Traditional cost accounting systems and their emphasis on financial measurements have obscured the identification of the causes of operational and profit erosion and realistic remedies for improvement. There are other tools to effectively identify areas for improvement and opportunities for remediation—such as Activity Based Costing (ABC) and Cost-Volume-Profit (CVP) analysis and break-even analysis. These other concepts assist in developing and implementing cost systems that provide operational information to manage an organization most economically, efficiently, and effectively. The purpose of this program is to assist you in identifying the true costs of products or services and how to use cost-related techniques for effective management and control.
Upon successful completion of Analyzing Today's Business Operations: Cost Reduction Analysis, the user should be able to:discuss various cost accounting theories, including traditional versus other methods such as activity based costing,identify the elements of total cost of products and services (i.e., cost components, activities, and structures),explain assigning costs to products and services via activity drivers,develop and implement cost systems that provide for effective cost management in an ever-changing environment,discuss effective strategies for cost management, pricing strategies, and continuous improvements, andidentify opportunities where cost management techniques can be used to improve operational and profit performance.
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