Managerial Accounting Concepts – Cost Behavior, Breakeven Analysis, Variable Costing, Decisions, and More
Anyone who wants to make informed, fact-based decisions that are key to the success of an organization will benefit from this class. This course can benefit accountants in addition to business decision makers. Managers within an organization can use managerial accounting as a basis for making informed, fact-based decisions. This course will cover managerial accounting concepts.
The course allows participants to become familiar with or brush up on concepts used to categorize costs, compares absorption costing to variable costing, and provides analysis of company performance for various business scenarios. This course provides business managers with the tools and techniques they could use to analyze company performance as well as categorize, and evaluate company product costs to make informed product decisions.

Companies must have a good understanding of their costs to succeed which can be done through managerial accounting.

Managerial accounting concepts covered include:
  • Behaviors of Costs and Breakeven (Cost Profit Volume) Analysis: The fixed and variable classification of costs as well as the technique of breakeven analysis for companies with a single product as well as companies with multiple products.
  • Variable Costing Analysis: Differences between absorption costing and variable costing along with techniques for determining what costs should be product costs under the absorption and variable costing methods are presented. Explanations of the Income Statement for both absorption and variable costing and the differences between both methods are also addressed.
  • Relevant Costs for Managerial Decisions: Relevant costs, including sunk cost, out-of-pocket cost, and opportunity cost in addition to incremental costs are discussed. Relevant cost analysis illustrations for additional business decisions such as: make or buy, scrap or rework, sell or process further, sales mix with constrained resources, segment elimination, and keep or replace equipment. Unavoidable and avoidable costs as they relate to segment elimination are also explored.
  • Performance Measurement and Responsibility Accounting: This sections includes discussions of the advantages and disadvantages of decentralized organizations; the use of performance evaluations using cost centers, profit centers and investment centers; controllable and uncontrollable costs and the use of responsibility accounting system; direct and indirect costs and the allocation of indirect costs including examples for utility, advertising, rent, wages and salaries, equipment and machinery deprecation, and service department expenses; departmental income statements and the allocation of service department costs under the direct, step and reciprocal methods; and, the use of investment center performance evaluation and other nonfinancial performance measures.


Course Publication Date: February 05, 2022

This course is available with NO ADDITIONAL FEE if you have an active self study membership or all access membership or can be purchased for $40.00!

Author:CPE Academy LLC
Course No:ACT-CONCEPTS-1532
Recommended CPE:4.00
Delivery Method:QAS Self Study
Level of Knowledge:Intermediate
Prerequisites:None
Advanced Preparation:None
Recommended Field of Study:Accounting
  
Learning Objectives
  • Recognize the fixed and variable classifications of costs along with the technique of breakeven (cost volume profit) analysis for companies with a single product as well as companies with multiple products.
  • Identify the differences between absorption costing and variable costing in addition to techniques for determining what costs should be product costs under the absorption and variable costing methods.
  • Properly identify the Income Statements for both absorption and variable costing methods as along with the differences between both methods.
  • Identify the three types of relevant costs, incremental costs, and avoidable and unavoidable costs.
  • Identify the advantages and disadvantages of decentralized organizations including performance evaluations using cost centers, profit centers and investment centers plus controllable and uncontrollable costs used within the responsibility accounting system.
  • Properly identify direct and indirect costs and the allocation of indirect expenses. Including discussing of department income statements and understanding of the allocation of service department costs under the direct, step, and reciprocal methods.
  • Identify investment center performance evaluations and other nonfinancial performance measures.

CPE Depot Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

Sponsor Number: 109423

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