Cost Identification and Management – provides a review of some often used, but not understood, concepts such as economies of scale, productivity and inflation, as well as a discussion of allocation policies, use of standards, internal pricing and inventory practices. The goal is to improve an organization’s measuring and reporting. The value of linear analytical models is demonstrated as a tool to measure and forecast sales, profits, cash flow and capital allocation. The use of linear models is further developed to measure other macro trends in the organization. Examples discussed include isolating cause-effect relationships, measuring changes in productivity, identifying changes in fixed and/or variable costs and forecasting sales. The models are simple and can be adapted to numerous situations. No formal statistical training is required. The principles behind the Theory of Constraints are discussed, as are its practical uses to improve efficiency and measurements in organizations.
DESIGNED FOR
CPAs, Controllers, Financial Managers
BENEFITS
*Evaluate how accounting is an evolving and growing body of knowledge.
*Identify the uses of break even analysis.
*Compare analytical techniques to improve the user's ability to isolate and measure cost trends
COURSE LEVEL
Intermediate
PREREQUISITES
Management experience in accounting, finance, or operations
ADVANCE PREPARATION
None