Managerial and Cost Accounting: A Comprehensive Guide

Name: Managerial and Cost Accounting: A Comprehensive Guide
Rating: 4.4 (2306 reviews)

Unlock Financial Insights, Make Informed Decisions: Optimize Business Performance, Maximize Profitability

Bestseller

Created byRobert (Bob) Steele

Last updated 6/2023

English

What you'll learn

Apply job order costing techniques to allocate costs accurately to specific jobs or projects.
Implement process costing methods to calculate unit costs in continuous production environments.
Analyze cost-volume-profit relationships to assess business profitability and make strategic decisions.
Create comprehensive master budgets, including sales, production, and cash budgets.
Develop flexible budgets to adapt to changing production levels or sales volumes.
Evaluate departmental performance using responsibility accounting systems.
Assess relevant costs for decision-making, considering factors like differential analysis and opportunity costs.
Apply time value of money principles to discounted cash flow analysis and capital budgeting.
Utilize Excel files to practice accounting calculations and enhance spreadsheet proficiency.
Interpret financial statements and reports to evaluate business performance.
Apply critical thinking and problem-solving skills to complex accounting scenarios.
Communicate financial information effectively to stakeholders within an organization.
Apply managerial accounting concepts to real-world business situations.

Course content

75 sections • 386 lectures • 53h 42m total length

10 Managerial Accounting Introduction13:03
Explore how managerial accounting focuses on internal decision making, offering customizable reports for management, in contrast to regulated financial accounting for external users.

Cost Classifications0:56
Explore cost classifications in managerial accounting, including behavior- and function-based classifications, and apply them in a job cost system to track costs from raw materials to cost of goods sold.
20 Cost Classifications9:31
30 Product Costs & Period Costs16:25
Explore product costs and period costs, distinguish direct materials, direct labor, and overhead, and allocate overhead and depreciation to inventory versus selling and administrative expenses.
40 Prime Costs & Conversion Costs5:35
Explain prime costs and conversion costs, including direct materials, direct labor, and overhead, and show their role in inventory, manufacturing costs, and cost systems.

Cost Flows For a Manufacturing Company1:25
explore cost flows in a manufacturing company, tracing the inventory life from raw materials to finished goods and cost of goods sold, and compare job cost and process cost systems.
70 Manufacturing Activities Flow7:51
Explore how manufacturing activities flow from materials to finished goods, tracking direct labor, overhead, and work in process to determine cost of goods manufactured and cost of goods sold.
80 Just In Time (JIT) Manufacturing2:58
Learn how just in time inventory reduces warehousing and obsolescence by building products after a customer order, emphasizing supplier relationships, timely materials, and fast assembly and shipping.

Job Cost Documents and Forms1:43
Explore job cost documents and forms that drive journal entries for materials, work in process, and direct labor. Practice with job cost sheets and Excel problems with instructional videos.
110 Job Cost Sheet12:04
120 Materials Ledger Card & Materials Requisition13:32
Examine how a materials ledger card and requisition form track raw materials from receipt to work in process, through journal entries, to finished goods and cost of goods sold.
Worksheet - 120 Materials Ledger Card Requisition15:00
130 Time Ticket & Labor Journal Entry9:41
Explore how time tickets capture labor costs and post journal entries to work in process within a job cost system, linking direct labor, factory overhead, and inventory to jobs.
Worksheet - 130 Time Ticket and Labor Entry15:31
10 Multiple Choice Questions – Job Cost System7:16

Overhead Costs & Allocation1:10
Explore how overhead costs are defined, recorded, and allocated to jobs using a predetermined overhead rate and an estimate process, with Excel worksheets and step-by-step videos.
140 Overhead Costs14:44
Understand overhead costing: record overhead, set a predetermined rate, allocate estimated overhead to jobs, and adjust for under or over applied overhead while recognizing indirect materials and labor.
Worksheet - 140 Overhead Costs16:13
Record and post factory overhead entries to the general journal and ledger, classify indirect costs into factory overhead, and illustrate allocation to work in process and cost of goods sold.
150 Overhead Allocation Predetermined Overhead Rate14:08
Worksheet - 150 Overhead Allocation14:20
Allocate factory overhead to jobs using a predetermined rate based on direct labor, then journal entries, post to the general ledger and work in process, and balance the trial balance.
160 Overhead Under Applied Over Applied12:50
Worksheet - 160 Under & Over applied Overhead9:18
20 Multiple Choice Questions – Job Cost System7:40

