[01] INTRODUCTION

Trading entities buy its trading goods from other suppliers and are sold to their customers in their original form (or with minor value add-on). A manufacturer on the other hand, buys “raw materials” from suppliers and through an elaborate process converts them into finished goods where they are then sold. Unlike a trading entity where cost management is restricted to the function of purchasing, a manufacturer has to deal with costs in its entire manufacturing process from raw materials to production overheads.

Accounting personnel in a manufacturing environment need to know how financial transactions on manufacturing activi- ties are taken up in the accounts. They also need an under- standing of cost concepts, costing methodologies and how cost of production outputs (products) are determined: and finished goods and work-in-progress are valued. And lastly, the preparation of the Manufacturing Account to be incorpo- rated as part of the Profit & Loss Account.

To add value to the process, an appreciation of mechanism and working of budgetary control is required for any effective management of cost. Budgetary Control is a means of control in which the actual results are compared with the budgeted results so that appropriate action may be taken about any deviations (variance) between the two. 

[02] COURSE OBJECTIVES

• Understand and apply cost concepts and behaviors; and costing methodologies and their impacts and applications on costing and pricing of products for financial reporting and decision making

• Learn to open the relevant manufacturing GL accounts and do up the accounting entries to record the manufacturing activities in a company

• Learn to prepare the Manufacturing Account (Statement), understand the various components in it and see how it is integrated with the Trading, Profit & Loss Account (Income Statement)

• Know the benefits of Budgetary Control and apply the concept of variance analysis in the oversight of the budget and use them to examine and address the variances between the budget and actual performance for better control and co-ordination of the business

• Learn to deal with the variances and do up the entries into the GL at month end, and to close them off at year end

[03] WHO SHOULD ATTEND

• Accounting personnel who need a good understanding of the working of manufacturing accounts: cost concepts, costing methodologies and budgetary control to better perform their roles in a manufacturing environment

• Self-employed accounting personnel working in a factory like environment.

• Managers and executives of non-finance departments who need to work closely with the finance and production departments.

• Anyone who wish to acquire an understanding of accounting in a manufacturing environment: and to appreciate the impact of cost concepts and costing, and the role of budgetary control in the said environment. 

[04] METHODOLOGY

Interactive lectures plus hands-on exercises, case studies and group discussions. 

[05] DATE, TIME, FEE

Date :     18-19 January 2024 (Thu-FrI)

Time :     9.00am - 5.00pm

Mode:    Online/ Interactive

FEE  |  [ HRD Corp Claimable ]

   - Normal Fee - RM 1,400

 >> Fee includes Course Notes, Meals, Certificate of Completion and 6% Service Tax

** OFFER **

- 10% Cashback for SST2u Learner Card+ (SLC+) members. T&Cs applied.

[06] COURSE OUTLINE

Module 1 - Introduction & Overview

• Definition of Manufacturing 

• Flow of Manufacturing Costs 

• Manufacturing Accounts

Module 2 - Cost Concept and Costing Methodologies

• Cost Definitions, Concepts and Behaviors 

• Cost Allocation & Apportionment

• Differentiating Marginal Costing and Full Costing 

• Activities and ABC

• Standard Costing

Module 3 - Manufacturing Accounting

• Differentiating Marginal Costing and Full Costing 

• Activities and ABC

• Standard Costing

• Inventories – Raw Material, WIP & Finished Goods 

• Work-in-Process (WIP)

• Case Study – Doing up the GL entries

Module 4 - Manufacturing Account & Adjustments

• Preparing the Manufacturing Account

• Linking to Trading and Profit & Loss Account 

• Adjusting unrealized profits and over/under applied overheads

Module 5 - Budgetary Controls

• Budgeting – Management Tool and Profit Plan 

• Defining Budgetary Control

• Planning & Flexible Budgets

• Variance Concept & Analysis

• Variances – Material, Direct Labour and Overheads 

• Case Study – Variance Analysis 

[07] TRAINER PROFILE

WINSON HAN CA (M) CA (ANZ) B COM 

- Chartered Accountant, Consultant, HRDF Certified Trainer

Winson is a Chartered Accountant by profession and has over 30 years of experience having served in various roles as practicing accountant, company secretary, financial controller and management consultant.

He presently consults and advises companies to better manage their businesses through an integrated process covering strategic planning; tactical design, planning (financial and otherwise) and implementation; and monitoring, review and analysis. A key focus of his consultancy is to help clients to better manage and utilize their cash resources and to restore a financially sickened company to good health.

Besides consulting, Mr. Han is also actively involved in conducting public and in-house seminars targeting the non-financial audience in financial management and analysis, financial planning & budgeting, cost management, SST/GST and credit and cash flow management. He is a PSMB (HRDF) certified trainer and holds a degree in commerce from New Zealand and is a member of the newly merged institute known as “Chartered Accountants Australia and New Zealand” and Malaysian Institute of Accountants. 

[08] REGISTRATION & ENQUIRY

Email: yes@sst2u.com 

Enquiry:

- Teo (011 - 3178 9203)

- Logesh (012 - 503 0346)

- Siti (012 - 383 8603)

- Han (019 - 323 0507)