Reference no: EM133065765

Week 1 Cost concepts
Cost classifications
Calculation of COG manufactured and COGS
High low method

Week 2 Product costing systems- Job costing
Calculate product cost (i.e. pre. OH rate & applied overhead cost)
Accounting for MOH (i.e. adjustment of over/under applied MOH costs)
The cost flow: T-accounts and journal entries

Week 3 Process costing
Calculate product cost with no beginning and ending WIP inventory
Calculate product cost with some beginning and ending WIP inventory (i.e. weighted average method: 4 steps)

Week 4 Service costing
Features of service firms and merchandisers (i.e. retailers and wholesalers)
Value chain for service firms and merchandisers
Corresponding cost systems for different types of service firms

Week 5 Allocation of overhead costs
Allocate overhead costs to products:
1. a plantwide rate
2. departmental rates
Allocate support department costs to production departments:
1. direct method
2. Step-down method (sequence of allocation)
3. Reciprocal method

Week 6 Activity-based costing
Calculate product cost under both conventional costing and ABC
Discuss underlying causes of the difference in product cost under conventional costing and ABC.
Discuss how ABC information can affect management's decision making

Week 7 Cost Volume Profit Analysis
Calculate the break even point (in units and in dollars)
Calculate sales volume required to achieve a target profit (with or without taxes)
Calculate the break even point (in units and in dollars) for multiple products (i.e. weighted average unit contribution margin)
Calculate safety margin and how it can be used in decision making.

Week 8 Information for tactical decision making
How to determine relevant information
Understand the concepts of sunk cost and opportunity cost
How to make tactical decision regarding
1. Accept or reject a special order
2. Make or buy a product
3. Add or delete a product or a department
4. Joint products: sell or process further

Week 9 Joint cost allocation and product mix decisions
How to allocate joint costs: physical units, relative sales value, and net realisable value methods
Product mix decisions
1. with single limited resource: compare the CM per unit of the limited resource;
2. with multiple limited resources: linear programming

Week 10 Budgeting systems
Prepare sales budget
Prepare production budget
Prepare direct material and direct labour budgets
How does a flexible budget differ from a static budget
Discuss the behavioural consequences of budgeting: participative budgeting and budgetary slack

Week 11 Standard costs for control
Calculation of Direct material quantity and price variances Direct labour efficiency and rate variances
Variable overhead efficiency and spending variance Fixed overhead budget and volume variance
Determine if the variances are favourable or unfavourable
Explain underlying causes for each cost variance
Analyse the interactions between different cost variances