Management Accounting and Cost Accounting in the Downstream International Petroleum-Oil and Gas-Industry

The course content of the management accounting and cost accounting in the downstream international petroleum-oil and gas-industry training course is as follows:

Part 1: Three Main Accounting Areas

• Management Accounting,
• Financial Accounting,
• Cost Accounting

Part 2: Accounting Concepts

• The Money Measurement Concept,
• The Entity Concept,
• The Going Concern Concept,
• The Dual Aspect Concept,
• The Accounting Period Concept,
• The Materiality (Proportionality) Concept,
• The Conservatism Concept,
• Consistency Concept,
• The Realization Concept,
• The Matching Concept,
• The Cost Concept.

Part 3: Management Accounting

• Strategy and Management Accounting,
• Management Accounting and Value,
• Illustration of Value Chain,
• Key Success Factors,
• Planning and Control Systems,
• A Five-step Decision Making Process in Planning and Control,
• Management Accounting Guidelines,
• A Typical Organizational Structure and the Management Accountant.

Part 4: Cost Terms and Purposes

• Basic Cost Terminology,
• Direct and Indirect Cost,
• Cost Examples in the Downstream Petroleum Industry,
• Factors Affecting Direct/Indirect Cost Classification,
• Cost Behaviour,
• Other Cost Concepts,
• A Cost Caveat,
• Multiple Classifications of Costs,
• Different Types of Firms,
• Types of Manufacturing Inventories,
• Types of Product Cost,
• Accounting vs. Cost,
• Cost Flows,
• Cost Flows Visualized,
• Multiple - Step Income Statement,
• Cost of Goods Manufactured,
• Other Cost Considerations,
• Different Definitions of Costs for Different Applications,
• The Common Features of Cost Accounting and Cost Management

Part 5: Cost-Volume-Profit Analysis

• A Five-Step Decision Making Process in Planning and Control Revisited,
• Foundational Assumptions in CVP,
• Basic Formulae,
• CVP: Contribution Margin,
• Cost-Volume-Profit Equation,
• Break Even Point,
• Break Even Point, Extended: Profit Planning,
• CVP: Graphically,
• Profit Planning: Illustrated,
• CVP and Income Taxes,
• Sensitivity Analysis,
• Margin of Safety,
• Operating Leverage,
• Effects of Sales - Mix on CVP,
• Alternative Income Statement Formats

Part 6: Job Costing

• Cost Terminology,
• Costing Systems,
• Costing Systems Illustrated,
• Costing Approaches,
• Seven-step Job Costing,
• Sample Job Cost Document,
• Sample Job Cost Source Documents,
• Job Costing Overview,
• Journal Entries,
• Flow of Costs Illustrated,
• Illustrated General Ledger in a Job Cost Environment,
• Accounting for Overhead,
• Three Methods for Adjusting Over/Under applied Overhead.

Part 7: Activity Based-Costing and Cost Management

• Broad Averaging,
• Over and Under costing,
• Cross-subsidization,
• Rationale for Selecting a More Refined Costing System,
• Cost Hierarchies,
• ABC vs. Simple Costing Schemes,
• Activity-Based Management

Part 8: Oil and Gas Accounting

• Oil and Gas Production and Sales,
• Some State and US Federal Oil and Gas Drilling Regulation,
• Maximum Efficiency Rate (MER),
• The Concept of Peak Oil (1),
• 4 Basic Types of Oil:
• Acquisition Costs,
• Exploration Costs,
• Development Costs,
• Production Costs.
• Historical Cost Accounting Methods,
• Historical Development of Accounting Methods and Current Status,
• Introduction to Successful Efforts Accounting,
• Charts Accounts for Successful Efforts Company.