There are no prerequisites.

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Course Description

Cost accounting is frequently relegated to the analysis of inventory costs for financial reporting purposes. However, cost accounting can also be used to drive a great deal of profit generation through many types of analysis. Doing so yields better information about product pricing, constraints, and which activities actually trigger expenses.

This course addresses many of the key aspects of cost accounting, including how to compile inventory costs, when to use job costing, process costing, and standard costing, and how to allocate joint costs. It also covers how to use cost accounting in the development of new products and their prices, as well as how to conduct analyses with direct costing, activity-based costing, and constraint analysis.


Steven M. Bragg, CPA

Steven M. Bragg, CPA, is a full-time book and course author who has written more than 70 business books. He provides Western CPE with self-study courses in the areas of accounting and finance, with an emphasis on the practical application of accounting standards and management techniques. A sampling of his courses include the The New Controller Guidebook, The GAAP Guidebook, Accountants’ Guidebook, and Closing the Books: An Accountant’s Guide. He also manages the Accounting Best Practices podcast.

Steven has been the CFO or controller of both public and private companies and has been a consulting manager with Ernst & Young and an auditor with Deloitte & Touche. He holds an MBA from Babson College, a Master of Finance from Bentley College, and a BA from the University of Maine (summa cum laude).

Course Specifics

Dec 19, 2017
There are no prerequisites.

Compliance Information

Qualifies for CA Fraud: No

Learning Objectives

Upon successful completion of this course, participants will be able to:

Section 1

  • Choose a descriptor that is not representative of the perpetual inventory system.
  • List a characteristic of the LIFO method and cycle counting.
  • Define a cost pool.
  • Calculate the cost of goods sold.
  • Name a cost included in manufacturing overhead.

Section 2

  • Specify how the production process is treated under process costing.
  • Cite an area where standard costing is of good use.
  • Identify the basis of a theoretical standard.
  • State the fraudulent result of using cost shifting.
  • Choose a costing system based on given information.
  • Calculate material yield variance.
  • Define the term for a volume variance that relates to the use of direct labor.

Section 3

  • Define a joint cost, a byproduct, spoilage, and rework.
  • Choose an action that is not part of target costing and a role not played by the cost accountant on a target costing team.
  • Specify an effect that is not attributed to a direct cost.
  • Name a consideration when deciding when to report variances to management.
  • List a common method for allocating joint costs.
  • Identify a cost not considered a possible data source for target costing.
  • Cite the use of targeted gross margin in target costing and why a product's planned durability would be reduced in a target costing program.
  • State an example of a direct cost and when direct costing analysis is usually valid.

Section 4

  • Define an activity driver, throughput, and capital budgeting.
  • Identify a characteristic of backflushing.
  • Name a method not commonly used for tracking employee time.
  • Choose a normal chain of events when deriving activity-based cost.
  • List an item that is not normally an activity driver.
  • Cite an issue with activity-based costing.
  • Specify the buffer in constraint analysis.
  • State the use of sprint capacity.
  • Name the capital budgeting analysis tool that uses the discount rate.
  • Identify a condition for doing a post-installation review after purchasing a large fixed asset.

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Online Access

Get immediate access to a robust collection of learning and reference materials, allowing you to dive deep into the information you need. Our self-study materials are authored by top-quality, industry experts who focus on helping you grasp concepts quickly using real-life examples. Download your CPE to any device, and take it with you so you can learn when and wherever you want. Complete your CPE with an online exam, and enjoy instant grading with the option to print your certificate immediately upon passing.

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Hard Copy

Our self-study materials are authored by top-quality, industry experts. You’ll receive a bound notebook of all the course materials, shipped to you within one business day. In addition, you’ll also have full online access. Each self-study package includes a robust collection of learning and reference materials to help you cover the information efficiently and put it into practice immediately.

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Self-Study Video

Experience high-quality instruction with our Self-Study Videos, available to you 24/7. With more than 80+ videos currently in the Western CPE Self-Study Video library, you can see and hear our expert instructors deliver the information you need in a dynamic way that allows you to immediately apply your learning. Unlike a live course or webcast, you can complete the course on your own time, playing and pausing as needed. Self-Study Videos allow you to complete your CPE requirements on your own time.

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