Costs & Costing for Effective Business Planning

Marketing Institute of Singapore - Executive Development


Course introduction

Business entities operate in a dynamic environment driven by competitive, regulatory and fast-moving technological changes. Costs have been, still are, and will remain the dominating concern of all types of businesses, be they manufacturing, merchandising or service, as well as all forms of organisations regardless if they are proprietorships, partnerships or limited liability companies - for-profit or otherwise. This two-day course is prepared to provide non-finance management executives and business professionals with the fundamentals of cost accounting which is an integral part of Management Accounting.



Course Benefits


The first day of the course will focus on differentiating fixed costs from variable costs, how they respond to changes in activity (output) levels, and how they are applied to determine the breakeven point (BEP) of a product. The components and determination of product costs, and the difference between product and period costs will be explained.

The second day will focus on the costing of products and services under the Job Order Costing, Process Costing and Activity-based Costing (ABC) systems. It is crucial to know the costs and costing of products and services for purposes of competitive pricing, and for effective planning, cost control and sound decision-making on project appraisals.



Target Audience


This course will benefit management and business professionals who need to understand and access wide-ranging and accurate cost and costing information to manage and evaluate their businesses and business units effectively.



Course Outline


1.  Management Accounting vs. Financial Accounting

2.  Cost Concepts

  • Cost Behaviour
  • Variable costs
  • Fixed costs
  • Hybrid costs
  • Breakeven Analysis
  • Contribution margin
  • BEP graph
3.  Cost Components
  • Product (Manufacturing) Costs
  • Direct materials
  • Direct labour
  • Manufacturing overhead
  • Product vs. Period Costs
  • Cost of Goods Manufactured (CoGM) and Cost of Sales (CoS)
4.  Job Order Costing vs .Process Costing
  • Job Order Costing
  • Job cost flows
  • Job cost sheet
  • Determining overhead rates
  • Determining CoGM and CoS
  • Under- vs. over-applied overheads
  • Job order costing in non-manufacturing entities
  • Process Costing
  • Process cost flows
  • Direct materials requisition
  • Direct labour assignment
  • Overhead allocation
  • Inter-processing department transfer of WIP costs
  • Transfer of cost of completed goods to finished goods inventory
  • Transfer of cost of sold inventory to cost of sales

5.  Activity-based Costing (ABC)
  • ABC in Manufacturing Entities
  • Allocating overhead to multiple activity Cost Pools
  • Assigning activity cost pools to products using Cost Drivers
  • Activity-based Management (ABM)
  • Value-added activities
  • Non-value-added activities
  • Activity flowchart



Available Course Sessions


Course Date, Time Reg. Closes On
1 29 May' 17 to 30 May' 17, 9.00am to 5.00pm 28 May' 17 Register Now



Trainer Profile


Chow Chan Kwan

Chow Chan Kwan has more than 15 years of experience as General Manager of various manufacturing subsidiaries of a multinational company in Singapore and China. He has also delivered accounting and finance lectures to students pursuing the Certificate in Management (CIM) at the Singapore Institute of Management (SIM), and conducted in-house financial training during the initial stage of his career as a statistics and research officer at a Malaysian Bank.

Chow holds a Master of Business Administration (MBA) degree in Accounting and Finance from Ohio University in the USA. While pursuing his MBA degree, he delivered accounting lectures to freshmen students, a provision under the university's Graduate Assistant Scholarship Scheme.

Chow is currently a professional trainer and consultant, specialising in Accounting, Finance and Strategic Management.



 

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