...At the end of the course, they are expected to have learnt the methodology and techniques for application of cost and managerial accounting and information in the formation of policies and in the planning and control of the operations of the organization. The course covers the nature of managerial accounting; activity costing; marginal costing; standard costing, etc. 2. Course Duration The course will have 45 sessions of 60minutes duration. 3. Course Contents Assignment of sessions to the modules of course is as follows: Module No. | Modules/ Sub modules | Sessions | Marks (Uni. Exam) | I | Cost Management and Cost EstimationCost and Management Accounting OverviewVarious Cost Concepts. Cost Estimation approaches, tools and techniques | 9 | 20 | II | Cost allocation and Job/ batch CostingCost Allocation, Activity Based and Target CostingJob and Batch Costing Introduction to the concept of operating costs | 9 | 20 | III | Costing MethodsOperating Costing. Process Costing and Joint and By product Costing. | 9 | 20 | IV | Management ApplicationsMarginal (Variable) Costing and Absorption Costing Decision Involving Alternative Choices and Pricing DecisionsMake-or-Buy | 9 | 20 | V | Planning, Control and Decision MakingBudgeting and Budgetary Control SystemStandard Costing and Variance AnalysisContemporary Issues like Kaizen Costing, Target Costing, Life Cycle Costing, and Cost Audit and Cost Accounting Standards | 9 | 20 | 4. Teaching Pedagogy: ...
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... Lauri Koskela and Mohan Sinwardena, the term of cost management is not a well defined term. It’s built on both cost accounting and management accounting, but goes beyond these two terms (P. Agrawal and Mehra 1998). For Brinker (1996) defines it as a set of techniques and methods for controlling and improving a company’s activities and processes, its products and services. In addition, Maskel (2009) also described that the cost and management accounting is used internally to help the company’s manager control and improve the business. Although there is an accounting standards associated with these tasks, there is no legal requirement to perform these tasks in any particular way or to perform them at all. A company can do as much or as little cost and management accounting as it wishes and it can be done in any way it wants. Furthermore, cost accounting practices are seldom exactly similar in different companies (P. Agrawaland and Mehra 1998). According to text referred, cost management is equally important to all companies, regardless of size. Small companies generally have tighter monetary controls, mainly because of the risk with the failure of as little as one project, but with less sophisticated control techniques. Large companies may have the luxury to spread project losses over several project whereas the small company may have few projects. Cost management is not only “monitoring” of costs and recording perhaps massive quantities of data, but also analyzing the data...
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...Financial management is the efficient as well as effective management of the funds in a motive of accomplishing the goals and the objectives an organization. It comprises of how to rise capital and how to allocate for instance through budgeting. This does not only cater for the long term budget but also the allocation of funds in the short term. In our discussion we are going to focus on various issues such the various methods used in costing, the budgeting formation and formation process, and the different types of budgeting. The attainment of coordination will also be factored since it is key to the success of a business. Task 1 Assessment criteria 1.1 a. Identify and explain the various ways by which cost can be classified discussion the value of costs classification including any weaknesses in your argument In the world of business there are a range of costing methods are actually used by the enterprises in evaluation and the analyzing the cost of production when contrasted with the value of other substitutes. In executing the cost, two principle methods are used. Cost analyses deals with procedure of costing and the job costing order, deals with relationship of expenses incurred in...
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...sufficient next year. A crucial role of managerial accounting is to continually assess how an organization stacks up against the competition. I do agree with the notion of value costing for the 21st Century organizations. Traditional accounting systems distribute indirect costs on the basis of direct labor hours, machine hours, or material costs. This leads to a distorted picture. The costs of products and services must be accurate, or management can be misled. In the last 15 years value costing has been at the forefront for businesses in the 21st century. New cost concepts allocates costs to the things people are doing in companies and assures that these costs are paid by the products that generated them. Virtual enterprise and efficient supply chain management systems will shape the future of these enterprises. Organizations are trying to become agile enterprises with the help of strategic alliances of firms and integration using information technologies. Traditional performance and cost measures are no longer suitable for developing and managing enterprises in the new environment. In order to remain relevant and to add value, cost and performance measures must be designed and systematically evaluated to reduce the often-unnoticed mismatch between strategic goals and operational tactics. Traditional costing systems provide precise, objective, verifiable and good information for external reporting purposes...
