- Those who wish to understand the implications of decisions made across a range of management accounting issues.
- Those who wish to develop the ability to analyse, interpret, and question the accounting information they may encounter in a business context.
- Those who wish to acquire a sound appreciation of accounting and finance in order to communicate and succeed in the business world.
- Non-accounting staff who desire a practical introduction to the fundamentals of management accounting.
What you will learn
Upon completion of this course, you will be able to understand:
- The difference between management accounting and financial accounting.
- The difference between fixed and variable costs.
- How to calculate variable and fixed costs using the high-low method.
- How to use break-even analysis as a decision-making tool.
- How to calculate and understand contribution, the break-even point, and margin of safety.
- The limitations of break-even analysis.
- Why overheads need to be included when costing products.
- How to calculate a simple ‘blanket’ overhead rate.
- How to apply absorption costing methods to fully cost out a range of products.
- The limitations of traditional costing methods.
- How to calculate a simply activity-based cost.
- Why a business needs to prepare a budget.
- The process of preparing a budget.
- How to prepare a simple budget.
- The problems of budgeting.
- The purpose of simple variance analysis.
- How various methods of costing can impact on pricing.
- How to calculate prices using cost-plus, sales-margin, and discount methods.
- How various pricing strategies can be used, including how target and life-cycle costing can affect product pricing.
- How to calculate internal transfer prices in a variety of ways.