Instructor for this course

Taking this course will enhance your understanding of the key concepts related to managing costs in manufacturing, distribution, and service industries, with an emphasis on developing actionable insights to improve financial and operational results. Special consideration is given to accumulating costs, costing systems, the role of supply and value chains, the theory of constraints, and continuous improvements techniques

Topics include: 

  • Measurement Concepts
  • The Relevant Range
  • Mixed Costs
  • Absorption and Variable Costing
  • Joint Cost Allocation
  • Job-Order Costing
  • Process Costing
  • Activity-Based Costing (ABC)
  • Life-Cycle Costing
  • Service Department Allocations
  • Supply Chain Management
  • Theory of Constraints
  • Capacity Planning and Costing
  • Value Chain Analysis
  • Process Analysis
  • Best Practice Analysis
  • Cost of Quality

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

  • Explore cost measurement and the movement of costs between raw materials, work in process and finished goods inventories.
  • Recognize how fixed and variable costs behave in the long and short term.
  • Discover how to estimate fixed and variable portions of mixed costs using the high-low method.
  • Recognize how to calculate inventory, cost of goods sold, and operating income using both absorption and variable costing.
  • Identify the split-off point, separable costs, and by-product costing.
  • Explore how to allocate joint product costs using the physical measure, sales value at split-off, net realizable value, and constant gross margin methods.
  • Explore how to calculate inventory and cost of goods sold under job-order costing.
  • Explore the nature of process costing and recognize process costing flows. Discover how to calculate inventory values and cost of goods sold (COGS) using FIFO (first in, first out) and weighted average process costing.
  • Identify the differences between traditional overhead allocation and Activity Based Costing (ABC), and discover elements of ABC such as cost pool, cost driver, activity driver, resource driver, and non-value added activity.
  • Explore and recognize the concept of life-cycle costing.
  • Identify how to calculate service and support department cost allocation using the direct method, step-down method, and reciprocal method.
  • Identify materials requirements planning (MRP), and recognize the operational benefits of implementing Enterprise Resource Planning (ERP) and Just in Time (JIT) systems.
  • Explore and recognize the theory of constraints. 
  • Identify the five steps involved in a theory of constraints analysis.
  • Explore how the capacity level affects product costing, capacity management, pricing and financial statements.
  • Identify value chain and identify the steps in value chain analysis. Explore how value chain analysis is used to better understand a firm's competitive advantage.
  • Discover the concepts of process value analysis and business process reengineering.
  • Explore the concept of best practice analysis (benchmarking) and recognize how it can be used by an organization to improve process performance.
  • Identify the components of the costs of quality, including conformance and non-conformance costs.
Last updated/reviewed: May 8, 2022

15 Reviews (45 ratings)Reviews

Member's Profile
The topics covered in this course could take forever to cover. This does a decent job of summarizing. Was left wanting more detail in some areas, but again it could take a long time if too much detail was included.
Anonymous Author
Great refresher for working with manufacturing costs. Summarized in a way that gives focus to the key concepts with just the right amount of detail.
Anonymous Author
Generally well done - Particularly since it's a long program, I would recommend that the instructor not read all of the numbers that make up the computation on the slides. I took the course as a general refresher even though I'm not in a manufacturing environment, but the Service Department Allocations topic has been applicable at every company for which I've worked.
Member's Profile
This course is very informative and the support goes along with the power point very well. There is a lot of information so, taking the quizzes and making sure you understand the material helps with the final exam. A lot of topics are briefly covered and the information is interesting the way it is presented.
Member's Profile
A lot of useful information is given out on this course which is invaluable for any practicing controller. The concepts are not studied in depth but key issues and examples are available to ensure the core idea is easily understood and can be followed up in more details when required.
Member's Profile
great course to go back to for a refresher. Wish you all would have talked about machine rates and absorption more since those are my weakest areas.
Anonymous Author
There are many computational tasks in the tests that require reflection and understanding. interesting material, I recommend to pass
Anonymous Author
Course was well presented and provided a good overview of Operations and Cost Management. This was a good refresher.
Anonymous Author
Good overall review of all of the methods that can be used in manufacturing. Appropriate for text book learning.
Anonymous Author
Good review, and great knowledge, I will hang onto this and reference back to the methodologies for my clients.
Anonymous Author
Excellent course that goes through many different cost accounting principles
Member's Profile
This was a great overview of inventory methods and cost allocations.
Anonymous Author
Well presented, easy to follow, not dull. Informative and relevant.
Anonymous Author
Great introduction to operations and manufacturing cost management.
Anonymous Author
Very comprehensive coverage of the cost accounting.


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

Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
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
  14:14Introduction to Operations and Manufacturing Cost Management
  quizREVIEW QUESTIONS: Flow and Measurement of Inventory
  7:082 The Relevant Range
  quizREVIEW QUESTIONS: The Relevant Range
  12:173 Mixed Costs
  quizREVIEW QUESTIONS: Mixed Costs
  14:204 Absorption and Variable Costing
  quizREVIEW QUESTIONS: Absorption and Variable Costing
  16:495 Joint Costs: Allocation Methods
  quizREVIEW QUESTIONS: Joint Cost Allocation Methods
  11:566 Joint Costs: Constant Gross Margin % NRV Method
  6:127 Joint Cost Allocation Method Comparison and Allocation of By-Product Costs
  quizREVIEW QUESTIONS: Joint Cost Allocation Method Comparison
  3:218 Job-Order Costing
  9:409 Process Costing Basics
  15:2410 Process Costing Methods
  quizREVIEW QUESTIONS: Process Costing Methods
  17:3411 Activity Based Costing
  quizREVIEW QUESTIONS: Activity Based Costing
  7:3212 Life Cycle Costing
  9:4513 Service Department Allocations #1
  quizREVIEW QUESTIONS: Service Department Allocations #1
  11:0914 Service Department Allocations #2
  quizREVIEW QUESTIONS: Service Department Allocations #2
  16:0015 Supply Chain Management
  quizREVIEW QUESTIONS: Supply Chain Management
  17:1716 Theory of Constraints
  quizREVIEW QUESTIONS: Theory of Constraints
  10:5717 Capacity Management
  11:1318 Value Chain Analysis
  quizREVIEW QUESTIONS: Value Chain Analysis
  14:2719 Process Analysis
  6:3020 Best Practice Analysis
  8:1021 Cost of Quality
  quizREVIEW QUESTIONS: Cost of Quality
  4:01:54Operations and Manufacturing Cost Management
  ZIPSlides: Operations and Manufacturing Cost Management
  PDFOperations and Manufacturing Cost Management Glossary/Index