# Cost Accounting

(COST-ACCOUNTS.AE1)/ISBN:978-1-64459-470-4

Explore Cost Accounting essentials in a user-friendly format with interactive lessons and hands-on labs. Uncover crucial accounting concepts at your own pace, making financial data more accessible for sound decision-making. Master production cost management and gain valuable insights across various accounting disciplines. No more overwhelm, just practical knowledge.

### Lessons

22+ Lessons | 36+ Exercises | 83+ Quizzes | 105+ Flashcards | 105+ Glossary of terms

### Hands-On Labs

30+ LiveLab | 17+ Video tutorials | 29+ Minutes

Need guidance and support? __Click here to check our Instructor Led Course__.

## Here's what you will learn

Download Course Outline### Lessons 1: Introduction

- About This Course
- False Assumptions
- Icons Used in This Course
- Where to Go from Here

### Lessons 2: So You Want to Know about Cost Accounting

- Comparing Accounting Methods
- Using Cost Accounting to Your Advantage

### Lessons 3: Brushing Up on Cost Accounting Basics

- Understanding the Big Four Terms
- Covering Costs in Different Industries
- Why Are You Spending? Cost Drivers
- Following the Rules of the Cost Accounting Road

### Lessons 4: Using Cost-Volume-Profit Analysis to Plan Your Business Results

- Understanding How Cost-Volume-Profit Analysis Works
- Using Cost-Volume-Profit Analysis to Make Savvy Business Decisions
- The Tax Man Cometh, the Profits Goeth

### Lessons 5: Estimating Costs with Job Costing

- Understanding How Job Costing Works
- Taking a Closer Look at Indirect Costs using Normal Costing
- Following the Flow of Costs through a Manufacturing System

### Lessons 6: More Activity, More Cost: Activity-Based Costing

- Avoiding the Slippery Peanut Butter Costing Slope
- Designing an Activity-Based Costing System
- Using Activity-Based Costing to Compute Total Cost, Profit, and Sale Price
- Implementing ABC Costing for a Business Pivot
- Using ABC Costing for a New Business Model

### Lessons 7: What’s the Plan, Stan? Budgeting for a Better Bottom Line

- Brushing Up on Budgeting Basics
- Planning How to Plan: Factors That Impact Your Budgeting Process
- The Nuts and Bolts (and Washers) of Budgeting
- Budgeting with Cash Accounting or Accrual Accounting
- Budgeting to Produce the Income Statement and Balance Sheet

### Lessons 8: Constant Change: Variance Analysis

- Variance Analysis and Budgeting
- Analyzing in Material Price and Efficiency Variances
- Using Your Findings to Make Decisions

### Lessons 9: Focusing on Overhead Costs

- Using Cost Allocation to Minimize Overhead
- Paying for the Security Guard: Fixed Overhead Costs
- Those Vexing Variable Manufacturing Costs

### Lessons 10: What’s on the Shelf? Inventory Costing

- Working with Inventoriable Costs
- Costing Methods for Inventory
- Using Variable and Absorption Costing to Allocate Fixed Manufacturing Costs
- Relating Capacity Issues to Inventory

### Lessons 11: Cost Drivers and Cost Estimation Methods

- Working with Cost Behavior
- Considering Cost Estimation Methods
- Exploring Nonlinear Cost Functions
- Assessing the Impact of Learning Curves
- Considering how AI and Data Analytics Impact Learning Curves

### Lessons 12: Making Smart Business Decisions with Relevant Information

- Navigating the Geography of Relevance
- Special Orders Don’t Upset Us, Do They?
- Deciding between Outsourcing and In-house Production
- Maximizing Profit When Capacity Is Limited

### Lessons 13: Making Smart Pricing Decisions: Figuring Total Costs

- Understanding Influences on Prices
- Pricing for Profits Down the Road
- Arriving at a Reasonable Profit

### Lessons 14: Analysis Methods to Improve Profitability

- Processing Cost Allocation
- Implementing Cost Allocation
- Going Over Sales Mix and Sales Quantity Variances

### Lessons 15: Behind the Scenes: Accounting for Support Costs and Common Costs

- Not Everyone Generates Revenue: Support Costs
- Going Over Variance Analysis and Department Costs
- Focusing on Common Costs
- Making a Commitment: Contracts

### Lessons 16: Joint Costs, Separable Costs, and Using Up the Leftovers

- Working with Joint Costs
- Continuing Production: Computing Separable Costs After Splitoff
- Choosing a Joint Cost Allocation Method
- Holding a Garage Sale: Making the Most of Byproducts

