Course Objectives.

• Enhance cost awareness
• Identify the meaning of cost, loss, and waste.
• Distinguish between expense and expenditure, product and period costs, manufacturing and non-manufacturing, direct and indirect costs and fixed and variable costs.
• Understand cost behavior and describe specific cost analysis techniques
• Select the costing measurement system that works
• Understand how to measure cost of quality
• Describe specific performance measurement techniques
• Select the systems of performance measurement that works
• Broadening the management accounting knowledge
• Enhance the ability to link cost to strategy to performance measurement
• Use Information for Performance Measurement and Control
• Understand how to use Balanced Scorecard as a strategic tool for Performance Measurement and Control
• Understand how to transfer from cost to strategy to performance measurement
• Apply Financial Performance tools in Oil and Gas Companies
• Understand how to Improve Performance

 Course Outline.

• Cost Terminology

• Key Cost Concepts: Cost, Loss, and Waste.
• Expense and Expenditure
• Product and Period Costs (Inventoriable and Non-Inventoriable)
• Manufacturing and Non-manufacturing
• Direct and Indirect
• Fixed and Variable
• Cost Behavior and Cost-Volume-Profit / Break-Even analysis

• Cost of Quality
• Information for Performance Measurement and Control

• Effort is not the same thing as Performance
• What is Performance?
• What Factors Influence Performance
• Why Information and Why Performance Measurement?
• Information as a Competitive Advantage
• What should be measured and how should it be used?
• Managerial Responsibilities
• How Do Firms Choose What To Measure?
• Technical Feasibility of Measuring
• Cost of Measurement
• Desired Level of Innovation and Control
• Should Purpose Affect Measurement?

• Balanced Scorecard as a Strategic tool for Performance Measurement and Control

• Financial Perspective
• Financial Perspective
• Customer Perspective
• Internal Business Process Perspective
• Learning & Growth Perspective

• Financial Performance tools in Oil and Gas Companies

• Reserve Replacement Ratio
• Reserve Life Ratio
• Net Wells to Gross Wells Ratio
• Average Reserves Per Well Ratio
• Average Daily Production Per Well
• Finding Costs Per BOE
• Lifting Costs Per BOE
• DD&A Per BOE
• Value of Proved Reserve Additions Per BOE

• Value Added Ratio
• Performance Improvement
• • How is PI Different from other Quality Approaches?

  • Performance Improvement Framework

  • PI Users Perceptions

  • How We Benefit from a Performance Improvement Process