To survive and succeed, companies need to be able to adapt constantly to a changing environment that requires a greater level of efficiency in the functioning of organizations’ processes and activities.
All managers within the organization are responsible for achieving company goals. To do this, they need to be concerned with the information that allows them to control and determine the results of the activities in their specific area; As well as making decisions that improve performance.
More specifically, economic information is essential to ensure that the management process is being conducted properly. The basic objective of this subject is to present the concepts, techniques and procedures that are used in cost accounting and which, when used correctly, lead to a more efficient management of the company.
The basic objectives of these sessions are to analyze the classification of costs according to their nature, their allocation or distribution on the product or service and the different cost systems, in order to reflect on their application, utility, limitations and Informative value in the decision making, by the people in charge of the management of the company. We will focus on what to do with the information, determine if it is in the interest of incorporating or continuing to manufacture a product, hire a service or buy a product, decide what price to indicate, start or abandon an activity, expand or decrease capacity as part of some of the decisions That could be taken at the business level.
The material we are going to see can be divided into three main parts: Nature of costs, cost systems and analysis of information for decision making.
The first part will be basically oriented towards understanding the nature of costs according to their classification of direct and indirect, fixed or variable, the operation of a variable cost system and the determination of the contribution margin as a key element for decision making in the Short term on new orders and prices.
In the second part, we will analyze the traditional cost systems and their progress to systems based on the activity, their use for the valuation of stock, and the determination of the long term benefit as a fundamental element to decide the launching or elimination of lines of business.
Finally we will deepen in the budgetary management as a tool for evaluating the operational management of the company.