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.