Accounting

Management and Cost Accounting 2 / Limitations of Accounting (D_S6M5)


Description
COURSE DESCRIPTION:
This course will equip users with an understanding of key costs and managerial accounting techniques used in costs control, costs management and planning; and limits to accounting and planning for crises.


BACKGROUND:
Cost-volume-profit analysis is a powerful tool for managerial decision making. Managers need to estimate future revenues, costs, and profits to help them plan and monitor operations. They use cost-volume-profit (CVP) analysis to identify the levels of operating activity needed to avoid losses, achieve targeted profits, plan future operations, and monitor organizational performance. Managers also analyse operational risk as they choose an appropriate cost structure.
Cost-volume-profit (CVP) analysis is a technique that examines changes in profits in response to changes in sales volumes, costs, and prices. Accountants often perform CVP analysis to plan future levels of operating activity and provide information about:
• Which products or services to emphasize
• The volume of sales needed to achieve a targeted level of profit
• The amount of revenue required to avoid losses
• Whether to increase fixed costs
• How much to budget for discretionary expenditures
• Whether fixed costs expose the organization to an unacceptable level of risk


LEARNING OUTCOMES:
Upon the completion of this module, users will be able to:
• Assess the literature to determine the limitations of accounting including: Intangibles, Human Capital & Goodwill – Recognition, Valuation & Amortization; Audit – Internal & External; and IT Systems in Accounting. Apply in planning for crises in accounting.


TIME: Up to 2 Hours


OTHER INFORMATION:
• No prerequisites.
• No materials distributed.
• No formal assessments required.
Content
  • S6. Lecture 5 - Management and Cost Account 2 / Limitations of Accounting
  • S6 Linkage Map.pdf
  • S6. Accounting - Course Linkage Table
Completion rules
  • All units must be completed
  • Leads to a certification with a duration: Forever