ACCT6002 – Book- Cost Accounting: A Managerial Emphasis (163)

  1. Objectives
    1. Read, practices, Log & Learn
  2. Contents – brief
    1. The Manager and Management Accounting
    2. And Introduction to Cost Terms and Purposes
    3. Cos-Volume-Profit Analysis
    4. Job Costing
    5. Activity-based Costing and Activity-Based Management
    6. Master Budget and Responsibility Accounting
    7. Flexible Budgets, Direct-Cost Variances, and Management Control
    8. Flexible Budgets, Overhead Cost Variances, and Management Control
    9. Inventory Costing and Capacity Analysis
    10. Determining How Costs Behave
    11. Decision Making and Relevant Information
    12. Strategy, Balanced Scorecard, and Strategic Profitability Analysis
    13. Pricing Decisions and Cost Management
    14. Cost Allocation, Customer-Profitability Analysis, and Sales-Variance Analysis
    15. Allocation of Support-Department Costs, Common Costs, and Revenues
    16. Cost Allocation: Joint Products and Byproducts
    17. Process Costing
    18. Spoilage, Rework, and Scrap
    19. Balanced Scorecard: Quality and Time
    20. Inventory Management, Just-in-Time, and Simplified Costing Methods
    21. Capital Budgeting and Costing Analysis
    22. Management Control Systems, Transfer Pricing, and Multinational Considerations
    23. Performance Measurement, Compensation, and Multinational Considerations
  3. Contents – Detailed
    1. The Manager and Management Accounting – L1
      1. Learning objectives
        1. Distinguish financial accounting from management accounting;
        2. Understand how management accountants help firms make strategic decisions;
        3. Describe the set of business functions in the value chain and identify the dimensions of performance that customers are expecting of companies;
        4. Explain the five-step decision-making process and its role in management accounting
        5. Describe three guidelines management accountants follow in supporting managers
        6. Understand how management accounting fits into an organization’s structure
        7. Understand what professional ethics mean to management accountants
      2. Chapter contents
      3. Follow-ups
    2. An Introduction to Cost Terms and Purposes – L1
      1. Chapter Objectives
        1. Define and illustrate a cost object
        2. Distinguish between direct costs and indirect costs
        3. Explain variable costs and fixed
        4. Interpret unit costs cautiously
        5. Distinguish inventoriable costs from period costs
        6. Explain why product costs are computed in different ways for different purposes
        7. Describe a framework for cost accounting and cost management
      2. Chapter contents
      3. Follow-ups
    3. Cost-Volume-Profit Analysis – L4
      1. Chapter Objectives
        1. Explain the features of cost-volume-profit (CVP) analysis
        2. Determine the breakeven point and output needed to achieve a target operating income
        3. Understand how income taxes affect CVP analysis
        4. Explain how managers use CVP analysis to make decisions
        5. Explain how sensitivity analysis helps managers cope with uncertainty
        6. Use CVP analysis to plan variable and fixed costs
        7. Apply CVP analysis to a company producing multiple products
        8. Apply CVP analysis in service and not-for-profit organizations
        9. Distinguish contribution margin from gross margin
      2. Chapter contents
      3. Follow-ups
    4. Job Costing – L2
      1. Chapter Objectives
        1. Describe the building -block concepts of costing systems
        2. Distinguish job costing from process costing
        3. Describe the approaches to evaluating and implementing job-costing systems
        4. Outline the seven-step approach to normal costing
        5. Track the flow of costs in a job-costing system
        6. Dispose of under- or over-allocated manufacturing overhead costs at the end of the fiscal year using alternative methods
        7. Understand variations from normal costing
      2. Chapter contents
      3. Follow-ups
    5. Activity-based Costing and Activity-Based Management – L2
      1. Chapter Objectives
        1. Explain how broad averaging undercosts and overcosts products or services
        2. Present three guidelines for refining a costing system
        3. Distinguish between simple and activity-based costing (ABC) systems
        4. Describe a four-part cost hierarchy
        5. Cost products or services using activity-based costing
        6. Evaluate the benefits and costs of implementing activity-based costing systems
        7. Explain how managers use activity-based costing systems in activity-based management
        8. Compare activity-based costing systems and department costing systems
      2. Chapter contents
      3. Follow-ups
    6. Master Budget and Responsibility Accounting – L3
      1. Chapter Objectives
        1. Describe the master budget and explain its benefits
        2. Describe the advantages of budgets
        3. Prepare the operating budget and its supporting schedules
        4. Use computer-based financial planning models for sensitivity analysis
        5. Describe responsibility centers and responsibility accounting
        6. Recognize the human aspects of budgeting
        7. Appreciate the special challenges of budgeting in multinational companies (MNCs)
      2. Chapter contents
      3. Follow-ups
    7. Flexible Budgets, Direct-Cost Variances, and Management Control – L3
      1. Chapter Objectives
        1. Understand static budgets and static-budget variances
        2. Examine the concept of a flexible budget and learn how to develop it
        3. Calculate flexible-budget variances and sales-volume variances
        4. Explain why standard costs are often used in variance analysis
        5. Compute price variances and efficiency variances for direct-cost categories
        6. Understand how managers use variances
        7. Describe benchmarking and explain it role in cost management
      2. Chapter contents
      3. Follow-ups
    8. Flexible Budgets, Overhead Cost Variances, and Management Control – L3
      1. Chapter Objectives
        1. Explain the similarities and differences in planning variable overhead costs and fixed overhead costs
        2. Develop budgeted variable overhead cost rates and budgeted fixed overhead cost rates
        3. Compute the variable overhead flexible-budget variance, the variable overhead efficiency variance, and the variable overhead spending variance
        4. Compute the fixed overhead flexible-budget variance, the fixed overhead spending variance, and the fixed overhead production-volume variance
        5. Show how the 4-variance analysis approach reconciles the actual overhead incurred with the overhead amounts allocated during the period
        6. Explain the relationship between the sales-volume variance and the production-volume variance
        7. Calculate variances in activity-based costing
        8. Examine the use of overhead variances in non-manufacturing settings
      2. Chapter contents
      3. Follow-ups
    9. Inventory Costing and Capacity Analysis
      1. Identify what distinguishes
    10. Determining How Costs Behave
    11. Decision Making and Relevant Information
    12. Strategy, Balanced Scorecard, and Strategic Profitability Analysis
    13. Pricing Decisions and Cost Management
    14. Cost Allocation, Customer-Profitability Analysis, and Sales-Variance Analysis
    15. Allocation of Support-Department Costs, Common Costs, and Revenues
    16. Cost Allocation: Joint Products and Byproducts
    17. Process Costing
    18. Spoilage, Rework, and Scrap
    19. Balanced Scorecard: Quality and Time
    20. Inventory Management, Just-in-Time, and Simplified Costing Methods
    21. Capital Budgeting and Costing Analysis
    22. Management Control Systems, Transfer Pricing, and Multinational Considerations
    23. Performance Measurement, Compensation, and Multinational Considerations
  4. References
    1. Institutes of Management Accountants (IMA). https://www.imanet.org/cma-certification?ssopc=1
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ACCT6002 – Book- Cost Accounting: A Managerial Emphasis (163)

Study Log

  1. Objectives
    1. Develop self-adapting learning model
  2. Practices
    1. Summarizing and typing Contents
    2. Application in real life
    3. Adaptive to changes and improvements
    4. Sharing and teaching others
  3. References
Study Log