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...A Discussion on Cost Behavior in Relation to Financial Statements Name Institution Date SLP Interpreting figures presented on the financial statement has always been a hectic task to the public. A trend analysis assists in the evaluation of the financial presentation of a business over a specific period of time. Periods to be analyzed ranges from months, quarterly, half yearly or between specific years depending on the situation. In accounting, two methods are widely adopted to analyze the income statement and balance sheet trends. The techniques adopted are the horizontal analysis or the vertical analysis. The two analyses help the users of financial information to compare the performance of different companies for specified financial years and evaluate the performance of the companies over a certain period. The two analysis techniques are related in that the reported figures in the balance sheet or income statement are converted into percentages (Fridson, 2002). Horizontal analysis focuses on changes on trends in financial statements variables over a certain period. It compares historical financial data over a number of periods. The application of horizontal analysis helps to present the complex data in the financial statements and judge whether specific components have increased or decreased. In horizontal analysis technique, the base year is extracted from the financial statements and the figure of each component under study is converted to a percentage of the base...
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...INTRODUCTION OF TARGET COSTING Target costing is a system of profit planning and cost management. The required features and performance of the proposed product are established. Then target costing determines the life cycle cost at which the product must be produced, to generate the firm’s desired level of profit. Given the product’s anticipated selling price (Cooper and Slagmulder,1999, p.166). Note that target costing is not a method for product costing , it is a technique for cost management. It was devised in Japan, where it is used widely, particularly in automobile, electrical and equipment-manufacturing industries (Lorino, 1995). With the effect of globalization, it is gradually gaining acceptance in the Western world. EXAMPLE OF TARGET COSTING Let’s assume that the planned selling price of $250 and a planned cost, including upstream and downstream costs, of $200 per unit. The selling price was based on the plan cost per unit plus a planned profit markup of 25% of selling price. If the company had used target costing, the preparation of the life cycle budget and the planned level of profit might have been very different. Let’s say the market research indicated to ACDP that to sell 50 000 units the CD Super would have to be priced at $190. Given this information we can estimate the target cost for CD Super as: Target cost = target selling price – (target profit margin) = $190 – (0.25 X $190) = $142.5 THE TARGET COSTING PROCESS Early in the product planning stage...
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...INTRODUCTION 3. THERORATICAL BACKGROUND 4. DISCUSSION 5. CONCLUSION 6. REFERENCE ABSTRACT WITH KEYWORDS From the last two decades of the 20th Century on, many companies have adopted production strategies that could be termed “lean manufacturing”. Lean team leaders state that traditional costing systems fail to properly assess their operational improvements and therefore ask for new cost accounting methods. The search for a new accounting paradigm has led to important applied research and several accounting methods. With the diversification of customer demand and competition of globalization, mass production is being replaced by lean production. In this background, the traditional accounting system is no longer applicable to lean production, and lean accounting supporting lean production comes into being. This paper introduces the background of lean accounting and the content of lean accounting, gives the measures of implementing lean accounting, finally compares lean accounting with traditional accounting and summarizes obstacles in the process of implementing lean accounting. The research and application of lean accounting will greatly enhance the competitive advantage. It show the state of the art in costing techniques used in companies that adopt lean manufacturing practices. Keywords: Lean manufacturing, Lean accounting, Principle, Practice Tools, Traditional accounting, Activity Based costing and Standard Costing....
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... BRIEF COURSE DESCRIPTION: The aim of the course is to provide an in depth knowledge and understanding of the use of accounting information for internal purposes contrary to the external disclosure focus of the financial accounting. In particular, the objective of the course is to familiarize students with the fundamental concepts of management accounting system, and use of such information for decision making and performance evaluation. COURSE LEARNING OBJECTIVES: The primary objectives of this course are: 1. To develop an understanding of the costing, cost calculation. 2. To develop understanding of application of different techniques of cost allocation. 3. To understand the relationship between cost and volume and application of this in making different decisions. 4. To develop ability to make different decisions by using accounting information. 5. To understand the application of budgeting and standard costing as controlling tool. 6. To apply the different tools of management accounting for performance appraisal. To achieve these objectives, teaching focus will be on conveying the specific concepts and develops analysis capabilities without losing the general management perspective. COURSE MATERIALS: The course packet is ready for you to purchase at the Resource Center. IT IS ESSENTIAL FOR EVERYONE TO PURCHASE THE COURSE PACKET. This...
