INTRODUCTION
Every company’s survival and progress, depends on the basis of proper estimation of its costs and estimation of product or service pricing. Every cost conscious executive, specific project manager, cost estimator, planner or organization is in need of improving their cost estimation success.
This seminar endeavours to illustrate and explain how to develop costs and how they can be used not only to estimate the product/service cost, but also how to use them to determine a competitor’s likely bid price. It explores the estimating methods typically used to estimate costs and explains the advantages and disadvantages of each, demonstrate several estimating methods, and includes a cost estimating methodology that participants can tailor to their own organizational
needs.
COURSE OBJECTIVE
On completion of the seminar, the participant should be able to:
describe costs by classification;
identify appropriate cost elements;
explain and understand the role of management accounting within an organization and the importance for the requirement of management decision making information;
demonstrate knowledge and application of the principles of management accounting, in planning, monitoring, pricing, and various decision making processes, that are deemed to reduce risk factors related to the organization.
WHO SHOULD ATTEND?
Cost and Accounts’ Executives, Managers, Directors, Planners and Analysts
METHODOLOGY
PowerPoint presentations, discussions and case studies.
COURSE OUTLINE
DAY 1
(9am-10.30am)
Session 1:
- Role of management and function
- Cost data and information for decision making process
- Cost behavior
(10.30 am-10.45 am) Break
(10.45 am-1 pm)
Session 2:
- Absorption costing
- Overhead allocation, apportionment and absorption
- Product cost (pricing) based on absorption costing
(1 pm – 2 pm) Lunch
(2 pm – 3.30pm)
Session 3:
- Activity based costing (ABC)
- Product cost (pricing) based on ABC
- ABC versus Absorption costing
(3.30 pm – 3.45 pm) Break
(3.45 pm – 5 pm)
Session 4:
- Marginal costing
- CVP analysis
- Product cost (pricing) based on marginal costing
- Marginal costing versus absorption costing
DAY 2
(9am-10.30am)
Session 1:
- Other costing techniques (Job, Batch,
- Contract, Service, Process costing)
(10.30 am-10.45 am) Break
(10.45 am-1 pm)
Session 2:
- Forecasting
- Budgetary process
(1 pm – 2 pm) Lunch
(2 pm – 3.30pm)
Session 3:
- Standard costing
- Variance analysis
(3.30 pm – 3.45 pm) Break
(3.45 pm – 5 pm)
Session 4:
- Pricing (importance, factors affecting pricing)
- Price elasticity
- Full cost plus pricing
- Marginal cost plus pricing
- Opportunity cost
- Fixed price tenders
CERTIFICATE OF PARTICIPATION
