Anyone who wants to make informed, fact-based decisions that are key to the success of an organization will benefit from this class. This course can benefit accountants in addition to business decision makers. Managers within an organization can use managerial accounting as a basis for making informed, fact-based decisions. This course will cover managerial accounting concepts.
The course allows participants to become familiar with or brush up on concepts used to categorize costs, compares absorption costing to variable costing, and provides analysis of company performance for various business scenarios. This course provides business managers with the tools and techniques they could use to analyze company performance as well as categorize, and evaluate company product costs to make informed product decisions.
Upon successful completion of this course participant should be able to be complete the following objectives:
- Recognize the fixed and variable classifications of costs along with the technique of breakeven (cost volume profit) analysis for companies with a single product as well as companies with multiple products.
- Identify the differences between absorption costing and variable costing in addition to techniques for determining what costs should be product costs under the absorption and variable costing methods.
- Properly identify the Income Statements for both absorption and variable costing methods as along with the differences between both methods.
- Discuss the three types of relevant costs, incremental costs, and avoidable and unavoidable costs.
- Discuss the advantages and disadvantages of decentralized organizations including performance evaluations using cost centers, profit centers and investment centers plus controllable and uncontrollable costs used within the responsibility accounting system.
- Properly identify direct and indirect costs and the allocation of indirect expenses. Including discussing of department income statements and understanding of the allocation of service department costs under the direct, step, and reciprocal methods.
- Discuss investment center performance evaluations and other nonfinancial performance measures.
CPE Credits: 4 CPE for CPAs
Instructional Method: Self-Study
NASBA Field of Study: Accounting
Program Prerequisites: None
Advanced Preparation: None
Revision Date: March 20, 2023