Introduction
What is Cost and Management Accounting Course? To be successful, business owners and managers must have a good understanding of the revenues and costs of their organization. Furthermore, for better understanding, detailed visibility into profits and losses for every profit center, cost center and location within the business is critical. Cost accounting enables management to accurately account for costs, both variable and fixed, so important for pricing purposes.
With proper cost accounting, the organization can evaluate all strategies within your business, break-even analysis, investment appraisals, level of production and the profitability of products. It also improves the budgeting process and decision-making abilities, as financial decisions are driven by accurate cost estimation.
With an efficient cost accounting system coupled with a robust integrated solution like an ERP, the organization can better plan the company’s financials, manage operating costs, support lean accounting and accurately allocate resources.
This course in Cost and Management Accounting provides an excellent opportunity for participants to acquire the necessary skills required to plan, manage and monitor costs across the organization. Participants will also learn about the budget process and preparation of variance analysis for comparison with the actuals. Working Capital controls and Capital expenditure will also be discussed to cover the entire Balance Sheet.
Course Objectives
On successful completion of Cost and Management Accounting Course, participants shall be able to:
- Understand the fundamentals of Managerial Accounting and how it differs from Financial Accounting
- Use of management reports for planning and monitoring purposes
- Decide the level at which costs need to be captured
- Analyze variances between Actual v/s Budgeted / Previous years’ figures for corrective actions
- Optimize working capital and avoid unnecessary blockage of funds
- Evaluate capital expenditure
Who Should Attend?
- Financial controllers, finance managers, financial systems analysts, senior accountants, and financial accountants
- Management accountants
- General ledger accountants, and assistant accountants
- Accounts receivable accountants, accounts payable accountants, and payroll accountants
- Management and Decision-makers who trust and rely on timely and accurate financial information
- Chief Financial Officers (CFOs)
- Finance directors and strategic planners
Course Outline
Module 1: INTRODUCTION
- Definition of Management Accounting
- Concepts of Management Accounting
- Planning and Budgeting
- Performance Measurement
- Financial Accounting
- Introduction to Cost Accounting
- Understanding Cost Behaviors
Module 2: MANAGEMENT ACCOUNTING
- How does Managerial Accounting Works?
- Objective of Management Accounting
- Difference between Management v/s. Financial Accounts
- Budgets and Forecasts
- Performance Measurements
Module 3: COMPONENTS OF FINANCIAL STATEMENT
- Balance Sheet
- Income & Expenditure Account
- Cash Flow Statement
- Statement of Changes in Equity
- Notes in Financial Statements
Module 4: COST ACCOUNTING
- Cost Classification
- Cost Behavior
- Fixed & Variable Cost
- Marginal & Absorption Costing
- Understanding Break-even Point
- Activity Based Costing
- Standard Costing
Module 5: VARIANCE ANALYSIS
- Price Variance
- Volume Variance
- Mix Variance
- Efficiency Variance
- Practical Example
Module 6: WORKING CAPITAL CONTROL
- Inventory Control
- Accounts Receivable
- Accounts Payable
- Reconciliation of Sub-ledgers
- Other Current Assets & Current Liabilities
- Tax and Deferred Taxation
Module 7: BUDGET PROCESS AND MANAGEMENT
- Preparation of Master Budget
- Fixed v/s Flexible Budgets
- Quarterly Reviews
- Forward Planning
- Budget/ Actual Comparison
- Zero Based Budgets
Module 8: CAPITAL EXPENDITURE
- Capital Investment Appraisal
- Return on Investment
- Payback period
- Net Present Value
- Internal Rate of Return
- Lease or Buy Decisions
- Tax Implications thereof