Course Objectives.

• Identify the meaning of cost, loss, and waste.
• Distinguish between expense and expenditure, product and period costs, manufacturing and non-manufacturing, direct and indirect costs and fixed and variable costs.
• Understand cost behavior
• Apply absorption ( full) and variable (direct) costing methods
• Apply joint product & by-product costing
• Understand when to apply job order costing and process costing
• Identify the meaning and components of life cycle costing
• Differentiate between plant-wide and departmental overhead Rate
• Understand how to allocate service department costs
• Understand activity based costing approach.
• Understand standard cost approach

Who Can Benefit

• Controllers
•  senior managers
•  Executives and those with expertise in their own fields who need to acquire expertise in cost planning and control

Course Outline

• Cost Terminology
  • Key Cost Concepts: Cost, Loss, and Waste.
  • Expense and Expenditure
  • Product and Period Costs (Inventoriable and Non-inventoriable)
  • Manufacturing and Non-manufacturing
  • Direct and Indirect
  • Fixed and Variable
  • Cost Behavior and Cost-Volume-Profit / Break-Even analysis
• Overhead Allocation
  • Considerations in Measuring & Assigning Overhead
  • Plant-wide and Departmental Overhead Rate
  • Allocation of Service Department Costs
  • Activity Based Costing
  • Undercosting and Overcosting
  • Activities, Drivers, and Activity Measures
  • Advantages/disadvantages of ABC

• Cost Accumulation Systems
  • Absorption ( Full) and Variable ( Direct) Costing
  • Joint product & by-product costing
  • Job Order Costing
  • Process Costing
  • Life Cycle Costing
  • Quality Costing
• Standard Costs and Control
  • What is cost control?
  • Setting Standards
  • Variance analysis
  • Efficiency/price variances
  • Variance Investigation.

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