Analyze and interpret accounting data to assist in management decision making.
Account for raw materials, work-in-process, finished goods and cost of goods sold using job order and process costing; including just-in-time inventory management and activity-based costing concepts.
Prepare statements for cost of goods manufactured, cost of goods sold and income.
Describe cost classifications, behaviors and apply the (CVP) Cost-Volume-Profit analysis concepts of contribution margin, and relevant costs to decision-making and profit planning.
Compute break-even points and determine target volumes needed to earn target profits and calculate the contribution margin ratios and the margins of safety and operating leverage.
Apply the budgeting process to the creation of budgets through the use of standard costs.
Explain the meaning of variances, perform variance analysis and prepare journal entries to record and dispose of variances.
Use differential cost analysis and capital budgeting techniques to make decisions.
Course Description Expands the student’s ability to use job order and process costing systems as well as the student’s ability to apply and analyze accounting information for decision making in planning and controlling business activities. This includes the collecting of cost information, cost estimation and allocation, standard costs, budgeting and cost-volume-profit relationships. Credits: 3