Course

Objective:

Learning Outcomes:

• Understand the flow of cost in job-order costing and use activity-based absorption costing to compute product costs
• Understand the flow of process costing, computing the cost per equivalent unit using the weighted-average method and FIFO method and allocating department costs using the direct and step-down methods
• Explain how changes in activity affect contribution margin and net operating income and examine cost-volume-profit relationships, such as margin of safety and break-even points
• Explain how variable costing differs from absorption costing and prepare income statements using the different approaches as tools for management
• Understand and compute various performance measurements
• Prepare differential analysis as a key to decision making
• Compute and interpret financial ratios
• Understand cost classifications as applied to preparing financial statements, predicting cost behavior, and making decisions
• Understand activity-based costing and how it differs from a traditional costing system
• Understand budgets, the process used to create budgets, and the preparation of various kinds of budgets
• Compute and record various variances
• Evaluate calculations for capital budgeting decisions
• Prepare a statement of cash flows using the direct and indirect methods and compute free cash flow

General Topics: