Cost accounting will help businesses determine the costs of products, projects, processes to ensure that financial reports and statements are as accurate as possible. It also helps executives and authorized members of management make the most informed decisions when they are financial planning or deciding on the best long-term moves for the organization.

To see the big picture, the accounting professionals will record the cost of inventory, manufacturing, goods sold, and overhead operations. After this is reported, the expert in cost accounting and management will then analyze the cost behavior so that they are able to see the cost-volume-profit relationships and how it relates to the existing budget

Cost accounting was originally created to help manufacturing businesses assess the cost to manufacture products, store them, ship them, and stay profitable. While it was first involved in the manufacturing sector, it now has become an integral part of budget planning within the service industry. The main reason why this approach to accounting helps businesses thrive is because it shows the company where it is earning and losing money.

After evaluating how efficient the company is in using their budget, they can decide if pricing needs to be adjusted to account for high expenditures. In the end, cost management accountants will give data and analysis reports to management that will be used by managers to make decisions that will lead to long-term profits. This is done by using job costing, process costing, direct costing, and activity costing techniques to interpret costs.

 

MCA is 6 months program

Course Outline:

  • Cost Terms and Purposes
  • Cost Allocation
  • Activity Based Costing
  • Pricing and Target Costing
  • Cost-Volume-Profit analysis
  • Return on Investment
  • Planning and Budgetting
  • Strategy formulation
  • Management and Task Control
  • Balanced Score Card and Its Implementation
  • Measuring and Evaluating the Financial and Non-Financial performance
  • Liquidity Management
  • Working Capital Optimization
  • Business Process Improvement