Introduction
Cost Management involves applying management accounting concepts and methods to collect, analyze, and present data needed for planning, monitoring, and controlling costs. Achieving cost leadership is crucial for gaining a competitive advantage, which requires a robust cost management system.
Learning Objectives
The Cost Management Certification Course aims to:
- Differentiate between traditional and modern cost management techniques.
- Understand various product pricing strategies.
- Apply cost management techniques for strategic decision-making.
- Utilize performance evaluation techniques by linking critical success factors with key performance indicators.
Training Methodology
The course will include:
- Presentations by experienced subject matter experts
- Group discussions
- Problem-solving exercises
- Accounting statement practice
- Group activities
- Sharing experiences and best practices Xcelerate Training Institute follows the ‘Do–Review–Learn–Apply’ model.
Benefits for Your Organization
Organizations will benefit from:
- Increased profitability through cost reduction and strategic positioning.
- Improved control over overall business costs.
- Creation of a cost management system to predict future expenses and revenues.
- Proper recording and presentation of cost data for efficiency measurement and cost control.
Benefits for You
Participants will gain:
- Leadership in cost management.
- Insights into reducing costs and establishing cost controls.
- Enhanced performance in estimation, budgeting, and cost control.
- Ability to manage costs professionally and competently.
Target Audience
This course is ideal for:
- Financial controllers and finance managers
- Financial systems analysts and senior accountants
- Financial accountants and management accountants
- General ledger accountants, assistant accountants, accounts receivable and payable accountants, payroll accountants
- Management and decision-makers relying on timely and accurate financial information
- Chief Financial Officers (CFOs), finance directors, and strategic planners
Course Outline
Introduction to Cost Management
- Cost Management Concept
- Traditional Cost Management
- Modern Cost Management
- Benefits of Modern Cost Management
Traditional Cost Management
- Product Cost Management
- Material Cost
- Employee Cost
- Overhead
- Job Costing
- Batch Costing
- Unit Costing
- Process Costing
- Limitations of Traditional Cost Management
Modern Business Environment
- Characteristics of Modern Business Environment
- Business Excellence Model
- Total Quality Management
- Supply Chain Management
- Business Process Reengineering
- Outsourcing
- Just-in-Time
- Six Sigma Techniques
Modern Cost Management Techniques
- Cost Reduction
- Cost Control
- Target Costing
- Value Engineering
- Pareto Analysis
- Life Cycle Costing
Decision Making
- CVP Analysis
- Activity-Based Costing
- Theory and Principles of Product Pricing
- Sensitivity Analysis
- Pricing Strategies
Performance Evaluation
- Responsibility Accounting
- Critical Success Factors
- Key Performance Indicators
- Balanced Scorecard
- Performance Pyramid
- Building Block Model
Cost Control and Analysis
- Marginal Costing
- Contribution Margin
- Break-Even Analysis
- Margin of Safety
- Product/Service Cost under Marginal Costing
- Standard Costing
- Setting up Standards
- Types of Standards
- Cost Variance
- Integration of Standard Costing with Marginal Costing
Budgets and Budgetary Control
- Introduction to Budgeting
- Budget Setting Process
- Flexible Budgets
- Functional Budgets
- Cash Budget
- Master Budget
- Zero-Based Budgets
- Performance Budgets
- Behavioral Aspects
- Beyond Budgeting