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...Activity-based costing 7G7QY-NZWKQ-23KRA-RAMQ4 S/N: SPOZ9-2E9IO-AKDRY-LIKEU ZFX1T-5VOMY-ZIT4Y-FHFPD Y30OZ-DNQH7-FRWPW-YYZMA Y5LUM-NFE0Q-GJR2L-5B86I S/N: 4BTJF-DYNIL-LD8CN-MM8X5 S/N: XAGZU-SJ0FO-BDLTK-B3C3V Internet Download Manager 5.17. Sumber: IDM Serial Number ( v.5.12, v.5.14, v.5.14.10, v.5.15.6, v.5.17.3 ) | Herry (at) Blogdetik http://imherry.blogdetik.com/2010/03/26/idm-serial-number-v512-v514-v51410-v5156-v5173/#ixzz1oG9HbVbx Cantumkan Sumber jika anda ingin melakukan COPY PASTE...!!! Under Creative Commons License: Attribution RLDGN-OV9WU-5W589-6VZH1 S/N: HUDWE-UO689-6D27B-YM28M S/N: UK3DV-E0MNW-MLQYX-GENA1 S/N: 398ND-QNAGY-CMMZU-ZPI39 S/N: GZLJY-X50S3-0S20D-NFRF9 S/N: W3J5U-8U66N-D0B9M-54SLM S/N: EC0Q6-QN7UH-5S3JB-YZMEK S/N: UVQW0-X54FE-QW35Q-SNZF5 S/N: FJJTJ-J0FLF-QCVBK-A287M Sumber: IDM Serial Number ( v.5.12, v.5.14, v.5.14.10, v.5.15.6, v.5.17.3 ) | Herry (at) Blogdetik http://imherry.blogdetik.com/2010/03/26/idm-serial-number-v512-v514-v51410-v5156-v5173/#ixzz1oG9SdiAG Cantumkan Sumber jika anda ingin melakukan COPY PASTE...!!! Under Creative Commons License: Attribution The traditional methods of cost allocation, cost apportionment and absorption into products are being challenged by some writers who claim that much information given to management is misleading when these methods of dealing with fixed overheads are used to determine product costs. You are required to explain what is meant by...
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...information for decision making, higher levels of profitability and competitiveness when compared with non- adopting companies. Key Words: Innovative Management Accounting Principles, Profitability, Competitiveness 1. INTRODUCTION The manufacturing environment of the twenty-first century has changed considerably when compared with what existed decades ago. Arising from this development and with the increase in global competition, the need for accurate cost information has become an imperative. Manufacturers worldwide have suddenly realized that the continued use of traditional costing methods which lack the power and efficiency to supply accurate costing information for companies undergoing changes could significantly affect their decision making ability (Khajavi and Nazeni, 2010). Therefore, given the complexities of the modern manufacturing environment, it is argued that management needs a costing system that has the capacity to assist them in...
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...accounting systems and how cost information is applied in an organization’s internal management. Cost accounting systems provide valuable information for managerial planning and control. The first part of this course focuses on how to determine the precise costs an enterprise incurs to make products or deliver services. The second part of this course introduces how managerial accounting helps organizations to evaluate product/customer profitability, improve cost management and create more value. Managers rely on accurate cost information to make a variety of decisions, including product pricing, budgeting, sales mix, inventory management, and employee performance evaluation. The class focuses primarily on lectures, supplemented by case discussions designed to stimulate students’ critical thinking and analytical skills. COURSE OBJECTIVES 1) Demonstrate an understanding of important characteristics and elements of various cost systems. 2) Develop the ability to use cost information to make business decisions and solve management issues. COURSE MATERIALS Textbook: Datar, S. and Rajan, M. 2014. Managerial Accounting, Pearson. Supplemental readings/handouts may be provided as the course proceeds. GRADE DETERMINATION Recitation sessions 10% percentile scale Mid-term exam 25% percentile scale Final exam 25% percentile scale Case study 15% letter scale Final project 25% letter scale GRADING POLICIES...
