Introduction
Welcome to cost accounting
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Course prerequisites
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How to use the exercise files
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Cost accounting: High-level overview
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1. Understand Company Costs Related to Products
Product profitability
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Understanding the importance of product profitability
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Complexity of multiple products
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Direct fixed costs
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Direct variable costs
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Indirect fixed costs
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Indirect variable costs
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2. Determine Your Baseline
Product profitability baseline
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Decide on a timeframe
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Gather revenue and cost information
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Assign cost categories
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Direct cost-product allocation logic
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Indirect cost-product allocation logic
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Calculate product profitability baseline
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3. Plan for the Future
Connect targets with profitability
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Orient planning around the baseline
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Build your target baseline
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Using cost evolution assumptions
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Analyzing your pricing
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Taking product mix into consideration
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Calculate probable product profitability
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Ex_Files_Cost_Accounting_Analyzing_Product_Profitability.zip
(82 KB)
Glossary_Cost_Accounting_Analyzing_Product_Profitability.zip
(102 KB)