Course Outline
Introduction to Cost Centers and Costing Basics
- The role and composition of cost centers
- Cost categorization: fixed, variable, direct, and indirect
- Linking organizational units to cost centers
Creating and Setting Up Cost Centers
- Defining new cost centers and grouping structures
- Assigning duties, hierarchies, and control settings
- Managing master data and the cost center lifecycle
Identifying Cost Drivers and Allocation Procedures
- Choosing and defining cost drivers
- Allocation techniques and their frequency
- Managing allocation rules and schedules
Integrating Machine Hours and Labor Hours
- Specifying machine hours and operator labor hours
- Recording runtime metrics and operational logs
- Connecting hours to cost centers for precise cost absorption
Bills of Materials (BOM) and Component Costing
- BOM structures and the principles of cost rollup
- Managing multi-level BOMs and phantom assemblies
- Component substitution and analyzing cost impacts
Standard Costing, Variances, and Reconciliation
- Setting standard costs and managing updates
- Tracking and analyzing material and overhead variances
- Period-end reconciliation and implementing corrective measures
Activity-Based Costing and Advanced Allocation Methods
- Creating activity pools and assigning costs
- Computing activity rates and unit costs
- Evaluating ABC against traditional allocation methods
Absorption Costing and Cost Rollups
- Incorporating machine hours, labor hours, and overheads into product costs
- Comprehensive costing for finished goods and services
- Running cost scenario simulations and what-if analyses
Controls, Auditability, and Compliance
- Setting up access controls and change management
- Maintaining audit trails for cost adjustments and revaluations
- Considerations for regulatory and reporting requirements
Performance, Optimization, and Cost Reduction Strategies
- Pinpointing high-impact cost drivers and problem areas
- Enhancing processes and analyzing cost-to-serve
- Continuous monitoring and designing KPIs for cost centers
Summary and Future Steps
Requirements
- A solid grasp of managerial accounting principles
- Knowledge of bills of materials and production processes
- Operational experience with ERP or financial systems
Audience
- Cost accountants and financial analysts
- Specialists in product costing and supply chain
- ERP functional consultants and system integrators
Testimonials (3)
How to manage business financials
surprise mtileni - Hatima Holdings (Pty) ltd
Course - Learning Xero
Flexibility in the course delivery and the interactive approach. The trainer was open to questions, clarified doubts clearly and also considered participants suggestions during the sessions. The training was well structured and informative.
Soundarya Mohan - Mizuho Bank Europe N.V.
Course - Financial Analysis in Excel
Good communication, open for discussion, kept it interesting and engaging
