Cost Management: Accounting and Control

1. Introduction
2. Cash vs. Accrual 00:02:54
3. Purpose of GAAP Accounting 00:05:28
4. Importance of Matching in GAAP 00:05:56
5. Importance of Matching in GAAP 00:07:35
6. GAAP Accounting Vs. Tax Accounting 00:11:59
7. Terminology 00:13:04
8. Inventory Methods 00:14:51
9. Periodic Inventory System 00:15:22
10. Periodic Inventory System: Inventory Starts as Purchases 00:17:24
11. Periodic Inventory System 00:19:02
12. CGS in Periodic = A Calculation 00:21:51
13. Periodic Inventory System 00:22:51
14. Ending Inventory vs. CGS - Ending Inventory 00:29:41
15. Ending Inventory vs. CGS - Cost Of Goods Sold 00:29:23:50
16. Gross Profit 00:26:56
17. CGS vs. GP - Cost Of Goods Sold 00:24:38
18. CGS vs. GP - Gross Profit 00:24:50
19. Purchases Made at Different Prices - Goods Available for Sale 00:25:04
20. Purchases Made at Different Prices - Suppose You Sell Three 00:26:27
21. Purchases Made at Different Prices - Price Graph 00:24:46
22. Purchases Made at Different Prices -  Ending Inventory Count 00:27:46
23. LIFO: Last In First Out 00:29:23
24. FIFO: First In First Out 00:31:07
25. LIFO: Last In First Out - Income Statement 00:34:18
26. FIFO: First In First Out - Income Statement 00:35:00
27. The Weighted Average Cost Alternative 00:38:09
28. LIFO: Last In First Out 00:40:04
29. FIFO: First In First Out 00:40:17
30. Takeaways 00:41:09
31. The Real Cost of Employees 00:42:29
32. Employee Breakdown 00:43:52
33. The Real Cost OF An Employee 00:47:13
34. Employee Cost Breakdown - Payroll 00:48:51
35. Employee Cost Breakdown - Benefits (Required) 00:49:21
36. Employee Cost Breakdown - Benefits (Optional) 00:51:18
37. Employee Cost Breakdown -Summary 00:53:02
38. Employee Cost Breakdown - Administrative, Resources, And Workspace
39. Project Cost Management 00:55:34
40. Elements of Project Cost Management 00:57:29
41. Direct Costs 00:57:59
42. Indirect Costs 00:58:50
43. Variable Costs 01:00:26
44. Fixed Costs 01:01:24
45. Steps in Project Cost Management 01:02:22
46. Human Resource Planning 01:04:49
47. Scenario Planning in a Nutshell 01:06:44
48. Entity-Level Scenario Planning 01:07:26
49. Functional Level Scenario Planning 01:07:54
50. Proper Resource Planning 01:10:07
51. Capital Budgeting Techniques 01:10:12
52. Financing Cash Flows 01:13:16
53. Financing Cash Flow Confusion 01:14:39
54. Assessing the Need for Capital 01:16:48
55. Estimating Costs 01:18:33
56. Cost Estimation Techniques 01:18:40
57. Cost Estimator 01:19:04
58. Analogous Cost Estimating 01:21:11
59. Parametric Estimating - Methods 01:22:56
60. Parametric Estimating - Smaller Projects Units 01:23:51
61. 3-Point Estimating - Graph 01:24:56
62. 3-Point Estimating - Formula 01:25:54
63. 3-Point Estimating - Line Graph 01:27:52
64. Bottom-Up Estimating - Activities 01:28:26
65. Bottom-Up Estimating - Phase or Deliverable 01:28:52
66. Bottom-Up Estimating - Project 01:29:13
67. Budgeting 01:29:38
68. Budgeting Cycle 01:29:47
69. Budgeting Cycle - Importance 01:31:07
70. Phases of Budgeting - Preparing And Submitting Budgets 01:33:23
71. Phases of Budgeting - Getting the Budget Approved 01:33:47
72. Phases of Budgeting - Execution of the Budget 01:34:16
73. Phases of Budgeting - Evaluation of the Budget 01:34:38
74. Internal Controls 01:36:02
75. Elements of Internal Controls 01:36:41
76. Segregation of Duties 01:38:19
77. Authorizations and Approvals 01:39:05
78. Security of Cash 01:39:40
79. Speaker Closing 01:41:04
80. Presentation Closing 01:41:27

