Instructor for this course
more

This course explains the concepts of standard costing and manufacturing variances in simple terms that individuals with and without financial background can understand and more importantly leverage for improved performance.

Finance may be the language of business, but not everyone speaks it. That's why it is often challenging to develop a common understanding of financial concepts across the organization. Financial leaders should share this course with non-financial team members to establish a common approach and leverage the organization's understanding of these concepts and drive performance.

Learning Objectives

  • Explore the concept of Standard Costs and recognize how they are developed and used.
  • Explore the concept of Variances.
  • Identify Material, Labor and Overhead variances and how they are calculated.
  • Identify Material, Labor and Overhead variances are handled from both a performance and accounting perspective

 

 

34 Reviews (121 ratings)Reviews

4
Member's Profile
As an accountant, this was a great refresher course. For non-accountants, it provides the basic knowledge to better understand the financial needs for this information as well as gaining valuable insight into the downstream business decisions.
5
Anonymous Author
Great course, highly recommended for all. Even though I have been in the field, it never hurts to brush up the basic stuff. Instructor clearly demonstrated passion and love for cost accounting. One of the best courses here!
5
Anonymous Author
A great yet simple course for understanding manufacturing variances plus mix variance. Good for strengthening your variance concepts and calcs, and great for helping you prepare the CMA exam on variances.
4
Member's Profile
Would like to have seen examples calculations incorporated into the slide PDF supporting materials Also, beneficial to have Excel template of Recap of Sales Mix Calculation made available
5
Anonymous Author
Great primer for all employees to inform them how they impact the product costs and profitablity. How various factors impact costs. Some controllable and some not such as mix and efficiency
5
Anonymous Author
Explanations are simple and clear. Examples and calculations help understand the subject better. Both finance and non-finance can benefit from this course.
5
Anonymous Author
This course was presented well, after all who doesn't like BEER. A very good breakdown of price vs volume analysis.
5
Member's Profile
Great presentation. Really liked the use of examples. Wish I had taken this course before I switched to fiancé.
4
Member's Profile
Very well-designed presentation that breaks down and discusses the key concepts, in easy to understand steps.
5
Member's Profile
I love standard cost accounting and Mr. Kulesza does a great job explaining the foundations of the concepts!
Member's Profile
good to have overview, but real world is more complex. hope another course which handles more complex cases
5
Member's Profile
Bud is simply an excellent teacher. Terrific content and he leads with a passion for what he is teaching.
4
Anonymous Author
Great examples to reinforce understanding. However, the examples are missing from the pdf slide deck.
5
Anonymous Author
The descriptive explanations on the different variances. Cost or accountants in private industry
5
Member's Profile
Very well done. Great examples. Helped solidify variances in my mind.
4
Anonymous Author
Really liked the course. I would suggest add a few more calculations.
5
Member's Profile
It was a very thorough course for the amount of time allotted.
4
Anonymous Author
Good course for a beginners understanding of cost accounting
5
Member's Profile
This course definitely simplified standard cost analysis.
5
Member's Profile
Good basic course to refresh cost accounting knowledge.
5
Member's Profile
Good review, examples were helpful to show concept.
4
Member's Profile
Excellent high level overview of standard costs.
5
Member's Profile
Very good course, liked the example and coverage
4
Member's Profile
Gives good understanding of standard costs.
5
Member's Profile
Great course! Very informative and helpful.
4
Member's Profile
Concepts were broken down effectively.
5
Anonymous Author
Well presented -practical concepts
5
Anonymous Author
Thorough and clear presentation!
4
Member's Profile
Good examples and content
5
Member's Profile
Good review of concepts
5
Anonymous Author
nicely summarized.
4
Anonymous Author
helpful overview
4
Anonymous Author
valued course
5
Member's Profile
Informative!

Prerequisites

Course Complexity: Foundational

No advanced preparation or prerequisites are required for this course.

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 .

2 QuestionsCourse Questions and Answers

Member's Profile

I have liked an overall presentation on the standar costs and variance analysis. I have one questions that who is responsible for overhead variances in terms of variable or fixed overhead costs?

Thank you,
Chirag

Member's Profile

Thanks Chirag for such a good question. I embrace the concept of responsibility accounting. Simply stated the individuals (departments) that caused the variances are those who control the variances and should accept responsibility for the costs. In the case of overhead, normally, variable costs are the costs that that we have control of and therefore are responsible for and fixed costs are often cost assigned to our departments by others for which they are in control. The key factor od responsibility is who authorized and approved the expenditure. A good example of overhead fixed costs that can vary from budget and cause variances is depreciation. While department managers bear the burden of these costs they are not responsible for things they cannot control such as unbudgeted changes in depreciation methods that they have no control over (Decision made by the Finance / Accounting Department) . However the unbudgeted increase in depreciation cause by an unbudgeted purchase of equipment would be the responsibility of the manager the individual who authorized the purchase. It doesn’t matter why the purchase was made it is that fact that the costs were not budgeted and following a responsibility accounting approach, the person making the decision is responsible for the variance. Hope this brief explanation of responsibility accounting as it relates to overhead variances answers your question.

Course Syllabus
INTRODUCTION AND OVERVIEW
  6:01Introduction to Standard Costs and Variances
Standard Costs and Variances
  15:32Standard Costs
  6:32Variances
  8:01Calculating Material, Labor, and Overhead and Variances
  12:04Example: Labor Variances
  12:08Mix Variances
CONCLUSION
  9:36Internal and External Implications of using Standard Cost and Variances
Continuous Play
  1:09:54Standard Cost and Variances Simplified
SUPPORTING MATERIALS
  PDFSlides: Standard Costs and Variances Simplified
  PDFStandard Costs and Variances Simplified Glossary/Index
REVIEW and TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM