Advanced Cost Accounting

Transcription

1 Advanced Cst Accunting H.H. Sheik Sultan Twer (0) Flr Crniche Street Abu Dhabi U.A.E

2 Curse Intrductin: Cst accunting is n lnger just a tactical verhead allcatin functin. It s a tl that can help yu determine true prduct cst infrmatin. In this five-day curse, yu ll learn t incrprate Activity-Based Csting with advanced traditinal csting methdlgies and transfrm yurself int a real strategic partner within yur rganizatin. Curse Objectives: Upn successful cmpletin f this curse, the delegates will be able t: Learn Hw t Perfrm an ABC-Based Prduct and Custmer Prfitability Analysis Effectively Allcate Factry and Crprate Overhead and Prevent Over- r Under-Csting f Prducts Perfrm Capacity Analysis t Ensure Effective Develpment f Plant-Wide Standards Evaluate Variances t Identify the True Cause f Less Than Optimal Perfrmance Imprving prcesses by analyzing the true causes f prduct cst variances Effectively determining jint- and by-prduct csts Assigning service department csts t calculate ttal prduct csts Develping the target cst mdel Transfer pricing and prduct cst determinatin Capacity analysis: understanding the true cst f incremental manufacturing Wh Shuld Attend? This curse is intended fr all CFO s, cntrllers, directrs r managers f finance and ther cst prfessinals with at least tw years f experience, including accunting managers, budget analysts, systems analysts, plant managers, auditrs and financial planners. Curse Outline: THE INTERNATIONAL BUSINESS ENVIRONMENT Discuss the Strategic, Tactical, and Operatinal Aspects f Tday's Glbal Buiness Entity Use the Organizatinal Planning Framewrk t Develp Unique Business Mdels See Hw the Changing Rle f Cst Accunting in the Glbal Business Entity Applies t Yur Organizatin Understand Hw Cst Infrmatin Is Critical as a Decisin Supprt Tl FN257 REV. 001 PAGE 2 OF 7

3 Use the Prduct/Decisin Cycle t Evaluate the Effectiveness f Yur Current Cst Reprting System EVALUATING YOUR COMPANY'S COSTING TECHNIQUES Discuss the Respnsibility Accunting Prcess Understand the "Prfit-Enhancement" Perspective: Lking Beynd Cst Savings Identify the Challenges Facing a Multi-Prduct Cmpany Determine the Challenges Facing the Multinatinal Cmpany View Cst Accunting as a Value-Added Resurce Understand the Needs f the Internal Custmer Determine the Infrmatinal Needs f the Internal Custmer ACTIVITY-BASED COSTING AS AN EFFECTIVE COST ACCOUNTING TOOL Discuss the Thery f Activity-Based Csting (ABC) Use ABC as a Frecasting Tl Define the "Prcess" as Used in ABC Identify the Prducts f a Specific Prcess Prject Cst as a Prduct Rather Than an Entity Define the Elements f Cst Including Activity, Resurce, and Cnsumptin Rates Identify the Key Prcesses in the Cnversin Cycle Identify the Key Activities in Each Prcess Identify the Resurces Cnsumed as Each Activity Is Perfrmed Determine the Cst f Each Activity Prject the Cst f the Activity, Prcess, and Prduct Define the Differences between ABC and GAAP Integrate ABC Cncepts int Traditinal Cst Accunting Systems Use ABC t Develp Cst Standards DEVELOPING STANDARDS AS A TOOL FOR VALUATION AND STRATEGIC DECISION SUPPORT Discuss the Nature and Purpse f Standards Use Standards as a Prcess Management as Well as Financial Management Tl Define Standards in a Manufacturing Envirnment Define Standards in a Service Envirnment Develp Standards fr Tactical Planning: The Budget Develp Standards fr Strategic Planning: The Business Plan Design Standards Develpment t Supprt Prduct Cntinuatin Decisins Establish Standards Develpment t Supprt New Prduct Intrductin Decisins Develp Standards Using ABC Cncepts FN257 REV. 001 PAGE 3 OF 7