• 3-Point Estimating 01:18:59, 01:25:00
• Accelerated Depreciation 00:10:13, 00:35:54
• Accounting (ACCG) 00:10:36, 00:37:01
• Accrual Method Of Accounting 00:03:16, 00:04:13
• Balance Sheet (BS) 00:39:38
• Bottom-Up Estimating 01:19:00, 01:28:29
• Capital Needs Assessment (CNA) 01:17:44
• Cash Flow (CF) 01:13:19
• Cash Method Of Accounting 00:03:14, 00:04:06
• C Corporation 00:40:39
• Cost 00:01:07, 00:03:01, 00:03:43, 00:08:02, 00:13:09, 00:16:01, 00:24:07, 00:46:54, 00:55:17, 01:11:12
• Cost Management 00:56:09
• Cost Of Goods Sold (COGS) 00:17:52, 00:21:24, 00:24:03, 00:24:57, 00:30:48
• Depreciation 00:05:34, 00:08:21, 00:35:36, 00:56:16
• Direct Costs 00:55:41, 00:57:41, 00:57:59
• Expenditure 00:12:30
• Expense 00:03:56
• Federal Insurance Contributions Act (FICA) 00:54:41
• FIFO 00:31:11, 00:39:46, 00:40:20
• Fixed Costs 00:57:46,  01:01:24
• Generally Accepted Accounting Principles (GAAP) 00:05:28, 00:12:06
• Gross Profit (GP) 00:24:16, 00:25:03, 00:34:28
• Income Statement 00:39:38
• Independent Contractor 00:54:32
• Indirect Costs 00:57:43, 00:58:50
• Inventory 00:15:07, 00:19:30, 00:23:16, 00:25:12, 00:35:33, 00:40:12
• LIFO 00:29:27, 00:39:4600:40:06
• Parametric Estimating 01:18:57, 01:22:58
• Periodic Inventory System 00:15:33
• Present Value (PV) 01:13:01
• Revenue 00:06:36, 00:13:24
• Salvage Value 00:11:12
• S Corporation 00:40:37
• Straight Line Depreciation 00:08:31, 00:35:50
• SWOT Analysis 01:06:04
• Transaction 00:04:22, 01:13:43
• Variable Costs 00:57:45, 01:00:26
• Wage 00:53:08

3-Point Estimating: The three-point estimation technique is used in management and information systems applications for the construction of an approximate probability distribution representing the outcome of future events, based on very limited information.

Accelerated Depreciation: Accelerated depreciation refers to any one of several methods by which a company, for 'financial accounting' or tax purposes, depreciates a fixed asset in such a way that the amount of depreciation taken each year is higher during the earlier years of an asset's life.

Accounting (ACCG): A systematic way of recording and reporting financial transactions for a business or organization.

Accrual Method Of Accounting: Accrual accounting is an accounting method where revenue or expenses are recorded when a transaction occurs versus when payment is received or made. The method follows the matching principle, which says that revenues and expenses should be recognized in the same period.

Balance Sheet (BS): A financial report that summarizes a company's assets (what it owns), liabilities (what it owes) and owner or shareholder equity at a given time.

Bottom-Up Estimating: Bottom-up estimating involves the estimation of work at the lowest possible level of detail. These estimates are then aggregated in order to arrive at summary totals. By building detailed cost and time estimates for a work package, the probability of being able to meet the estimated amounts improves substantially..

C Corporation: A C corporation, under United States federal income tax law, refers to any corporation that is taxed separately from its owners. A C corporation is distinguished from an S corporation, which generally is not taxed separately. Most major companies are treated as C corporations for U.S. federal income tax purposes.

Capital Needs Assessment (CNA): A Capital Needs Assessment (CNA) is a systematic assessment to determine a Property's physical capital needs over the next 20 years based upon the observed current physical conditions of a Property.

Cash Flow (CF): The revenue or expense expected to be generated through business activities (sales, manufacturing, etc.) over a period of time.

Cash Method Of Accounting: Cash accounting is an accounting method where payment receipts are recorded during the period in which they are received, and expenses are recorded in the period in which they are actually paid. In other words, revenues and expenses are recorded when cash is received and paid, respectively.

Cost: The sum of the applicable expenditures and charges directly or indirectly incurred in bringing an article to its existing condition and location

Cost Management: Cost management is the process of estimating, allocating, and controlling project costs. The cost management process allows a business to predict future expenses to reduce the chances of budget overrun. Projected costs are calculated during the planning phase of a project and must be approved before work begins.

Cost Of Goods Sold (COGS): The direct expenses related to producing the goods sold by a business. The formula for calculating this will depend on what is being produced, but as an example this may include the cost of the raw materials (parts) and the amount of employee labor used in production.

Depreciation: A reduction in the value of an asset with the passage of time, due in particular to wear and tear.

