Cost Data Analysis

Analyzing Cost Data for Planning v.2

Course Overview:
Cost-volume-profit (CVP) analysis, together with cost behavior information, helps cost/managerial accountants perform many useful analyses. Cost-volume-profit analysis is useful as a frame of reference, as a vehicle for expressing overall managerial performance, and as a planning device via break-even techniques and "what-if" scenarios.

This course highlights the analytical usefulness of CVP analysis as a tool for profit planning. It looks at three types of cost behavior - variable, fixed, and mixed. Two popular methods of separating mixed costs in their variable and fixed components: the high-low method and regression analysis are also discussed. The last part of the course covers budgeting for profit planning and financial modeling.

Learning Objectives:

After completing this course, the course participant should be able to:

  • Describe various contribution margin concepts.
  • Compute the sales necessary to break even or to achieve a target income.
  • Prepare break-even and profit-volume charts.
  • Explain four methods of estimating cost functions: engineering analysis, account analysis, high-low method, and least-squares regression method.
  • Develop a formula using the high-low method.
  • Explain the need for multiple regression analysis.
  • Prepare sales, production, cost, and cash budgets.
  • Describe how budgets aid in planning and control and how a computer-based financial modeling approach may be used in the planning process.

  • Content Partner:

    SmartPros Ltd.

    SmartPros Ltd. is a leader in online and offline continuing education for
    accounting, finance and engineering professionals. With over 2,000 hours of
    content, SmartPros has been providing mandatory continuing education
    products since 1981. SmartPros provides services and content to its
    professional and corporate clients, in a variety of media including Web, CD
    ROM, and video. In the accounting market, SmartPros also has a predominant
    news and information portal which receives 200,000+ visits per month and
    provides services to over 100,000 subscribers. SmartPros' customers include
    50% of the Fortune 500, as well as the major firms and associations in each
    of its professional markets.

    Prerequisites/Advanced Preparation:

    Basic math; Basic accounting

    Speaker / Author:

    Steve Spafford is a CPA with DeltaCPE LLC, a national CPE provider.

    Software & Hardware Requirements:

    • 56k or Greater Internet Connection
    • Adobe Acrobat® Reader for the .pdf files
    • Adobe® Flash® Player 8 or higher
    • Modern DHTML Compatible Browser
    • Ram: 256 MB minimum
    • Windows or Mac OS

    Price (USD)

    Standard: $49.90


    Course Code : 991441-v2

    Length : 1hr 40min
    Course Level : Basic
    Course Type : New Standards
    Passing Grade : 70%
    Format Type : eLearning
    Field Of Study : Management Services

    Theme : Cost Data Analysis

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