Technical University of Munich (TUM)
Cost Accounting: Profit and Loss Calculation
Technical University of Munich (TUM)

Cost Accounting: Profit and Loss Calculation

This course is part of Cost Accounting Specialization

Taught in English

Some content may not be translated

Gunther Friedl
Marcus Witter
Peter Schaefer

Instructors: Gunther Friedl

5,329 already enrolled

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Course

Gain insight into a topic and learn the fundamentals

4.6

(53 reviews)

Intermediate level

Recommended experience

3 hours (approximately)
Flexible schedule
Learn at your own pace

What you'll 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.

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Assessments

11 quizzes

Course

Gain insight into a topic and learn the fundamentals

4.6

(53 reviews)

Intermediate level

Recommended experience

3 hours (approximately)
Flexible schedule
Learn at your own pace

See how employees at top companies are mastering in-demand skills

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This course is part of the Cost Accounting Specialization
When you enroll in this course, you'll also be enrolled in this Specialization.
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There are 3 modules in this course

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.

What's included

3 videos4 readings4 quizzes

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.

What's included

4 videos4 quizzes1 discussion prompt1 plugin

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.

What's included

2 videos2 readings3 quizzes

Instructors

Instructor ratings
4.3 (15 ratings)
Gunther Friedl
Technical University of Munich (TUM)
4 Courses17,032 learners

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Recommended if you're interested in Finance

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4.6

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