### Lessons 17: Tracing Similar Products with Process Costing

- Process Costing: Presenting the Basic Approach
- Sitting on the Factory Floor: Dealing with Work in Process
- Using Equivalent Units to Compare Apples to Apples
- Using the Weighted Average Method for Process Costing
- Introducing the First In, First Out Method of Process Costing
- Comparing Processing Costing Methods

### Lessons 18: What a Waste! Getting the Most from Spoilage, Scrap, and Reworked Products

- Accounting for Waste
- Applying Process Costing Methods to Spoilage
- Job Costing for Spoilage, Reworked Products, and Scrap

### Lessons 19: Making Smart Ordering Decisions

- Considering the Costs of Inventory
- Calculating Inventory Quantity with the Economic Order Quantity Formula
- Figuring a Favorable Reorder Point
- Evaluating Prediction Error
- Practicing Just-In-Time Purchasing
- SCM and Customer Demand Issues

### Lessons 20: Quality: Building a Better Mousetrap

- Considering Quality Benefits and Costs
- Compiling a Cost of Quality Report
- Putting Quality Practices in Place
- Customer Satisfaction: Measuring and Improving It
- Doing More in Less Time
- Eliminating the Constraint of the Bottleneck

### Lessons 21: Ten Common Costing Mistakes and How to Avoid Them

- Pricing a Product Incorrectly
- Listing Fixed Costs As Variable Costs
- Labeling Period Costs As Product Costs
- Misusing Target Net Income
- Forgetting About Taxes
- Assigning Costs to the Wrong Product
- Not Reviewing Variances Correctly
- Redlining: Pushing Production Activity Above Relevant Range
- Ignoring the Timing of Costs
- Not Implementing Activity-Based Costing

### Lessons 22: Ten Ways to Increase Profits Using Costing

- Selling More Of The Right Products
- Implementing Sales Mix Analysis to Increase Total Profits
- Building a Higher Margin of Safety
- Deciding How Much You Need: Production and Scheduling Issues
- Who Does What: Handling Costs and Employee Issues
- Reducing and Managing Scrap
- Moving It off the Shelf: Inventory Issues
- Effectively Taking Special Orders
- Making Accurate Cost Allocations
- Addressing the Issue of Spoilage

## Hands-on LAB Activities

### Using Cost-Volume-Profit Analysis to Plan Your Business Results

- Understanding the Contribution Margin and the Breakeven Point
- Calculating the Breakeven Point
- Calculating the Contribution Margin
- Calculating Pre-tax Dollars Needed for Purchase

### Estimating Costs with Job Costing

- Calculating the Direct Material Cost
- Calculating Job Costs

### More Activity, More Cost: Activity-Based Costing

- Calculating the Annual Budgeted Indirect Cost

### What’s the Plan, Stan? Budgeting for a Better Bottom Line

- Understanding a Cash Flow Statement
- Understanding the Income Statement
- Understanding a Balance Sheet

### Constant Change: Variance Analysis

- Calculating the Price Variance
- Calculating the Material Price Variance

### Focusing on Overhead Costs

- Understanding Overhead Costs
- Calculating the Actual Variable Manufacturing Overhead Cost

### What’s on the Shelf? Inventory Costing

- Costing Inventory Using the LIFO Method
- Costing Inventory Using the FIFO Method
- Understanding Variable and Absorption Costing
- Calculating Variable and Absorption Costing
- Calculating the Practical Capacity

### Cost Drivers and Cost Estimation Methods

- Calculating the Estimated Total Cost

### Making Smart Business Decisions with Relevant Information

- Deciding the Carrying Cost

### Making Smart Pricing Decisions: Figuring Total Costs

- Calculating the Target Cost

### Analysis Methods to Improve Profitability

- Calculating the Residential Division Interest Cost

### Behind the Scenes: Accounting for Support Costs and Common Costs

- Calculating the Budgeted Cost Pool
- Calculating the Single Rate Budgeted Cost Allocation Rate

### Joint Costs, Separable Costs, and Using Up the Leftovers

- Calculating the Net Realizable Value

### Tracing Similar Products with Process Costing

- Calculating the Cost Per Equivalent Unit

### What a Waste! Getting the Most from Spoilage, Scrap, and Reworked Products

- Calculating the Equivalent Units

### Making Smart Ordering Decisions

- Calculating the Relevant Total Cost

### Quality: Building a Better Mousetrap

- Calculate the Average Waiting Time