Management  |  Format: Flash

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.
    Catalog Number: 991441-v2
    CPE Credits: 2 Registry / 2 QAS
    Author: Steve Spafford, CPA
    Advanced Preparation:
    Basic math; Basic accounting
    Course Level: Basic
    Field of Study: Management Services
    Content Partner: SmartPros Ltd.
    QAS: QAS Certified based on 50 minute hours.
    Course Type: Self-study
    Minimum Passing Grade: 70%
    Soft/Hardware Reqs.:  Adobe Acrobat® Reader for the .pdf files
     Adobe® Flash® Player 8 or higher
     56k or Greater Internet Connection
     Modern DHTML Compatible Browser
     Ram: 256 MB minimum
     Windows or Mac OS
    Release/Expiration Dates: Jan 11, 2013 / Dec 31, 2019