Management Accounting - Level 1

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.