Job Order Costing System – Managerial Accounting
What you'll learn
- Remember essential elements of job cost and process cost systems in managerial accounting.
- Understand the importance and methods of cost classification in cost accounting systems.
- Apply the learned concepts to record appropriate journal entries throughout the job costing cycle.
- Analyze the situational appropriateness of job cost systems versus process cost systems in various manufacturing settings.
- Evaluate the effectiveness of predetermined overhead rates in accurately capturing job costs.
- Create comprehensive cost management strategies by leveraging the knowledge of job cost systems.
- Synthesize the various course components to develop a holistic understanding of managerial accounting.
- Interpret the role and significance of critical documents within the job cost system.
- Demonstrate the ability to handle overhead costs, both actual and estimated, within job cost systems.
- Examine the practical relevance and application of key terms related to job cost systems.
- Basic Accounting Knowledge: Familiarity with fundamental accounting principles and terms is essential, as the course will delve into advanced concepts.
- Financial Literacy: Understanding of basic financial concepts will enable students to grasp the course material more effectively.
- Interest in Managerial Accounting: A keen interest in learning more about cost accounting and managerial accounting would be beneficial for students taking this course.
- Desire to Learn: Most importantly, students should come in with an open mind and a willingness to learn new concepts and techniques.
Welcome to the comprehensive course on the Job Cost System and Managerial Accounting. Designed to enable learners to grapple with the complexities of cost accounting in a simplified and structured manner, this course is perfect for anyone seeking to augment their understanding of managerial accounting processes, particularly those revolving around job cost systems.
Starting with an introduction to managerial accounting topics, we delve into the nuanced realm of job cost systems and process cost systems. Recognizing that these two systems form the backbone of manufacturing cost accounting, we undertake a thorough comparative analysis to help you understand when and why a company would employ either of these systems.
We place significant emphasis on the classification of costs, dissecting its importance, and demonstrating various methodologies to classify costs effectively. This understanding is fundamental, as it forms the basis of cost flow in the accounting process within manufacturing companies.
Digging deeper into the job cost system, we traverse the intricate pathways of inventory cost flows. You'll gain insights into the movement of costs associated with raw materials, through work in process and factory overhead, before they culminate in finished goods and are eventually expensed as cost of goods sold.
In addition to theoretical aspects, we explore practical elements of a job cost system by discussing key documents integral to recording cost flows. We tackle overhead costs, a vital yet often misunderstood aspect of job cost systems. By clarifying the concept of actual overhead and estimated overhead applied to jobs, you'll learn to calculate the predetermined overhead rate, a crucial tool for estimating overhead allocations.
A significant portion of the course is dedicated to the practical application of knowledge acquired. We walk you through the recording of journal entries pertaining to costs at various stages of the job cost system. From transferring raw materials to work in process and factory overhead, to managing direct and indirect wages, to closing out finished jobs and recording the sale and costs of finished jobs - you'll be given hands-on exposure to real-world accounting scenarios.
With an emphasis on student interaction, this course also introduces discussion questions aimed at facilitating productive conversations between peers. These discussions offer the opportunity to approach the subject matter from multiple perspectives, enriching your overall learning experience.
Our course comes bundled with valuable resources to reinforce your understanding. We provide downloadable PDF Files for offline reference and preformatted Excel Practice Files to bolster your Excel proficiency. We also include multiple choice and short calculation practice questions to enhance your grasp of the material.
Under the guidance of an experienced instructor, a certified CPA and CGMA, Master of Science in Taxation, Certified Post-Secondary Instructor, and a seasoned Curriculum Development Expert, you are guaranteed a high-quality learning experience. With a wealth of experience in teaching, technical accounting, and software like QuickBooks Pro, your instructor provides an enriching learning environment that combines theory, practicality, and professional wisdom.
Who this course is for:
- Accounting Students: Those studying accounting at a tertiary level, who wish to deepen their understanding of managerial or cost accounting, will find this course particularly useful.
- Business Owners and Entrepreneurs: Business owners who want to understand their company's cost structure in detail and make data-driven decisions to improve profitability would greatly benefit from this course.
- Aspiring Accountants: Individuals considering a career in accounting or finance and want to gain a comprehensive understanding of job cost systems and managerial accounting principles.
- Accounting Professionals: Accountants or financial managers who wish to refresh their knowledge or need a detailed understanding of job cost systems for their professional roles.
- Non-Finance Managers: Managers from non-finance backgrounds who interact with cost data and accounting teams and need a working knowledge of job cost systems
Through working with students from many different schools, Mr. Steele has learned best practices for helping people understand accounting fast. Learning new skills and finding the best way to share knowledge with people who can benefit from it is a passion of his.
Mr. Steele has experience working as a practicing Certified Public Accountant (CPA), an accounting and business instructor, and curriculum developer. He has enjoyed putting together quality tools to improve learning and has been teaching, making instructional resources, and building curriculum since 2009. He has been a practicing CPA since 2005. Mr. Steele is a practicing CPA, has a Certified Post-Secondary Instructor (CPI) credential, a Master of Science in taxation from Golden Gate University, a Bachelor’s Degree in Business Economics with an emphasis in accounting from The University of California Santa Barbara, and a Global Management Accounting Designation (CGMA) from The American Institute of CPA (AICPA).
Mr. Steele has also authored five books that can be found on Amazon or in audiobook format on Audible. He has developed bestselling courses in accounting topics including financial accounting and QuickBooks accounting software.
In addition to working as an accountant, teaching, and developing courses Mr. Steele has helped create an accounting website at accountinginstruction, a YouTube channel called Accounting Instruction, Help, and How Too, and has developed supplemental resources including a Facebook Page, Twitter Page, and Podcasts that can be found on I-tunes, Stitcher, or Soundcloud. Mr. Steele's teaching philosophy is to make content applicable, understandable, and accessible.
Adult learners are looking for application when they learn new skills. In other words, learners want to be able to apply skills in the real world to help their lives. Mr. Steele’s formal accounting education, practical work experience, and substantial teaching experience allow him to create a curriculum that combines traditional accounting education with practical knowledge and application. He accomplishes the goals of making accounting useful and applicable by combining theory with real-world software like Excel and QuickBooks.
Many courses teach QuickBooks data entry or Excel functions but are not providing the real value learners want. Real value is a result of learning technical skills like applications, in conjunction with specific goals, like accounting goals, including being able to interpret the performance of a business.
Mr. Steele makes knowledge understandable by breaking down complex concepts into smaller units with specific objectives and using step by step learning processes to understand each unit. Many accounting textbooks cram way too much information into a course, making it impossible to understand any unit fully. By breaking the content down into digestible chunks, we can move forward much faster.
Mr. Steele also makes use of color association in both presentations and Excel worksheets, a learning tool often overlooked in the accounting field, but one that can vastly improve the speed and comprehension of learning accounting concepts.
The material is also made understandable through the application of concepts learned. Courses will typically demonstrate the accounting concepts and then provide an Excel worksheet or practice problems to work through the concepts covered. The practice problems will be accompanied by an instructional video to work through the problem in step by step format. Excel worksheets will be preformatted, usually including an answer tab that shows the completed problem, and a practice tab where learners can complete the problem along with a step by step presentation video.
Mr. Steele makes learning accounting accessible by making use of technology and partnering with teaching platforms that have a vision of spreading knowledge like Udemy.