Management Accounting - Level 1

General

Program Description

Management Accounting – Level 1

Key Information

  • Course Code: 1895
  • Duration: 4 days
  • Fee: £2120

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

Target audience

This cost and management accounting course is suitable for:

  • 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 cost accounting 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 on 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.

What is Included:

  • 24 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