Effective Cost Management for Profit Maximization

Manufacturers and service providers incur cost in the production and provision of goods and services to their customers and consumers, therefore the determination of costs of goods produced and services provided need to be determined with certainty and appropriately, in which issues like overheads in relation to production activities need to be understood and addressed properly in order for the organization to cost and quote its products and services accordingly.

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— Course Fee: RM 790.00 (Inclusive of 8% Service Tax) —

The role of management accountant in providing information to and advise the decision makers accordingly.
The scope of management accounting in analyzing information in supporting business management.
The provision of information to assist with planning, monitoring/control, performance evaluation and decision making.
The needs for planning are the recording of forecasts into measurable budgets, such as production and sales budgets, as a form of targets for achievement.
The ability in cash flows forecasting and the preparation of cash budget in assisting the company in planning for capital requirements; and fund raising needs or investment of surplus funds.
The ability to monitor the performance of budget holders through budgets set and carry out any necessary control or corrective actions accordingly.
The calculation of variances in order to carry out an analysis of any differences between actual results achieved and budgets set in evaluating the performance of the budget holders.
The determination of scarce resources, relevant costs and revenue in assisting the decision makers in making the appropriate decisions.
The importance of, and the ability to identify cost behavior for the calculation of production costs and decision making.
Long term decision making involving capital investment appraisal.

Module 1: The Nature and Purpose of Management Accounting

Financial accounting vs Management accounting
Forecasting/Planning
Monitoring/Control
Performance measurement
Decision making

Module 2: Costs Classification

Production cost – Direct & Indirect costs
Costs behavior – Variable & Fixed costs

Module 3: Product Costing

Job costing
Batch costing
Process costing
Service costing

Module 4: Budgets Preparation

Sales budget
Production budget
Materials budget
Labour budget
Cash budget

Module 5: Monitoring & Control

Controllable & Uncontrollable costs
Purpose of budgets

Module 6: Performance Evaluation

Standard costing and variance analysis
Interrelationship of variances

Module 7: Relevant Costing for Short Term Decision Making

Relevant & Irrelevant costs
Cost Volume Profit (CVP) analysis
Short term decision making

Module 8: Capital investment appraisal

Payback method
Net Present Value (NPV) method
Internal Rate of Return (IRR) method
Return On Investment (ROI) method

Effective Cost Management for Profit Maximization

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What Will You Learn?