Principles Of Costing Course in Riyadh

Principles of Costing Course Outline

GLH: 50

Module 1: Understand the Cost Recording System Within an Organisation

• Collection and Classification of Costs in Different Types of Organisations
  • How Costs are Collected in Different Organisations
  • How Elements of Cost are Classified
  • How Costs are Classified by Nature
  • How Costs are Classified by Behaviour
  • Difference Between Product Costs and Period Costs
• Costing Techniques Used in Organisations
  • How Product Cost Is Determined
  • Inventory Valuation Methods
  • Labour Costing Method
  • Overhead Absorption Methods
• Relationships Between Costing and Financial Accounting Systems Within Organisations
  • Costing and Financial Accounting Systems Within an Organisation
  • How Each System Uses Costs
• Sources of Information on Income and Expenditure
  • How Historic Cost Is Used for Accounting and Cost Reporting
  • How Costing Systems Use Actual or Budgeted Costs to Determine Unit/Job/Batch Costs
  • How Budgeted and Actual Costs Are Useful for Planning and Control Purposes
• Differences Between Cost, Profit and Investment Centres
  • Differences Between Cost, Revenue, Profit and Investment Centres
  • Use of Different Centres In Different Organisations
• Classification and Recording of Labour And Overheads
  • How Costs Are Classified by Element, Nature, Behaviour And Function
  • How Costs Are Coded Using Numeric, Alphabetic and Alphanumeric Coding Systems
  • Different Costs Included in A Manufacturing Account
  • How A Manufacturing Account Is Constructed

Module 2: Use Cost Recording Techniques

• Calculate Cost of Inventory Issues and Inventory Valuations
  • Costs issues of Inventory for Management Accounting Purposes Using FIFO, AVCO and LIFO
  • Calculate Closing Values of Inventory Using FIFO, AVCO and LIFO
  • Analyse And Report on Inventory Control Policy Compliance Including Buffer Stocks and Reorder Quantities and Timings
• Calculate Labour Payments
  • Calculate Labour Payments
• Calculate Overhead Absorption Rates
  • Calculate Overhead Absorption Rates to Arrive at Unit Cost
• Use Cost Behaviour To Calculate Total and Unit Costs
  • Understand That Variable Costs Per Unit Remain the Same at Different Levels of Output but Fixed Costs Per Unit Will Change
  • Total Cost Per Unit Will Also Change as It May Be Made Up of Fixed, Variable, Semi-Variable and Stepped Costs
  • Calculate Total and Unit Costs at Different Levels of Output
  • Recognise Changes in Different Costs as Output Levels Change
• Calculate the Costs of a Product
  • How Direct Cost is a Component of Product Cost
  • Different Treatment of Product Costs and Period Costs
  • Components
  • Calculate Product Costs
  • Calculate Costs of Products in Manufacturing Organisations:
  • Calculate Costs of Products in Service Organisations

Module 3: Provide Information on Actual and Budgeted Costs and Income

• Actual and Budgeted Costs and Income
  • How Budgets Are Used for Short-Term Planning and Control
  • Different Types of Budget
  • How to Determine if a Variable Is Adverse or Favourable for Budgeted Costs and Income
  • Prepare Budgets for Single Product Organisations
  • Calculate Variances Between Actual and Budgeted Costs and Income
  • Calculate Variances as a Percentage of Budgeted Costs and Income
• Exception Reporting to Identify Significant Variances
  • Identify Significant Variances According to an Organisation's Policy
  • Analyse and Report on the Potential Causes of Variances
  • Analyse and Report on the Potential Effects of Variances
  • Report Variance Analysis to Relevant Manager

Module 4: Use Tools and Techniques to Support Cost Calculations

• Enter and Format Data
• Enter Data into Specified Cells
• Format Cells
• Format Numbers
• Copy and Paste Cells
• Insert Rows and Columns
• Use Formulas to Support Cost Calculations
• Use Basic Formulas

Who should attend this Principles of Costing Course?

This course is designed for learners progressing through the AAT Level 2 Certificate in Accounting who want to strengthen their knowledge of costing. It is particularly useful for those in roles such as:

• Accounts Assistant
• Finance Administrator
• Costing Clerk
• Purchase Ledger Clerk
• Trainee Accountant
• Office Support Staff in finance

Prerequisites of the Principles of Costing Course

There are no strict prerequisites. However, completing earlier AAT Level 2 modules such as Introduction to Bookkeeping or Principles of Bookkeeping Controls, or having basic accounting knowledge, is recommended.

Principles of Costing Course Overview

The Principles of Costing course introduces learners to fundamental costing principles used in business. It focuses on understanding cost classification, recording costs, and using cost information to support management decisions.

This 50-hour training provides learners with the confidence to work with different costing methods and contribute to financial planning within organisations. It combines theory with practical examples to ensure learners can apply costing principles in real workplace scenarios.

Completing this course supports learners in progressing within the AAT Level 2 Certificate in Accounting and prepares them for advanced studies in management accounting.

Principles of Costing Course Objectives

• To understand basic costing principles and terminology
• To learn how to record and analyse cost information
• To classify costs for different business purposes
• To develop confidence in preparing simple cost reports
• To build a foundation for advanced management accounting modules

What’s Included in this Principles of Costing Course?

• World-Class Training Sessions from Experienced Instructors
• Course Completion Certificate
• Digital Delegate Pack