This course is part of the Cost Accounting Specialization

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Gunther Friedl +3 more instructors

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Cost Accounting SpecializationTechnische Universität München (TUM)

About this Course

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Companies do not only need to know the costs of different products, but they also need to know whether they gain a profit or realize a loss. We explain how companies use cost information to calculate their profit and assess their profitability. Depending on how companies account for changes in inventories, we distinguish "absorption costing" and "variable costing". In addition, some companies structure their income statement according to the "nature of expense method", while others structure it according to the "cost-of-sales method". We explain both methods and discuss their advantages and disadvantages.

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Course 2 of 3 in the

Cost Accounting Specialization

Intermediate Level

Knowledge of the basics of cost accounting, e.g. product and service costing.

Approx. 3 hours to complete

English

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What you will learn

You will learn different methods of preparing an income statement.
You will learn to explain why different methods yield different profit numbers.
You will learn to choose the best-suited method for your decision situation.

Skills you will gain

Income Statement
Contributin-margin accounting
Absorption and variable costing

Flexible deadlines

Reset deadlines in accordance to your schedule.

Shareable Certificate

Earn a Certificate upon completion

100% online

Start instantly and learn at your own schedule.

Coursera Labs

Includes hands on learning projects.

Learn more about Coursera Labs

Course 2 of 3 in the

Cost Accounting Specialization

Intermediate Level

Knowledge of the basics of cost accounting, e.g. product and service costing.

Approx. 3 hours to complete

English

Could your company benefit from training employees on in-demand skills?

Try Coursera for Business

Instructors

Instructor rating

4.4/5 (5 Ratings)

Offered by

Technische Universität München (TUM)

Technische Universität München (TUM) is one of Europe’s top universities. It is committed to excellence in research and teaching, interdisciplinary education and the active promotion of promising young scientists. The university forges strong links with companies and scientific institutions across the world. TUM was one of the first universities in Germany to be named a University of Excellence. TUM does not pass any personal data to the platform providers. If you take part in one of our MOOCs, please refer to the data protection guidelines in the terms and conditions of the provider.

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Syllabus - What you will learn from this course

Week1

Week 1

1 hour to complete

Methods for preparing an income statement

Companies do not only need to know costs of different products, but they also need to know their operating income - did we make a profit or did we face a loss? To calculate the operating income, companies prepare an income statement that compares total revenues and total costs. In this module, we show you how companies prepare income statements to link costs and revenues and to assess the company’s profitability.

1 hour to complete

3 videos (Total 17 min), 4 readings, 4 quizzes

Week2

Week 2

2 hours to complete

Absorption and variable costing

2 hours to complete

4 videos (Total 22 min)

4 videos

Comparison of income statements and financial accounting1mComparing operating income under absorption and variable costing9mComparing operating income for multiple periods6mIncentives for undesirable buildup of inventory under absorption costing5m

4 practice exercises

Income statements and financial accounting6mAbsorption costing and variable costing8mAbsorption vs. variable costing in multiple periods20mProduct costing and profit calculation20m

Week3

Week 3

1 hour to complete

Contribution-margin accounting

Many companies use contribution margin accounting to measure success instead of the income-statement formats. Contribution margin accounting is a special income-statement format that displays variable and fixed costs separately. In this module, we discuss the advantages of contribution margin accounting over traditional income statements. Further, we outline the differences of simple contribution margin accounting and multi-leveled contribution margin accounting.

1 hour to complete

2 videos (Total 7 min), 2 readings, 3 quizzes

Reviews

4.6

5 reviews

5 stars
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4 stars
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3 stars
10.71%

TOP REVIEWS FROM COST ACCOUNTING: PROFIT AND LOSS CALCULATION

by NKMar 9, 2022

Even better than the first part "Product Costing". Especially enjoyed the quizzes in this one!

View all reviews

About the Cost Accounting Specialization

View the Specialization trailer: https://www.youtube.com/watch?v=XE5Rx91bdYw

Many corporate decisions need cost accounting information. When you know the costs of your products, you will make better pricing decisions and you can better choose which products to offer. When you know the costs of your departments, you can better detect inefficiencies and you can better incentivize your employees. In this Specialization, you will learn the fundamentals of cost accounting. Three courses cover the basics of cost accounting. We will start with an introduction to product costing. How can you figure out the costs of your individual products? Next, we will discuss how to connect cost information with revenue information to calculate profits and profitability. Finally, we focus on how to use the information provided by cost accounting systems to optimize your business decisions. We have created the courses of this Specialization for interdisciplinary young professionals seeking to develop cost accounting skills. At the same time, the courses can help students in management and business administration to repeat the content of their introductory cost accounting course.

Frequently Asked Questions

When will I have access to the lectures and assignments?
Access to lectures and assignments depends on your type of enrollment. If you take a course in audit mode, you will be able to see most course materials for free. To access graded assignments and to earn a Certificate, you will need to purchase the Certificate experience, during or after your audit. If you don't see the audit option:
The course may not offer an audit option. You can try a Free Trial instead, or apply for Financial Aid.
The course may offer 'Full Course, No Certificate' instead. This option lets you see all course materials, submit required assessments, and get a final grade. This also means that you will not be able to purchase a Certificate experience.
What will I get if I subscribe to this Specialization?
When you enroll in the course, you get access to all of the courses in the Specialization, and you earn a certificate when you complete the work. Your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile. If you only want to read and view the course content, you can audit the course for free.
Is financial aid available?
Yes. In select learning programs, you can apply for financial aid or a scholarship if you can’t afford the enrollment fee. If fin aid or scholarship is available for your learning program selection, you’ll find a link to apply on the description page.

More questions? Visit the Learner Help Center.

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Cost Accounting: Profit and Loss Calculation

About this Course

What you will learn

Skills you will gain

Instructors

Gunther Friedl

Marcus Witter

Peter Schaefer

Eline Schoonjans

Offered by

Technische Universität München (TUM)

Syllabus - What you will learn from this course

Methods for preparing an income statement

Absorption and variable costing

Contribution-margin accounting

Reviews

TOP REVIEWS FROM COST ACCOUNTING: PROFIT AND LOSS CALCULATION

About the Cost Accounting Specialization

Frequently Asked Questions

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Cost Accounting: Profit and Loss Calculation

About this Course

What you will learn

Skills you will gain

Instructors

Gunther Friedl

Marcus Witter

Peter Schaefer

Eline Schoonjans

Offered by

Technische Universität München (TUM)

Syllabus - What you will learn from this course

Methods for preparing an income statement

Absorption and variable costing

Contribution-margin accounting

Reviews

TOP REVIEWS FROM COST ACCOUNTING: PROFIT AND LOSS CALCULATION

About the Cost Accounting Specialization

Frequently Asked Questions

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