- Build on the foundation from Part 1 and deepen your expertise by mastering the treatment of manufacturing overhead. Using the cost system of a real company, you’ll learn to distinguish overhead costs that can be directly traced versus directly assigned, and how to structure inventory cost pools for accurate product costing. Explore methods for handling deviations from normal manufacturing processes and see how all overhead costs can be systematically integrated into a comprehensive cost system. Completing Part 1 is highly recommended, as its principles carry forward into this advanced application. World Class Cost Accounting: A Practical Application
- Part 1
Learning Objectives
• Determine the justification for the most accurate bases to cost manufacturing overhead to products
• Recognize how to reduce fixed manufacturing overhead allocations by 60% or more
• Identify solutions for abnormal costing issues
Major Topics
• Classification of MFG overhead into the five cost types
• Selecting the bases for tracing or assigning overhead to products
• Period Manufacturing Inefficiencies’categories and costing