Finished Jobs and Sales Journal Entries1:33
Analyze finished jobs and sales journal entries in a perpetual system, moving costs from work in process to finished goods and to cost of goods sold, using job sheets.
170 Finished Jobs Journal Entry9:42
Move finished jobs from work in process to finished goods inventory using a condensed job cost sheet and a journal entry, allocating direct materials, direct labor, and overhead.
Worksheet - 170 Finished Goods Journal Entry9:19
Record a journal entry to transfer work in process to finished goods, posting through the general journal and ledger to update the trial balance.
180 Sale of Jobs15:09
Record the sale of completed jobs by transferring costs from finished goods to cost of goods sold, supported by work in process and job cost sheets.
Worksheet - 180 Sale of Jobs18:14
Record the sale of completed jobs, post to the general journal and ledger, recognize cost of goods sold against finished goods in a perpetual inventory system with a 30% markup.
30 Multiple Choice Questions – Job Cost System9:10
Short Calculation Questions8:00
Solve short calculation questions in managerial and cost accounting, using t accounts and a 150% direct labor overhead to compute applied overhead and the predetermined overhead rate.

Job Cost System Summary0:43
Explore the job cost system from raw materials to finished goods, reviewing inventory and production costs and linking each stage to cost of goods sold for a holistic view.
190 Cost Flow General Ledger15:17
300 Job cost system Part 111:06
Explore how a 300 job cost system tracks inventory, allocates raw materials, direct labor, and factory overhead to specific jobs, and reconciles work in process with the general ledger.
305 Job cost system Part 213:07
Allocate factory overhead to work in process using last year's numbers, then transfer costs to finished goods and cost of goods sold, adjusting for over or under allocation.
Worksheet - 300 Accounting instructions-Job cost problem part 115:38
Worksheet - 300 Accounting instructions-Job cost problem part 215:43
300 Accounting instructions-Job cost problem part 315:41
300.4 Accounting instructions-Job cost problem part 415:16
Trace job cost transfers from work in progress to finished goods, post sales and cost of goods sold, and adjust overapplied or underapplied factory overhead to close the period.
40 Multiple Choice Questions – Job Cost System12:01
Explore the job cost system through practical multiple-choice scenarios covering direct materials, direct labor, and overhead, with job cost sheets, materials requisition, and payroll entries.
Short Calculation Questions14:22
Compute and apply overhead using a predetermined rate based on direct labor, allocate costs to work in process, and adjust over or under applied overhead to cost of goods sold.

Requirements

Basic understanding of financial accounting principles and concepts.
Familiarity with fundamental accounting equations and journal entries.
Knowledge of financial statements, including the balance sheet, income statement, and statement of cash flows.
Proficiency in basic arithmetic and mathematical calculations.
Comfortable working with spreadsheets, such as Microsoft Excel or Google Sheets.

Description

Welcome to the comprehensive course on Managerial and Cost Accounting! In this course, we will delve deep into the key topics that are essential for understanding and applying managerial accounting principles. Whether you're a student, professional, or business owner, this course will equip you with the necessary skills to make informed and rational business decisions.

Throughout the course, we will cover a wide range of topics based on standardized accounting textbooks used by college undergraduate schools in the United States. Here is a breakdown of each area we will explore:

