Advanced Cost Accounting and Cost Management

Day 1: Introduction to Advanced Cost Accounting Concepts

• Overview of cost accounting: Principles and importance.
• Review of basic cost terms and classifications.
• Advanced cost allocation methods: Absorption costing vs. variable costing.
• Direct vs. indirect costs: Determining cost behavior.
• Costing systems: Job-order costing, process costing, and hybrid systems.
• Case study: Choosing the appropriate costing system for different industries.

Day 2: Activity-Based Costing (ABC) and Cost Behavior Analysis

• Introduction to Activity-Based Costing (ABC) methodology.
• Identifying and allocating activity costs in ABC.
• Benefits of ABC for accurate cost allocation and decision-making.
• Analyzing cost behavior: Fixed, variable, and mixed costs.
• Break-even analysis and contribution margin.
• Practical exercise: Implementing ABC in a manufacturing environment.
• Case study: Cost behavior analysis for a service organization.

Day 3: Cost Management Techniques and Strategic Decision-Making

• Introduction to modern cost management techniques.
• Target costing: Defining the target cost and achieving cost reductions.
• Lifecycle costing: Evaluating costs over the entire life cycle of a product or service.
• Value engineering and value analysis: Enhancing value and reducing waste.
• Cost-volume-profit (CVP) analysis: Application in decision-making.
• Pricing strategies based on cost structures.
• Workshop: Applying target costing and lifecycle costing in product pricing decisions.

Day 4: Performance Measurement and Cost Control

• Key performance indicators (KPIs) for cost management.
• Variance analysis: Analyzing cost variances and taking corrective actions.
• Standard costing: Setting and analyzing standards for cost control.
• Performance reporting: Interpreting cost reports for management decisions.
• Internal controls for effective cost management.
• Practical exercise: Calculating and interpreting cost variances.
• Case study: Designing performance measurement systems in a retail environment.

Day 5: Cost Management Implementation and Best Practices

• Developing and implementing a cost management strategy.
• Integrating advanced cost accounting techniques into daily operations.
• Role of cost management in supply chain and inventory management.
• Overcoming challenges in cost management implementation.
• Future trends in cost accounting and cost management.
• Group discussion: Sharing implementation strategies from different industries.
• Final assessment: Knowledge check and feedback session.