fbpx

Cost Accounting Course

This cost accounting online course is offered by Farhat Lectures. This courses include cost accounting lectures and practice exercises that is best for accounting students and CPA candidates.  Cost accounting is important if you are studying for CPA exam.  The cost accounting topics included in this courses are not limited to the following:

Cost Accounting Course

Cost Accounting Course

  • Introduction to Cost Accounting Course
    Topics covered

    Michael Porter Competitive Strategies, Cost Accountant, Management Functions, IMA.

    Balanced Scoreboard

  • Basic terms and Cost Behavior.
    Topics covered

    Direct material, Direct Labor, Manufacturing Overhead, Period Cost, Product Cost, Indirect Cost, Cost driver, Conversion Cost, Prime cost, Sunk Cost, Mixed Cost, Variable Cost, Fixed Cost, Step Cost

    Cost Volume Profit Analysis
    Topics covered

    What if analysis, CVP Analysis, Contribution Margin, Contribution Margin Ratio, Contribution Margin Percentage, Breakeven point, Break-even point, Break-even Revenue.

    Schedule of Cost of Goods manufactured.
    Topics covered

    Raw Material Used, Direct Material Used, Manufacturing Overhead Cost, Cost of Goods Sold, Finished Goods Iventory.

  • Job Order Costing.
    Topics covered

    Job Cost Sheet, Material Requisition, Control Account, Subsidiary Accounts, Cost flow, Under-applied and Over-applied.

  • Overhead Allocation: Under-applied and Over-applied.
    Topics covered

    Under-applied Overhead, Over-applied Overhead, Predetermined Overhead Rate, Estimated Overhead, POHR, Allocation Base, Cost Driver, Normal Costing System.

  • Process Costing.
    Topics covered

    Weighted Average Method, Equivalent Unit of Production, FIFO Method of Process Costing, Applied Overhead.

  • Activity Based Costing.
    Topics covered

    Example of Activity Based Costing, Cost Pool, Activities cost Pool, Product margin, Traditional Allocation Method, Overhead Allocation.

    Variable Costing and Absorption Costing
    Topics covered

    Absorption costing, common fixed cost, segment margin, variable costing, traceable fixed cost.

    Budgeting Process
    Topics covered

    Cash budget, Master budget, Production budget, sales budget, Manufacturing overhead budget, Direct materials budget, Direct labor budget

    Variance Analysis
    Topics covered

    Labor efficiency variance, Labor rate variance, Materials price variance, Materials quantity variance, Price variance Quantity variance, Standard cost per unit, Standard hours per unit, Variable overhead efficiency variance, Variable overhead rate variance

    Cost Allocation
    Topics covered

    Reciprocal Method, Direct Method, Step Method, Service Department

    Decision Cost: Special Orders
    Topics covered

    Relevant Cost, Irrelevant Cost, Special Order, Idle Capacity

    Joint Product and ByProduct Costings
    Topics covered

    Joint Product, By Product, Byproduct, Relative Sales Value, Net Realizable Value, Split-off Point, Joint Production Cost, Separable Cost.

  • Understanding Cost Accounting

    Cost accounting is used by a company’s internal management team to identify all variable and fixed costs associated with the production process. It will first measure and record these costs individually, then compare input costs to output results to aid in measuring financial performance and making future business decisions. There are many types of costs involved in cost accounting, which are defined below.

    Types of Costs

    • Fixed costs are costs that don’t vary depending on the level of production. These are usually things like the mortgage or lease payment on a building or a piece of equipment that is depreciated at a fixed monthly rate. An increase or decrease in production levels would cause no change in these costs.
    • Variable costs are costs tied to a company’s level of production. For example, a floral shop ramping up their floral arrangement inventory for Valentine’s Day will incur higher costs when it purchases an increased number of flowers from the local nursery or garden center.
    • Operating costs are costs associated with the day-to-day operations of a business. These costs can be either fixed or variable depending on the unique situation.
    • Direct costs are costs specifically related to producing a product. If a coffee roaster spends five hours roasting coffee, the direct costs of the finished product include the labor hours of the roaster and the cost of the coffee beans.
    • Indirect costs are costs that cannot be directly linked to a product. In the coffee roaster example, the energy cost to heat the roaster would be indirect because it is inexact and difficult to trace to individual products.