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...Coverdrive Ltd Case Study: Activity Based Costing Situation At a recent management meeting at Coverdrive Ltd, the members of the senior management team discussed the introduction of a new product to the company’s range of high quality, hand made cricket bats. A major agenda item was pricing. The management accountant, since his appointment, had given much thought to pricing policy and one of his concerns was that of dealing with the recovery of overhead within a full cost pricing policy. The discussion centred around the traditional method currently in use, compared and contrasted with ABC, Activity Based Costing a technique which re-examines the problem that has faced accountants for decades – that of allocation and absorption of overhead. Traditional pricing method has been based upon absorption costing and the treatment of overhead usually followed a set procedure. ( Cost centres are identified and established within the organisation. ( Cost centres may be producing or service centres. ( Wherever possible a direct charge is made to a cost centre ie allocated overhead. ( Where overhead is jointly incurred it is apportioned to the cost centres on an equitable base. ( The overhead cost for the service centre is then transferred to producing centres. ( The total overhead cost for each producing centre is then divided by for example, machine or labour hours per the cost centre. ( An overhead recovery rate results. ( This is then used to...
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...cz Abstract Paper analyses the specifics of the application of Activity-Based Costing method in hospital management. Primary objective of the paper is to outline the methodology of the ABC application in hospitals. First part of the paper analyzes the ways of ABC implementation in published foreign studies. Second part describes the individual steps in ABC application and discusses the differences in the application procedures between the manufacturing and hospital organization. Key words: Healthcare Management, Cost Management, Activity-based costing, Introduction In the last decade, many non-profit and hospital organizations started to face difficulties and challenges in balancing limited resources and costs to provide their demand for services. Due to the introduction of modern medical techniques and medicines and consequent increase of consumed costs, many hospitals are under pressure to adopt more advanced cost management techniques usually utilized only in profit organization sector. Hospital managers frequently seek the advanced techniques, for better understanding of relations between the cost and provided services. One of the key factors of effective company management is ability of accurate estimation of the cost of products. Product costing is an essential economic tool used to quantify the cost of individual interventions carried out. The need for an accurate method of costing in hospital organizations is frequently emphasized by many authors. Gujral et al...
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...Business Graduate Studies Accounting for Managerial Decision Making ACCT 701 56 N/A N/A Yes Basil Chan, John Harris Summer 2013 Geoffrey Prince Summer 2014 Winter 2015 Chairperson/Dean Students are expected to review and understand all areas of the course outline. Retain this course outline for future transfer credit applications. A fee may be charged for additional copies. This course outline is available in alternative formats upon request. ACCT 701 CENTENNIAL COLLEGE Accounting for Managerial Decision Making Course Description This course will introduce the student to the principles of management accounting. Topics include costvolume-profit relationships, relevant costing, performance measurement, and the application of management accounting concepts and techniques to support business decision making. Program Outcomes Successful completion of this and other courses in the program culminates in the achievement of the Vocational Learning Outcomes (program outcomes) set by the Ministry of Training, Colleges and Universities in the Program Standard. The VLOs express the learning a student must reliably demonstrate before graduation. To ensure a meaningful learning experience and to better understand how this course and program prepare graduates for success, students are encouraged to review the Program Standard by visiting http://www.tcu.gov.on.ca/pepg/audiences/colleges/progstan/. For apprenticeship-based programs, visit http://www.collegeoftrades.ca/training-standards...
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...CONTROL TECHNIQUES 1. INTRODUCTION The assignment requires critically analyzing one of the key aspects of managerial organization and making suggestions to improve the current status of the selected organization. Out of the four areas I chose control techniques for this assignment. Management controls have always existed, in order to control the behavior of employees with the purpose of ensuring that organisational objectives are achieved. Many of these controls were accounting controls, such as budgets, standard costs, variance analysis etc. As organisations became more sophisticated, non financial controls were added. These controls included targets such as quality, waste, delivery lead-time, customer satisfaction etc. When other controls, such as those in respect of personnel, information systems, corporate policies, working practices etc. are added, the result is a system of management control, although often the components of the system lead to different behaviors. In his seminal work on the subject, Anthony (1965) defined management control as: “The process by which managers assume that resources are obtained and used effectively and efficiently in the accomplishment of the organisation’s objectives” His classic categorization of control was of three levels; strategic, management and operational which he saw as linked. In his work, management control was seen as the interface between strategic planning and operational control such that management control...
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