MANUFACTURING COSTING FOR NON-COSTING MANAGERS

2 days workshop

INTRODUCTION

The Standard cost accounting seminars can help the senior management as well as the executives in knowing more about the finer aspects of cost accounting and then implementing the same for better productivity as well as profit margins. Real-current problematic costing cases will be analyzed and scenario solutions will be provided under the guidance of Dr. Steven Liew.

Course Objectives                                                                                                                                   
By the end of this course you will be able to:

  1. Understand Product costing systems 

  2. Standard costing and variance analysis

  3. Variance analysis for material, labor and overhead variances 

  4. A deeper learning of the use of the cost accounting methods to optimally utilize the people, materials and the resources.

  5. Understanding of the cost accounting methods that can help in identifying the profitable products 

  6. Understanding Cost Management & Decision Making

  7. Revisit your organization vision & mission to be relevant in today’s competitive environment.

  8. Devise ways to achieve your budget targets

  9. Plan how to achieve optimum profitability under budget constraints

  10. Consider the basis for deciding whether to proceed or reject the project proposal 

METHODOLOGY

Case Study, video & Group Discussion. Real-current problematic costing cases will be analyzed and scenario solutions will be discussed within the workshop.

Who Should Attend

Accountants, accounting managers, cost accountants, cost analysts, budget analysts, systems analysts, auditors and financial planners.

Special Feature: NOTE: Please bring laptop along

PROGRAMME OUTLINE

Day 1

Module 1: Basic Cost Management Concepts 

  • Product Costs, Period Costs and Expenses

  • Manufacturing Costs (Direct Material; Direct Labor; Manufacturing Overhead)

  • Manufacturing Overhead

  • Manufacturing Cost Flows

  • Cost Classifications

  • Prepare income statements for manufacturing organizations

  • Exercise

Module 2: Standard Costing

  • How standard costing is used to help manage costs

  • Two ways to set standards costing

  • Participation in Setting Standards

  • Behavioral Impact of Standard Costing

  • Interaction among Variances

  • Exercise

Module 3: Cost Variance Analysis

  • Model for Variance Analysis

  • Material Variances

  • Labor Variances

  • Significance of Cost Variances

  • Case Study

Module 4: Target Costing and Cost Analysis for Pricing Decisions

  • How Are Prices Set

  • Set prices using cost-plus pricing formulas

  • Return-on-Investment Pricing

  • Target Costing 

  • Exercise

Module 5: Cost Management & Decision Making 

  • Outsourcing or Make-or-Buy Decision

  • Decision to Add or Drop a Product, Service, or Business Unit

  • Relevant Costs of Replacing Equipment

  • Pricing Decisions


Day 2

Module 6: Profit Planning and Activity-Based Budgeting (Exercise)

  • Operational Budget 

  • Financial Budget

Module 7: Linking the Budget to Management Actions

  • What are Essential Considerations Before Preparing the Budgets

  • How to Present a More Accurate & Realistic Budget

  • How to Get Cooperation from Operating Units

  • How to Convince or Find Out Easier Solution for Other Staffs to Understand /Follow on Budget Being Prepared

  • How to Avoid Unexpected Results or Uncertainties

  • How to Measure Performance

  • Discuss the Planning Budgeting Strategies for Management

Module 8: Project Based Budgets (Case Study)

  • Calculation of operating cash flow

  • Calculation of Project payback period, profitability index, IRR & NPV of the project? 

  • Basis for decision on proceeding or rejecting the project proposal 

Module 9: Case Study: Success Story of Cost Reduction

  • How to target saving for your organizatio

Essential of Budgeting & Cash Flow Forecasting

Budgeting & Variance Analysis Modeling for Accountant

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