Introduction to Cost Accounting and Cost Classification
Learn about the components of cost accounting, types of cost and methods of cost accounting from this free course.
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This free online course will begin by introducing you to the important steps to consider in financial management as well as the different components of cost accounting. You will learn about the various ways cost can be classified, the components of cost volume profit analysis, the different methods of calculating profit as well as contribution margin, and the importance of marginal cost in cost accounting.
This course will also introduce you to the function as well as the objectives of cost volume profit analysis in cost accounting, along with its assumptions. You will learn about the different formulas for calculating profit and contribution margin in cost accounting, as well as how the cost volume profit graph is plotted along with examples that depict how they apply to our daily lives.
Finally, this course will introduce you to the function of the breakeven point as well as how it can be applied in accounting problems. It will teach you about the functions of sensitivity analysis and under which condition the cost volume profit (CVP) assumption can be changed. Start this course now and improve your knowledge of the functions of make or buy decisions, shut down cost, joint product, as well as joint product cost allocation in cost accounting.Start Course Now
Introduction to Cost Accounting
Introduction to Cost Accounting - Learning Outcomes
Introduction to Cost Accounting
Classification of Cost
Cost Volume Profit Analysis
Margin of Safety
Introduction to Cost Accounting - Lesson Summary
Breakeven Point and Sensitivity Analyses in Cost Accounting
Breakeven Point and Sensitivity Analyses in Cost Accounting - Learning Outcomes
Application of Breakeven Point Analysis
Case of Ayur Pharma
Different Decison Scenarios and Profit Planning
Relevant Costs in Decison Making
Breakeven Point and Sensitivity Analyses in Cost Accounting - Lesson Summary
Cost Accounting Case Studies
Cost Accounting Case Studies - Learning Outcomes
Case Study: Breakeven Point
Case Study: JSW ISPAT Steel
Case Study on Projection: Divya Aushadhi Limited
Case Study: Shree Cements
Cost Accounting Case Studies - Lesson Summary
On successful completion of this course you will be able to:
- Discuss the concept of cost accounting and the types of cost in cost accounting.
- Identify the different ways of classifying costs.
- Explain cost volume profit analysis and the breakeven point.
- Explain how graphs are plotted for a fixed cost, the variable cost, and semi-variable cost.
- Analyze the formulas for calculating the profit equation and contribution margin.
- Explain how breakeven point analysis can be applied in cost accounting.
- Discuss the concept of sales mix and how to calculate the breakeven point of the sales mix.
- Explain the concept of sensitivity analysis and its importance in cost accounting.
- Explain how to calculate the profit volume ratio (PV) in cost accounting.
- Discuss the concepts of relevant versus sunk cost, and make or buy decision in cost accounting.
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