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Management Accounting

$
1800.00
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3 days | 24 academic hours


Training objectives
Training program Day 1
Training program Day 2
Training program Day 3

Training objectives

  • Clearly differentiate between the terms: costs, expenses, and cost of goods sold (COGS)
  • Understand why profits may decline even as the business grows
  • Understand the potential reasons for the deterioration of financial performance while reducing costs
  • Recognize the key difference between cost reduction and cost management
  • Learn how to manage expenses effectively to improve business performance

Training program Day 1

Objectives of Management Accounting and Levels of Decision-Making
  • Objectives of management accounting and levels of decision-making. Specifics of management accounting
  • Cost transformation model according to CGMA (The Chartered Global Management Accountant)
Cost Classification
  • Direct and indirect costs
  • Costs and expenses
  • Fixed and variable costs
Breakeven Analysis for a Single Product and Product Line
  • Breakeven point: how much needs to be sold to cover costs
  • Calculating the target profit point: how much needs to be sold to achieve a specified profit
  • Operating leverage: assessing business risk and sensitivity to market changes – how profit changes with variations in prices and sales volumes
  • Profit planning: identifying the key factors that most significantly impact profitability

Training program Day 2

Costing Methods and Profit Estimation Variances
  • Marginal costing method
  • Full absorption costing method
  • Throughput accounting
  • Activity Based Costing (ABC method)
Cost Accounting Specifics
  • Cost estimation for digital products
  • Accounting for environmental costs
  • Accounting for and allocation of joint costs. Accounting for by-products. Joint products and decisions on further processing
  • Product life cycle costing
  • Target costing – a tool for proactive cost control and cost-saving measures. A strategy for reducing costs during the product design phase

Training program Day 3

Effective Managerial Decisions
  • Decision-making for producing multiple products using the throughput accounting method in the presence of a limiting factor
  • Business scale optimization
  • Accept or reject an order: Determining the minimum acceptable price for a non-standard order
  • Continue or discontinue production of unprofitable products
  • In-house production vs. outsourcing
  • Linear programming and decision-making under resource constraints: graphical method and Solver function
Cost-Based Pricing Strategies
  • Costs considered in pricing
  • Pricing methods: cost-plus pricing, target pricing
  • Transfer pricing: objectives and general rules under different market conditions