Course Outline
Introduction to Cost Centers and Foundational Costing
- The role and architecture of cost centers
- Categorizing costs: fixed, variable, direct, and indirect
- Aligning organizational units with specific cost centers
Creation and Configuration of Cost Centers
- Setting up new cost centers and grouping them effectively
- Designating responsibilities, hierarchies, and control settings
- Managing master data and lifecycle stages
Identifying Cost Drivers and Allocation Protocols
- Choosing and defining appropriate cost drivers
- Determining allocation methods and their frequency
- Maintaining allocation rules and scheduling
Integrating Machine and Labor Hours
- Defining machine runtime and operator labor time
- Recording operational metrics and logs
- Aligning hours with cost centers for precise cost absorption
Bills of Materials (BOM) and Component Costing
- BOM architecture and principles of cost rollup
- Managing multi-level BOMs and phantom assemblies
- Analyzing the cost impact of component substitutions
Standard Costing, Variances, and Reconciliation
- Setting standard costs and managing updates
- Tracking and analyzing material and overhead variances
- End-of-period reconciliation and implementing corrective measures
Activity-Based Costing and Sophisticated Allocation Methods
- Creating activity pools and assigning costs
- Determining activity rates and unit costs
- Evaluating ABC against conventional allocation strategies
Absorption Costing and Cost Rollups
- Incorporating machine hours, labor hours, and overheads into product costs
- End-to-end costing for finished goods and services
- Running cost simulations and what-if analyses
Controls, Auditability, and Compliance
- Enacting access controls and change management governance
- Ensuring audit trails for cost adjustments and revaluations
- Addressing regulatory and reporting requirements
Performance, Optimization, and Cost Reduction Strategies
- Pinpointing significant cost drivers and hotspots
- Enhancing processes and analyzing cost-to-serve
- Implementing continuous monitoring and designing KPIs for cost centers
Conclusion and Future Directions
Requirements
- A solid grasp of managerial accounting concepts
- Knowledge of bills of materials and production workflows
- Operational experience with ERP or financial systems
Target Audience
- Cost accountants and financial analysts
- Specialists in product costing and supply chain management
- ERP functional consultants and system integrators
Testimonials (4)
How to manage business financials
surprise mtileni - Hatima Holdings (Pty) ltd
Course - Learning Xero
Good communication, open for discussion, kept it interesting and engaging
Ahmet Keyman - Keytrade AG
Course - Management Accounting and Finance for Non-Finance Professionals
Experience of the trainer and his way of conveying the content
Roggli Marc - Bechtle Schweiz AG
Course - FinOps
The trainer did not leave a single minute unexploited! He was up a storm throughout every lesson and provided much material for whatever he dealt with.