Job Order Costing:
1. In this section, we will explore the intricacies of job order costing, a method used in industries where products or services are customized or unique. You will learn how to allocate costs to specific jobs or projects, determine the cost of production for each unit, and analyze job order cost sheets. We will discuss key concepts such as direct materials, direct labor, and overhead allocation methods. Additionally, we will examine job costing systems, including job cost records and job cost reports. You will gain a comprehensive understanding of the job order costing process and how it aids in decision-making and cost control.
Process Costing:
1. Process costing is commonly employed in industries with continuous production processes, such as manufacturing and chemical production. In this module, we will delve into the details of process costing systems, including the calculation of equivalent units, allocation of costs to production departments, and preparation of process cost reports. You will gain a solid understanding of the steps involved in calculating unit costs for products produced through continuous processes. We will also discuss concepts like weighted average method and FIFO method in process costing. You will learn how process costing enables businesses to track and manage costs in large-scale production environments.
Cost-Volume-Profit Analysis:
1. Cost-Volume-Profit (CVP) analysis helps businesses understand the relationships between costs, volume, and profit. In this segment, we will cover important CVP analysis techniques, including breakeven analysis, contribution margin analysis, and calculating the margin of safety. You will learn how to use this information to make informed decisions regarding pricing, sales volumes, and profitability. We will explore concepts like variable costs, fixed costs, contribution margin ratio, and target profit analysis. This knowledge will enable you to assess the financial feasibility of business decisions and optimize your company's profitability.
Master Budgets:
1. Master budgets are comprehensive financial plans that provide a roadmap for an organization's operations and financial activities. In this module, we will dive deep into the components of a master budget. You will learn how to prepare sales budgets, production budgets, direct materials budgets, direct labor budgets, manufacturing overhead budgets, and cash budgets. We will discuss the importance of budgeting in planning, controlling, and evaluating business performance. This knowledge will empower you to develop effective budgets and monitor the financial health of your organization.
Flexible Budgets:
1. Flexible budgets are dynamic budgets that adjust based on changes in production levels or sales volumes. In this module, we will discuss the importance of flexible budgets in cost control and performance evaluation. You will learn how to create flexible budgets, analyze variances, and use this information to make strategic business decisions. We will explore concepts like flexible budget formulas, static budget variances, and flexible budget variances. This understanding will enable you to adapt your budgeting process to changing business conditions and enhance your decision-making capabilities.
Responsibility Accounting:
1. Responsibility accounting is a system that assigns responsibility for costs and revenues to specific individuals or departments within an organization. In this section, we will explore different types of responsibility centers, including cost centers, profit centers, and investment centers. You will learn how to evaluate performance and hold individuals accountable using responsibility accounting techniques. We will discuss concepts like controllable costs, traceable costs, and performance reports for responsibility centers. This knowledge will help you allocate costs effectively, evaluate departmental performance, and optimize resource allocation.
Relevant Costs:
1. Relevant costs are future costs that are critical in decision-making processes. In this section, we will examine relevant cost analysis techniques, including differential analysis, opportunity cost analysis, and make-or-buy decisions. You will learn how to identify and analyze relevant costs to make sound choices that maximize profitability and efficiency. We will also discuss concepts like sunk costs, incremental costs, and qualitative factors in decision-making. This understanding will enable you to assess the financial impact of alternative courses of action and make informed business decisions.
Time Value of Money:
1. The time value of money is a fundamental concept that recognizes the importance of the timing of cash flows. In this module, we will delve into discounted cash flow analysis, present value calculations, future value calculations, and capital budgeting decisions. You will gain a solid understanding of the time value of money principles and their application in investment analysis and decision-making. This knowledge will enable you to evaluate investment opportunities, assess their long-term financial implications, and make strategic investment decisions.

By the end of this comprehensive course, you will have gained a deep understanding of managerial and cost accounting principles, enabling you to analyze financial data, control costs, and make informed decisions that drive business success.

Enroll now and take a significant step towards mastering managerial and cost accounting. See you in the course!

(Note: This course does not cover financial accounting topics, but focuses specifically on managerial and cost accounting principles and their applications in business decision-making.)

Who this course is for:

Business owners, entrepreneurs, and managers who need to make informed financial decisions and effectively manage costs in their organizations.
Accounting and finance professionals who want to expand their knowledge and skills in managerial and cost accounting.
Students pursuing degrees or certifications in accounting, finance, business administration, or related fields.
Individuals seeking to advance their careers in roles that involve financial analysis, cost management, or budgeting.
Anyone interested in gaining a deeper understanding of how accounting information is used to support decision-making processes in organizations.

Managerial and Cost Accounting: A Comprehensive Guide

What you'll learn

Explore related topics

Course content

Part One - Managerial Accounting Core Concepts1 lecture • 13min

Part 1 Cost Classifications4 lectures • 32min

Part 1 - Manufacturer’s Financial Statements3 lectures • 13min

Part 1 - Cost Flows for a Manufacturing Company3 lectures • 12min

Part 1 - Job Cost vs Process Cost System2 lectures • 10min

Part 1 - Cost Flows for a Job Cost System2 lectures • 11min

Part 2 - Job Cost Documents and Forms7 lectures • 1hr 15min

Part 2 - Overhead Costs & Allocation8 lectures • 1hr 30min

Part 2 - Finished Jobs and Sales Journal Entries7 lectures • 1hr 11min

Part 2 - Job Cost System Summary10 lectures • 2hr 9min

Requirements

Description

Who this course is for: