Upon successful completion of this course, participants will be able to: Chapter 1 Recognize the nature and scope of cost accounting and cost management. Distinguish between cost accounting and its related fields such as managerial accounting and financial accounting. Identify the three broad purposes for which the manager needs cost information and the roles of the treasury function. Identify developments in the cost accounting and cost management discipline with total quality management and business process engineering. Chapter 2 Identify examples of each of the basic cost elements involved in the manufacture of the product. Distinguish between variable costs and fixed costs and explain the difference in their behavior. Recognize the difference between direct and indirect costs. Recognize the usefulness of the contribution approach to income determination and differences between it and the traditional income statement. Chapter 3 Recognize classifications for manufacturing costs. Identify types of companies that will benefit from process costing and what is involved in process costing. Chapter 4 Recognize the problems associated with traditional overhead costing methods. Associate different cost drivers with different cost pools. Recognize activities in the value chain of business function in activity-based management (ABM). Chapter 5 Recognize how the cost-volume-profit analysis is used by management. Determine how to calculate the sales necessary to break even or to achieve a target income. Compute weighted-average contribution margins. Recognize the concept of a margin of safety. Chapter 6 Recognize examples of variable costs, fixed costs, and mixed costs. Identify methods for estimating the cost-volume formula. Chapter 7 Identify the major steps in budget preparation. Determine appropriate budget levels. Chapter 8 Calculate different variances related to manufacturing costs. Recognize responsibility accounting and the managerial significance of these variances. Identify the value of the analysis provided by performance reporting. Recognize the two-way, three-way, and four-way variance analysis for factory overhead. Chapter 9 Recognize how to calculate different variances associated with single and multi-product firms. Chapter 10 Understand how to compute return on investment (ROI) and how changes in sales, expenses, and assets affect the investment center's performance. Identify how the residual income (RI) differs from ROI in measuring divisional performance. Identify how companies use the Corporate Balanced Scorecard to evaluate performance. Recognize the considerations required to determine appropriate transfer prices. Chapter 11 Identify the costs that are relevant for a particular decision. Recognize attributes in the theory of constraints. Identify characteristics of the target costing process for a new product. Chapter 12 Identify the impact of the time value of money on capital budgeting decisions. Recognize a number of capital budgeting techniques. Chapter 13 Recognize how income tax factors affect investment decisions. Identify the different types of depreciation methods. Recognize the effect of the Modified Accelerated Cost Recovery System (MACRS) on capital budgeting decisions. Chapter 14 Recognize how to choose the right system for cost accumulations. Distinguish between the weighted-average and first-in, first-out (FIFO) process costing methods. Recognize different methods of allocating service department costs to production department work. Chapter 15 Identify how total quality management (TQM) in a manufacturing environment is best exemplified. Recognize how TQM can work well in a team environment and how quality can be used as a strategic weapon. Chapter 16 Recognize the carrying costs and ordering costs associated with inventory management. Identify the objectives of the basic economic order quantity (EOQ) model.

Cost Management Cost Management Principles Job Order Costing System Overhead Allocation Cost-Volume Profit Analysis Cost Behavior Analysis Budgeting System Controlling Cost Centers Measuring the Performance of a Profit Center Evaluating an Investment Center Making Non-Routine Decisions Making Long-Term Decisions The Effect of Income Taxes on Investment Decisions Process Costing Quality Management Inventory and Order Management