Direct Costs: Direct costs are expenses that directly go into producing goods or providing services, while indirect costs are general business expenses that keep you operating. Examples of direct costs are direct labor, direct materials, commissions, piece-rate wages, and manufacturing supplies.

Expenditure: An expenditure is money spent on something. Expenditure is often used when people are talking about budgets.

Expense: Offset (an item of expenditure) as an expense against taxable income.

FIFO: FIFO and LIFO accounting are methods used in managing inventory and financial matters involving the amount of money a company has to have tied up within inventory of produced goods, raw materials, parts, components, or feedstocks.

Federal Insurance Contributions Act (FICA): The Federal Insurance Contributions Act is a United States federal payroll contribution directed towards both employees and employers to fund Social Security and Medicare—federal programs that provide benefits for retirees, people with disabilities, and children of deceased workers.

Fixed Costs: Fixed cost is referred to as the cost that does not register a change with an increase or decrease in the quantity of goods produced by a firm.

Generally Accepted Accounting Principles (GAAP): A set of rules and guidelines developed by the accounting industry for companies to follow when reporting financial data. Following these rules is especially critical for all publicly traded companies.

Gross Profit (GP): Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. Gross profit will appear on a company's income statement and can be calculated by subtracting the cost of goods sold (COGS) from revenue (sales).

Income Statement: One of the three primary financial statements used to assess a company's performance and financial position (the two others being the balance sheet and the cash flow statement). The income statement summarizes the revenues and expenses generated by the company over the entire reporting period. (investinganswers.com)

Independent Contractor: An independent contractor is a person or entity contracted to perform work or provide services to another entity as a non-employee. As a result, independent contractors must pay their own Social Security and Medicare taxes. - Investopedia (https://www.investopedia.com/)

Indirect Costs: Indirect costs are costs that are not directly accountable to a cost object. Indirect costs may be either fixed or variable. Indirect costs include administration, personnel, and security costs. These are those costs that are not directly related to production. Some indirect costs may be overhead. Examples of indirect costs are production supervision salaries, quality control costs, insurance, and depreciation.

Inventory: A company's inventory typically involves goods in three stages of production: raw goods, in-progress goods, and finished goods that are ready for sale. Inventory or stock refers to the goods and materials that a business holds for the ultimate goal of resale, production or utilization.

LIFO: LIFO stands for “Last-In, First-Out”. It is a method used for cost flow assumption purposes in the cost of goods sold calculation. The LIFO method assumes that the most recent products added to a company’s inventory have been sold first. The costs paid for those recent products are the ones used in the calculation.

Parametric Estimating: Parametric estimating is quantitative and uses statistics to calculate the expected amount of resources needed to complete your project, whether it be cost or time, or even human resources.

Periodic Inventory System: With a periodic inventory system, a company physically counts inventory at the end of each period to determine what's on hand and the cost of goods sold. Many companies choose monthly, quarterly, or annual periods depending on their product and accounting needs.

Present Value (PV): The current value of a future sum of money based on a specific rate of return. Present value helps us understand how receiving $100 now is worth more than receiving $100 a year from now, as money in hand now has the ability to be invested at a higher rate of return. See an example of the time value of money here.

Revenue: In accounting, revenue is the income that a business has from its normal business activities, usually from the sale of goods and services to customers. Revenue is also referred to as sales or turnover. Some companies receive revenue from interest, royalties, or other fees.

S Corporation: An S corporation, for United States federal income tax, is a closely held corporation that makes a valid election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code. In general, S corporations do not pay any income taxes.

SWOT Analysis: SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT analysis is a technique for assessing these four aspects of your business. SWOT Analysis is a tool that can help you to analyze what your company does best now and to devise a successful strategy for the future.

Salvage Value: Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset's estimated salvage value is an important component in the calculation of a depreciation schedule.

Straight Line Depreciation: Straight line depreciation is the most commonly used and straightforward depreciation method for allocating the cost of a capital asset. It is calculated by simply dividing the cost of an asset, less its salvage value, by the useful life of the asset.

Transaction: In QuickBooks, a transaction type identifies what kind of transaction occurred, such as a customer transaction, bill payment or a bank transfer. When you submit a transaction, you type in a transaction code to represent it.

Variable Costs: Variable costs are costs that change as the volume changes. Examples of variable costs are raw materials, piece-rate labor, production supplies, commissions, delivery costs, packaging supplies, and credit card fees. In some accounting statements, the Variable costs of production are called the “Cost of Goods Sold.”

Wage: A fixed regular payment, typically paid on a daily or weekly basis, made by an employer to an employee, especially to a manual or unskilled worker.