Learn cost control systems in one week. Job Costing & ABC
What you'll learn
- Students will learn manufacturing costs, job costing system, activity based cost system and standard costs
- Be able to distinguish the three cost categories of a manufacturer.
- Understan how a job cost system is designed.
- Understand Activity based Costing and activity based Management
- Understand how standard costs are used to control operations
- Be able to perform variance analysis.
- A knowledge of financial accounting
This course introduces the accounting required for a manufacturer. A manufacturer has a number of costs different than that of a merchandise company.
You will learn the difference between a direct cost and an indirect cost; a product cost and a period cost; a prime cost and a conversion cost.
You will learn the different inventories of a manufacturer - the raw material inventory, work in process inventory and the finished goods inventory. You will see how manufacturing costs flows between these three inventories.
You will learn the different cost accounting systems - job costing and activity based costing.
Also also you will learn how managers apply a standard cost system and use cost variance analysis to control operations.
Job costing systems determine manufacturing costs systematically by dividing them in overhead, direct material, and direct labor costs and estimating them at their actual value. Manufacturing firms are using job costing to control the use of raw materials, labor hours and equipment by allocating the cost of each customer order separately.
Especially, when a firm’s products are not identical, job costing in an effective tool to allocate the cost of each product and keep track of the order expenses. Nowadays, most businesses are using computerized job costing systems to improve cost control and boost their profitability
What Is Activity-Based Costing (ABC)?
Activity-based costing (ABC) is a costing method that assigns overhead and indirect costs to related products and services. This accounting method of costing recognizes the relationship between costs, overhead activities, and manufactured products, assigning indirect costs to products less arbitrarily than traditional costing methods. However, some indirect costs, such as management and office staff salaries, are difficult to assign to a
Who this course is for:
- Business students and anyone interested in cost accounting management systems.
- Engineering students interested in the operations of a manufacturer.
I am a Professor of Accounting with over thirty-five years experience teaching accounting to college students, undergraduate and MBA university students as well as CMA candidates seeking to earn their Professional Certified Management Accountant Designation.
I achieved my Certified Management Accountant Designation 40 years ago. With that I then earned my Masters of Business Administration degree and later a PHD in accounting.
I have developed and will continue to develop a number of courses in both Financial Accounting and Management Accounting for you - a college or university student (or even a secondary student) to help you to achieve the best result in your undergraduate accounting course. If you get an "A" from me I guarantee you will get an "A" from your accounting prof.
For Graduate students, I have a course to prepare those of you who do not have a business degree for the Masters of Business Administration. Also I have a course at the masters level called Managerial Accounting.
For CMA Candidates, I have courses to prepare you to successfully pass their Certified Management Accounting Exams offered by Institute of Management Accountants.