About Workshop
Cost and management accounting occupies a significant share of professional accounting practices in business organisations. However, as there are no mandatory standard/guidelines in cost accounting, professionals involved in tasks like costing and budgeting find it difficult and time consuming.
This course will enable the participants to develop/review the fundamental and advanced concepts of cost accounting with the spreadsheet (Excel) skills required for becoming efficient cost accountants.
Major learning outcomes of the course are –
Review the key concepts of cost and management accounting;
Develop practical skills on costing products and services;
Conduct break-even analysis for better pricing of products and services;
Gain practical skills on budgeting and budget analysis.
Workshop topics to be covered:
Day 01 – Fundamentals of Cost Accounting, Inventory Valuation and Costing
Session 1: Basic Aspects of Cost Accounting
Understanding the nature of Cost Accounting
Understanding cost units, cost centres and cost objects
Understand classification of costs and fundamental cost behaviour
Analysing and reporting costs using Microsoft Excel
Session 2: Accounting for Inventory Valuation
Introduction to Inventory Valuation
Inventory valuation at cost, LIFO, FIFO and AVCO
Understanding inventory valuation and its effect on Gross Profit
Practical techniques of Inventory valuation using Microsoft Excel
Session 3: Analysing Overheads and Costing Products/Services
Understand overhead costs
Understanding overhead allocation and apportionment
Absorption Costing and Activity Based Costing (ABC)
Practical techniques of Absorption Costing and ABC using Microsoft Excel
Session 4
Review, Exercises and Test
Day 02: Break Even Analysis, Budgeting and Linear Programming
Session 1: Break-even Analysis
Understanding Cost-volume-profit analysis or Break-even Analysis
Identifying margin of safety and contribution to sales
Break-even Charts and Profit-volume Charts
Using Microsoft Excel to Evaluate Proposals using CVP Analysis
Session 2: Budgeting and Standard Costing
Understanding Budgeting Techniques
Sales, Production and Relevant Budgets
Standard costing and Variance Analysis
Prepare budgets and conduct variance analysis using Microsoft Excel
Session 3: Relevant Costing, Decision Making and Linear Programming
Understanding relevant costs of a project/product
Developing profitable product mix
Introduction to Linear Programming
Using Microsoft Excel for Linear Programming and Developing Optimum Product Mix
Session 4
Review, Exercises and Test
Special Feature of the Course
At the end of each session the participants will develop an Excel file that can be used as template for practical cost accounting purposes.
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