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Course Description:
Standard
costs are widely used by manufacturing organization and by some service
organizations. This seminar examines standard cost systems in a
real-world setting. It covers the advantages and disadvantages of
standard cost systems and explain the standard setting process, which
typically occurs during the budgeting cycle. During the seminar, you
will learn how to calculate each element of standard costs and how to
perform variance analysis. In addition, you will learn how to use
standard cost information to identify cost improvement opportunities in
your business processes. The seminar focuses on manufacturing entities,
which are the primary users of standard cost systems, though the concepts
presented can be applied to the service industry.
Pre-requisites: This course is taught at an intermediate
level. Participants should have completed the course
Understanding
Financial Information, Basic Cost Concepts or their equivalent before
taking this course.
Pre-work: Not required.
Who should attend:
Production
managers and supervisors, group leaders, professional employees such
planners, industrial engineers, buyers, QC analysts, accounting managers
and supervisors, CPAs, CMAs, financial accountants, financial analysts,
cost accountants, cost analysts.
Course
Objectives: Upon completion of this seminar, you will be able
to:
- Define standard costs
and their uses.
- Explain the function of
standard costs as a management control system
- Explain behavioral
considerations that affect the standards setting process
- Identify the steps
involved in the standard setting process and their importance.
- Explain how to set time
and materials standards and the issues that should be considered during
this process.
- Calculate standard
labor, material, and overhead costs for your product.
- Calculate and interpret
standard cost variances.
- Use standard cost
information to identify cost improvement opportunities.
Course content:
- What are standard costs?
- Standard costs as a
management control system
- Advantages and disadvantages of standard costs
- Behavioral considerations in setting standards
- The standard setting process
- How to set time and materials standards
- How to calculate standard materials, labor, and
overhead costs
- The impact of yield and capacity on standard costs
- How to perform standard cost variance analysis
Instructional method used:
Group-live
Recommended CPE:
7 credit hours |
