Advanced Management Accounting

General

Program Description

Advanced Management Accounting

Key Information

  • Course Code: AFB103
  • Duration: 7 days
  • Fee: £3745

Course Outline

Cost and Break-even Analysis

  • Fixed and variable costs
  • Contribution
  • Break-even analysis
  • The margin of safety
  • Interpreting break-even analysis
  • Assumptions underlying break-even analysis

Absorption and Activity-based Costing

  • Direct and indirect costs
  • Absorption costing
  • Calculating a blanket rate
  • Over and under recovery
  • Calculating a department rate to fully cost the product
  • Activity-based costing

Budgeting

  • The advantages of budgets
  • The process of budgeting
  • Preparation of a budget
  • Problems of budgeting
  • Budgets to monitor performance and flexible budgeting
  • Variance analysis

Pricing and Costs

  • Using cost information to price your product
  • Discounts and distribution margins
  • Choosing the appropriate costing method
  • Pricing and product strategy
  • Optimum pricing
  • Target costing
  • Life-cycle costing
  • Transfer pricing

Short-term Decision Making

  • What are relevant revenues and costs?
  • Make or buy decisions
  • Limiting factors
  • Upgrading equipment
  • Closure of sites or discontinuing products

Investment Appraisal Techniques

  • Accounting rate of return
  • Payback period
  • Net present value
  • Discounting to present value
  • Internal rate of return

Measuring and Reporting Performance

  • Performance measurement: strategy and objectives
  • Financial and non-financial performance measurement
  • Key performance measures
  • Benchmarking
  • The balanced scorecard
  • Customer profitability analysis
  • Integrated reporting
  • Environment accounting and carbon reporting
  • Corporate governance
  • Ethics

Target audience

  • Those who wish to understand the implications of decisions made across a range of management accounting issues.
  • Those who wish to develop the ability to analyze, interpret, and question the accounting information they may encounter in a business context.
  • Those who wish to acquire a sound appreciation of accounting and finance in order to communicate and succeed in the business world.
  • Non-accounting staff who desire a practical introduction to the fundamentals of management accounting.

Learning outcomes

Upon completion of this course, you will be able to understand:

  • The difference between management accounting and financial accounting.
  • The difference between fixed and variable costs.
  • How to calculate variable and fixed costs using the high-low method.
  • How to use break-even analysis as a decision-making tool.
  • How to calculate and understand contribution, the break-even point, and margin of safety.
  • The limitations of break-even analysis.
  • Why overheads need to be included when costing products.
  • How to calculate a simple ‘blanket’ overhead rate.
  • How to apply absorption costing methods to fully cost out a range of products.
  • The limitations of traditional costing methods.
  • How to calculate a simply activity-based cost.
  • Why a business needs to prepare a budget.
  • The process of preparing a budget.
  • How to prepare a simple budget.
  • The problems of budgeting.
  • The purpose of simple variance analysis.
  • How various methods of costing can impact pricing.
  • How to calculate prices using cost-plus, sales-margin, and discount methods.
  • How various pricing strategies can be used, including how target and life-cycle costing can affect product pricing.
  • How to calculate internal transfer prices in a variety of ways.
  • Which costs are relevant to short-term decision making.
  • Whether an organization should make or buy products.
  • Which products should be prioritized if there are limited resources.
  • If a product should be discontinued or a location closed.
  • The nature and significance of appraising long-term investments.
  • How to use a range of investment appraisal techniques to assess and compare projects.
  • The advantages and limitations of each method.
  • How a business might set its long-term strategy.
  • The performance of a business using non-financial as well as financial measures.
  • The use of benchmarking to improve performance.
  • How to construct a balanced scorecard.
  • How to calculate customer profitability.
  • The role of integrated reporting.
  • The role of environmental accounting and carbon reporting.
  • The need for corporate governance and how ethical and environmental issues should be taken into account.

What is Included:

  • 42 hours of classroom-based training
  • Apple iPad
Last updated Mar 2020

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About the School

London Business Training & Consulting (LBTC) is the UK’s premier business and management training and consulting service provider. We cater to both individual and organisational clients from all o ... Read More

London Business Training & Consulting (LBTC) is the UK’s premier business and management training and consulting service provider. We cater to both individual and organisational clients from all over the world. Read less