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Alternative Costing Methods II Logo cgma

  Kaplan Publishing Limited |   Free |   AICPA |   Jul 2015 |   Business Mgmt. & Organization |   AICPA Store
Who Will Benefit?
  • Management accountants wanting to develop skills in financial performance management
  • CGMA exam candidates
Key Topics
  • Part I
    • Target costing
    • Value analysis and value engineering
    • Functional analysis
    • The value chain
    • Life-cycle costing
  • Part II
    • The steady state
    • Learning curves and management accounting
    • General conditions for a learning curve to apply
    • Experience curves
Learning Objectives

When you complete this course, you will be able to:

  • Part I
    • Identify costing techniques for enhancing long-term profits
    • Calculate target costs
    • Identify activities in the value chain
    • Identify costs included in life cycle costing
  • Part II
    • Calculate learning curve rates
    • Apply learning curves to estimate time and cost for activities, products and services
This CPE course is included in the 60+ hours of Financial Performance Management Program. It can also be purchased individually or as a part of Cost Accounting and Management.

This CPE course is broken into two parts, Part I: Costing Techniques and Part II: Learning Curves. 

Part I examines the target costing approach which is a form of life-cycle costing and is a pro-active cost control system. This part defines target costing and covers topics such as, using target cost in the concept and design stages, and target costing for existing products. It includes several scenarios to apply your understanding of target costing and cost gap, the value chain, and life-cycle costing. In addition, this part explores value analysis and value engineering, and functional analysis.

Knowledge of the learning curve for a new product can be very useful when applying management accounting techniques, such as budgeting, pricing decisions and work scheduling.

Part II, not only includes a background on learning curves, but it explores logarithms and contains multiple illustrations. In addition, this part examines when general conditions for a learning curve apply as well as experience curves, which are similar to learning curves but they cover all costs, not just labor costs.

Topics covered:
  • Management accounting: Technical: Cost accounting & management: Cost accounting, Foundational
  • Management accounting: Technical: Cost accounting & management: Cost management, Foundational