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Taking this course will enhance your understanding of using standards to analyze performance for manufacturing, distribution, and service industries. Special consideration to given to understanding the importance of contribution margin, sales and cost variances, developing and analyzing overhead rates, and key performance indicators and the balanced scorecard.

Topics include: 

  • Standard Costs
  • Introduction to Variance Analysis
  • Contribution Margin
  • Flexible Budgets
  • Sales Variances
  • Direct Material Variances
  • Direct Labor Variances
  • Overhead Variances
  • Responsibility Centers
  • Transfer Pricing
  • Internal Profitability Analysis
  • The Balanced Scorecard

The content covered in this course provides a pathway to developing your analytical and critical-thinking skills and closing skills gaps in a variety of relevant topics. 

Learning Objectives

  • Identify a standard cost system and identify the reasons for adopting a standard cost system.
  • Recognize how budget variance reporting is utilized in a management by exception (MBE) environment.
  • Explore the concepts of contribution margin per unit and total contribution margin.
  • Identify and recognize the benefits and limitations of measuring performance by comparing actual results to the static or master budget.
  • Explore how to prepare a flexible budget based on actual sales volume and discover how to calculate the flexible-budget variance by comparing actual results to the flexible budget.
  • Identify the purpose of sales variance analysis and the role of contribution margin in sales variances.
  • Discover how to develop sales variances. 
  • Discover how to develop direct material and direct labor variances.
  • Discover how to develop overhead rates and variances, and recognize the impact of indirect nature of overhead on analysis.
  • Identify and recognize different types of responsibility centers
  • Identify segments that organizations evaluate, including product lines, geographical areas, or other meaningful segments.
  • Recognize transfer pricing and the objectives of transfer pricing. 
  • Discover how to calculate transfer prices using variable cost, full cost, market price, negotiated price, and dual-rate.
  • Recognize the issues in determining product, customer and business unit profitability.
  • Discover how to calculate return on investment (ROI) and residual income (RI), and compare and contrast the benefits and limitations of ROI and RI as measures of performance. 
  • Recognize the relationships between the strategic plan, key performance indicators, and the balanced scorecard.
  • Explore the concept of the balanced scorecard and identify and recognize its four perspectives.
Last updated/reviewed: November 10, 2019

4 Reviews (23 ratings)Reviews

4
Anonymous Author
Very good course materials. A lot was covered in very logical flow.
4
Anonymous Author
Well presented and thoughtful content, but a little tough to absorb in a 6 hour span. May be better in individual modules.
5
Anonymous Author
Excellent review of standard costs, variance analysis, budgeting, and management reporting. Worthwhile course.
5
Member's Profile
Great materials, liked doing the review questions in smaller increments.

Prerequisites

Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course. However, it is recommended to take the other courses in the series prior to completing this one.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
  9:35Introduction to Corporate Performance Management
  quizREVIEW QUESTIONS: Standard Costs
  7:302 Introduction to Variance Analysis
  quizREVIEW QUESTIONS: Introduction to Variance Analysis
  6:083 Contribution Margin
  13:004 Flexible Budgets
  quizREVIEW QUESTIONS: Flexible Budgets
  16:515 Sales Variances
  quizREVIEW QUESTIONS: Sales Variances
  17:546 Sales Mix and Sales Quantity Variances
  17:357 Direct Material Variances
  quizREVIEW QUESTIONS: Direct Material Variances
  10:158 Direct Labor Variances
  quizREVIEW QUESTIONS: Direct Labor Variances
  20:009 Labor Rate and Efficiency Variances
  12:3510 Labor Mix and Yield Variances
  quizREVIEW QUESTIONS: Labor Mix and Yield
  9:0211 Overhead Absorption
  6:0912 Variable Overhead Variances
  8:0813 Fixed Overhead Variances
  quizREVIEW QUESTIONS: Fixed Overhead Variances
  19:1314 Responsibility Centers
  quizREVIEW QUESTIONS: Responsibility Centers
  14:5615 Transfer Pricing
  quizREVIEW QUESTIONS: Transfer Pricing
  7:3616 Internal Profitability Analysis
  9:0917 Return on Investment and Residual Income
  14:1518 The Balance Score Card
  quizREVIEW QUESTIONS: The Balanced Scorecard
CONTINUOUS PLAY
  3:39:53Corporate Performance Management
SUPPORTING MATERIALS
  ZIPSlides: Corporate Performance Management
  PDFCorporate Performance Management Glossary/Index
REVIEW AND TEST
 examFINAL EXAM