Cost Accounting Fundamentals: Essential Concepts and Examples

14 Credits: Accounting


Webcasts are available for viewing Monday – Saturday, 8am – 8pm ET.
Without FlexCast, you must start with enough time to finish. (1 Hr/Credit)

 Secure Transaction

Cost Accounting Fundamentals: Essential Concepts and Examples

Course Level
CPE Credits

14 Credits: Accounting

Course Description

Cost Accounting Fundamentals describes the key cost accounting concepts that concern the practicing cost accountant, illustrating these concepts with numerous examples. The course is designed for both professional accountants and students, since both can benefit from its detailed descriptions of inventory valuation methods, product pricing techniques, cost analysis methods, and more. Several major cost accounting topics are discussed in depth:

  • The nature of cost accounting
  • Details of the cost accountant job description
  • Methods used to value inventory, including job costing, process costing, standard costing, joint and by-product costing, and accounting for waste products
  • The contribution of cost accounting to product pricing, including a lengthy discussion of how much a product costs for pricing purposes, how target costing works, and the mechanics of transfer pricing
  • Cost analysis methods, including direct costing, activity-based costing, constraint analysis, and capital budgeting analysis
  • How to collect cost-related information
  • The variability of costs under various circumstances
  • The cost of quality
Show More
Show Less

Learning Objectives

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

Chapter 1

  • Identify the situations in which we use cost accounting.

Chapter 2

  • List and recognize the responsibilities and necessary qualifications of the cost accountant.

Chapter 3

  • Cite the types of costs involved in the study of cost accounting.

Chapter 4

  • Recognize the methods available for deriving inventory costs and the cost of goods sold.

Chapter 5

  • Identify when you should use job costing, and compile the cost of a job.

Chapter 6

  • Recognize when you should use process costing, and use the various methods for compiling process costs.

Chapter 7

  • Recognize when to use standard costing, create standard costs, and calculate variances from the standards.

Chapter 8

  • Identify the various methods for allocating joint costs, as well as the effects of allocations on profitability.

Chapter 9

  • Identify the proper accounting for various types of spoilage, rework, and scrap.

Chapter 10

  • Recognize the types of costs to include in the formulation of a product price, and the circumstances under which these costs may be included or excluded.

Chapter 11

  • Identify the process by which target costs are derived and how that target can be met.

Chapter 12

  • Recognize the process by which target costs are derived and how that target can be met.

Chapter 13

  • Identify the circumstances under which direct costing can be used as an analysis tool.

Chapter 14

  • Recognize the process for compiling activity-based costs, as well as how allocation bases, cost pools, and activity drivers are used.

Chapter 15

  • Recognize the components of constraint analysis and how to use this analysis to improve profits.

Chapter 16

  • Recall the various methods for reviewing a capital budgeting proposal.

Chapter 17

  • Cite the methods used to accumulate costs and the circumstances in which they are most useful.

Chapter 18

  • Identify the extent to which costs can change in reaction to different circumstances.

Chapter 19

  • Identify the types of costs associated with the quality concept.
Show More
Show Less

Course Specifics

Course ID
Revision Date
September 27, 2022

There are no prerequisites.

Advanced Preparation


Compliance Information

NASBA Provider Number: 103220

CMA Notice: Western CPE makes every attempt to maintain our CMA CPE library, to ensure a course meets your continuing education requirements please visit Insitute of Management Accountants (IMA)

CFP Notice: Not all courses that qualify for CFP® credit are registered by Western CPE. If a course does not have a CFP registration number in the compliance section, the continuing education will need to be individually reported with the CFP Board. For more information on the reporting process, required documentation, processing fee, etc., contact the CFP Board. CFP Professionals must take each course in it’s entirety, the CFP Board DOES NOT accept partial credits for courses.

Meet The Experts

Steven M. Bragg Headshot

Steven M. Bragg, CPA, is a full-time book and course author who has written more than 250 business books and courses. 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 …

Steven M. Bragg, CPA Read More »