making – what to offer the market when there are limiting factors which constrain throughput.
• Assessing customer profitability – product contribution less all support costs
• Exercises to define fixed and variable costs, and calculate product / service costs