Basics of Cost Accounting: Product Costing from Coursera

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Syllabus

Introduction to cost accounting

Welcome to Cost Accounting! In this module, we will introduce you to the basic concepts of cost accounting. You will learn what cost accounting is and how cost accounting relates to corporate accounting. Thereafter, you will get familiar with some basic cost terms that are essential for cost accountants. Finally, we will introduce you to a framework that distinguishes three sub-systems of cost accounting. This framework will guide us through the following modules.

Cost-type accounting

In this module, we will introduce you to cost-type accounting - the first of the three cost accounting sub-systems. Cost-type accounting helps companies to make their cost structure transparent. It gives companies an overview of which costs have been incurred. We will take a closer look at three important cost items namely material costs, personnel costs, and machine costs. You will learn how companies record and calculate them.

Cost-center accounting

In this module, we will dive into cost-center accounting. Cost-center accounting creates transparency about where, i.e. in which cost center, the overhead costs of a company have been incurred. It connects cost-type accounting with product costing by performing three allocation steps: First, overhead costs from cost-type accounting are assigned to cost centers. However, ultimately cost accountants want to assign the costs to cost objects. Because this is easier for costs of production-related cost centers ("direct cost centers") than for costs of "indirect cost centers" such as the IT or the canteen, companies allocate overhead costs from indirect to direct cost centers first. Finally, they determine overhead rates for the allocation of overhead costs from direct cost centers to cost objects. In this module, we will introduce you to each of these steps.

Product and service costing

In this module, we introduce you to product and service costing. Product and service costing provides companies with information about the costs of individual products or services. It is the final of the three cost accounting sub-systems. We will sometimes just refer to product and service costing as "product costing", but of course some companies offer physical products while others offer services. We explain how companies design product costing systems and we make you familiar with important methods of product costing. We also discuss how well the costing methods are suited for different production processes and program types. To this end, we will distinguish "job shop production" and "mass and batch production".

Good to know

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Introduces the fundamental concepts and principles of cost accounting, making it suitable for beginners seeking a solid foundation in cost accounting

Equips learners with the knowledge to calculate unit costs, gain transparency into cost structures, and understand overhead allocation, which aligns closely with real-world industry practices

Led by a team of experienced instructors, including Gunther Friedl, Marcus Witter, Peter Schaefer, and Eline Schoonjans, who are recognized for their contributions to the field of cost accounting

Covers key cost accounting methods and challenges, preparing learners for the complexities and challenges they may encounter in professional settings

Emphasizes product costing, enabling learners to analyze the costs associated with individual products or services, providing valuable insights for decision-making

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Basics of Cost Accounting: Product Costing with these activities:

Review managerial accounting

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Familiarize yourself with concepts from your previous coursework in managerial accounting.

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Review your lecture notes from your previous course.
Complete a practice exercise set.

Attend industry conferences

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Expand your knowledge and connect with professionals in the field.

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Research upcoming industry conferences related to cost accounting.
Register for the conference and attend the sessions that interest you.
Network with other attendees, including speakers, exhibitors, and fellow attendees.

Design a cost accounting spreadsheet

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Develop a practical tool to apply the cost accounting concepts you learn in the course.

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Identify the specific cost accounting problem you want to solve with your spreadsheet.
Research and gather the necessary data and formulas.
Create a spreadsheet model that implements the cost accounting calculations.
Test and refine your spreadsheet to ensure accuracy and usability.

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Conduct a cost analysis project

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Apply the cost accounting principles to a real-world business scenario.

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Identify a company or organization that would benefit from a cost analysis.
Contact the company or organization and propose your project.
Gather data on the company's cost structure, including materials, labor, and overhead.
Analyze the data to identify areas where costs can be reduced.
Present your findings to the company or organization.

Career center

Learners who complete Basics of Cost Accounting: Product Costing will develop knowledge and skills that may be useful to these careers:

Product Cost Accountant

A **Product Cost Accountant** would benefit greatly from taking this course. Corporate and cost accounting, as well as product costing - all of these fundamental concepts are covered in this course.

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Cost Analyst

A **Cost Analyst** may find the concepts in this course very helpful. Understanding the principles of cost accounting and product costing, two subjects covered in this course, are necessary for the job.

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Financial Analyst

This course will be very useful to a **Financial Analyst**. It covers the basics of cost accounting and product costing - two essential areas of knowledge for a Financial Analyst.

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Management Accountant

This course would be helpful for a **Management Accountant**. The course covers cost accounting, a field of accounting that is crucial for career success in this role.

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Auditor

An **Auditor** may benefit from understanding the concepts of cost accounting. This course offers a solid foundation in these concepts.

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Tax Accountant

Someone who wants to become a **Tax Accountant** may take this course to develop a solid foundation in cost accounting.

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Controller

This course would prove helpful for a **Controller**. It covers the basics of cost accounting, a crucial area of knowledge for this job role.

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Investment Banker

This course may prove useful to an **Investment Banker**. It can help build a foundation in cost accounting, which is a valuable skill in this field.

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Chief Financial Officer (CFO)

While not strictly necessary, taking this course might help a **CFO** brush up on the fundamentals of cost accounting.

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Consultant

A **Consultant** may find this course helpful. It offers a solid foundation in cost accounting and product costing, concepts that can be valuable to a consultant.

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Data Analyst

The concepts in this course may be useful for a **Data Analyst**. Cost accounting concepts, which this course covers, are important for data analysis.

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Business Analyst

A **Business Analyst** may find the concepts covered in this course to be valuable. Cost accounting concepts are often relevant to business analysis.

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Operations Manager

This course could be helpful for an **Operations Manager**. It explores topics in cost accounting that are relevant to operations management.

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Entrepreneur

For someone interested in becoming an **Entrepreneur**, this course can provide a foundation in cost accounting, which is an important skill for business owners.

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Project Manager

Understanding cost accounting can be helpful for a **Project Manager**. This course can provide a foundation in this area of accounting.

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