World-Class Cost Accounting: A Practical Application (Part 2)

Overview

Manufacturing overhead costs - how to identify, classify, and trace products. How to handle Phantom sub-assembly costing issues. How to account for costs when manufacturing deviates from normal operations - outside temporary contractors. Applying costing principles to a process cost system and a project cost system. Example of a best-in-class chart of accounts for management reporting.

Prerequisites

World-Class Cost Accounting: A Practical Application (Part 1)

Objectives

• Specifics for classifying MGH overhead costs to products
• Tracing MGH overhead costs to products for costing and pricing accuracy
• Examples of specific identification of MFG overhead costs to products and the dramatic effect of reducing arbitrary allocations
• ABC Analysis for non-manufacturing departments
• Life-Cycle costing of products

Highlights

• Covers fixed and variable MGH overhead of the production department
• Covers MFG overhead of the manufacturing support departments
• Identifying certain MFG overhead costs as variable that typically are classified as fixed