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: March 13, 2024
18 Reviews (76 ratings)


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
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
This course provides a good foundation in managerial accounting. At times some of the analysis of the numerical examples were a bit redundant, but overall it is a great explanation.

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
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
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.

Member's Profile
Slides are effective and instructor is very knowledgeable. Easy to understand concepts. Time well spent.

Anonymous Author
Excellent course that goes through many different cost accounting principles

Member's Profile
Supplemental materials were not able to download properly on my computer.

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
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 .
Instructor for this course
Course Syllabus
  Introduction to Operations and Manufacturing Cost Management14:14
  REVIEW QUESTIONS: Flow and Measurement of Inventory quiz
  2 The Relevant Range7:08
  REVIEW QUESTIONS: The Relevant Rangequiz
  3 Mixed Costs12:17
  REVIEW QUESTIONS: Mixed Costsquiz
  4 Absorption and Variable Costing14:20
  REVIEW QUESTIONS: Absorption and Variable Costing quiz
  5 Joint Costs: Allocation Methods16:49
  REVIEW QUESTIONS: Joint Cost Allocation Methodsquiz
  6 Joint Costs: Constant Gross Margin % NRV Method11:56
  7 Joint Cost Allocation Method Comparison and Allocation of By-Product Costs6:12
  REVIEW QUESTIONS: Joint Cost Allocation Method Comparisonquiz
  8 Job-Order Costing3:21
  9 Process Costing Basics9:40
  10 Process Costing Methods15:24
  REVIEW QUESTIONS: Process Costing Methodsquiz
  11 Activity Based Costing17:34
  REVIEW QUESTIONS: Activity Based Costingquiz
  12 Life Cycle Costing7:32
  13 Service Department Allocations #19:45
  REVIEW QUESTIONS: Service Department Allocations #1quiz
  14 Service Department Allocations #211:09
  REVIEW QUESTIONS: Service Department Allocations #2 quiz
  15 Supply Chain Management16:00
  REVIEW QUESTIONS: Supply Chain Managementquiz
  16 Theory of Constraints17:17
  REVIEW QUESTIONS: Theory of Constraintsquiz
  17 Capacity Management10:57
  18 Value Chain Analysis11:13
  REVIEW QUESTIONS: Value Chain Analysisquiz
  19 Process Analysis14:27
  20 Best Practice Analysis6:30
  21 Cost of Quality8:10
  REVIEW QUESTIONS: Cost of Qualityquiz
  Operations and Manufacturing Cost Management4:01:54
  Slides: Operations and Manufacturing Cost ManagementZIP
  Operations and Manufacturing Cost Management Glossary/IndexPDF