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  • By Oxford Certificate
  • November 3, 2021
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Calculating Costs And Controlling Purchased Goods And Invoices E-Learning

Virtual training is the calculation of costs and control of purchased goods and invoices to check the job and duties of the person in charge of financial documents. In accounting, the cost of goods is one of the branches of management accounting, which is used to calculate costs related to manufacturing goods. Management accounting is also a branch of accounting that collects financial information to provide to management. Cost of goods means the calculation of direct costs effective in producing a product or providing a service.

These costs include labor costs, raw materials, and construction overhead costs. In other words, the calculation of all costs that are directly or indirectly involved in the production of goods or services. Business expenses, including administrative and organizational expenses and distribution, marketing and sales expenses, will not be included in the calculations. Due to the greater use of this branch of accounting in the manufacturing industry, the term calculation of the cost of production of goods has been used.

Factors influencing the calculation of the cost of goods:
Raw materials: Materials that are used directly to produce goods.
Direct wages: The cost of wages of workers and professionals who are directly involved in the production line and conversion of raw materials into the desired goods.
Construction overhead costs: All factory costs are excluded from direct costs and include the following:
Indirect materials: are not used in manufactured goods, but without their use, the production of goods is not possible. Such as greases, oils, fuels, spare parts and…
Indirect wages: include the wages of people who are not directly involved in the production of the product but whose presence is required. Such as managers’ salaries, support staff, guards and…
Other overhead costs: including rent, maintenance costs, electricity, water, and…
The chapters of the virtual training course are a calculation of costs and control of purchased goods and invoices are:
Cost analysis of goods
Allocation of construction overhead costs
Cost definition and familiarity with cost classification
Work order costing system
Stepwise costing system
The concept of standard costing
Cost, activity and profit analysis
Absorption costing and direct costing
Prerequisites for the period of calculation of costs and control of purchased goods and invoices:
This course does not require any special prerequisites and the course is taught from the beginning.

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