4 VARIANCE ANALYSIS AS A PROCESS IMPROVEMENT TOOL: ANALYZING THE TRUE CAUSES OF PRODUCT COST VARIANCES Perfrm Variance Analysis Calculate Material Price and Usage Variances Calculate Material Mix and the Material Yield Variances Calculate Labr Rate and Efficiency Variances Calculate Labr Mix and Labr Yield Variances Calculate Overhead Rate and Efficiency Variances Calculate Sales Vlume, Mix, and Price Variances Calculate the Price Recvery Variance Calculate the Prductivity Variance Calculate Market Share and Size Variance Use Variance Analysis as an peratinal Analysis Tl EFFECTIVE DETERMINATION OF JOINT- AND BY-PRODUCT COSTS Define Jint Prducts Define By-Prducts Determine the Split-Off Pint Identify Separable Csts Determine the Cst Impact f Jint Prducts Calculate the Prper Allcatin f Jint Prduct Csts Discuss the Cst Impact f By-Prducts Analyze the Cst Impact f Scrap and Waste Determine the Cst Impact f Rewrk ASSIGNING SERVICE DEPARTMENT COSTS TO DETERMINE TOTAL PRODUCT COST Define What Cmprises Service Department Csts Identify the Purpse fr Allcatin f Service Department Csts Define the Strategic and Tactical Decisins Supprted by Allcatin f Service Department Csts Develp Allcatin Alternatives fr Distributin f Service Department Csts Using: Direct Allcatin Methd Step-Dwn Allcatin Methd The ABC Cnsumptin Methd Develping the Target Cst Mdel Define Target Csting FN257 REV. 001 PAGE 4 OF 7

5 Identify the Strategic and Tactical Applicatins f Target Csting Prfit Maximizatin Capacity Utilizatin Define the Cmpnents f the Target Csting Mdel Variable Csts (Prduct vs. Prcess) Fixed Csts (Prduct vs. Prcess) Define Scarce Resurces Perfrm a Scarce Resurce Analysis Discuss the Applicatin f Scarce Resurce Analysis as an Integral Part f the Target Csting Mdel Develp Standards Using Target Csting and Scarce Resurce Analysis Analyze Standards Using Target Csting and Scarce Resurce Analysis TRANSFER PRICING AND PRODUCT COST DETERMINATION Define Transfer Pricing Identify the Tax Implicatins fr Off-Shre Manufacturing Discuss the Prduct Pricing Implicatins fr Inter-Divisinal Transfers f Sub-Cmpnents Apply the Impact Of: The Unifrm Tax Cde Sectin 482 FASB 94 Accunting Research Bulletin Ns. 43 and 51 Cmmunicate the Infrmatinal Requirements f the Cst Infrmatin System CASH FLOW AND COST ACCOUNTING Define Cash as the Fuel That Drives the Organizatin Discuss the Difference between Cst and Cash Determine the Impact f Cash Decisins n the Ttal Cst f the Prductin and Overhead Operatins Payable and Receivable Cycles Inventry Levels Recvery f Investments in R&D CAPACITY ANALYSIS: UNDERSTANDING THE TRUE COST OF INCREMENTAL MANUFACTURING Define Capacity Analysis Calculate the Impact f the Weighted Average Cst f Capital (WACC) Develp the Capacity Analysis Mdel Apply the Capacity Analysis Mdel T: FN257 REV. 001 PAGE 5 OF 7

6 Prductin Units Service Units Investment Decisins Prduct and Sales-Related Decisins Scarce Resurce Analysis CUSTOMER PROFITABILITY: THE KEY TO PROFIT ENHANCEMENT Discuss Custmer Prfitability Analysis Develp the Custmer Prfitability Analysis Mdel Define the Infrmatinal Requirements fr the Custmer Prfitability Analysis Mdel Identify the Applicatins fr the Custmer Prfitability Mdel Use with Scarce Resurce Analysis Use with Capacity Analysis Use with Fixed Asset Investment Decisins Use the Custmer Prfitability Mdel Cncept t Supprt Other Decisin Types: Prduct Cntinuance Selectin f Preferred Suppliers Determinatin f Asset Cntinuatin Curse Certificate: Internatinal Center fr Training & Develpment (ICTD) will award an internatinally recgnized certificate(s) fr each delegate n cmpletin f training. Curse Methdlgy: A variety f methdlgies will be used during the curse that includes: (30%) Based n Case Studies (30%) Techniques (30%) Rle Play (10%) Cncepts Pre-test and Pst-test Variety f Learning Methds Lectures Case Studies and Self Questinaires Grup Wrk Discussin Presentatin FN257 REV. 001 PAGE 6 OF 7

7 Curse Fees: T be advised as per the curse lcatin. This rate includes participant s manual, hand-uts, buffet lunch, cffee/tea n arrival, mrning & afternn f each day. Curse Timings: Daily Curse Timings: 08:00-08:20 Mrning Cffee / Tea 08:20-10:00 First Sessin 10:00-10:20 Cffee / Tea / Snacks 10:20-12:20 Secnd Sessin 12:20-13:30 Lunch Break & Prayer Break 13:30-15:00 Last Sessin FN257 REV. 001 PAGE 7 OF 7