Course Outline
Introduction to Cost Centers and Costing Fundamentals
- The purpose and structure of cost centers.
- Cost classification: fixed, variable, direct, and indirect.
- Mapping organizational units to specific cost centers.
Creating and Configuring Cost Centers
- Defining new cost centers and cost center groups.
- Assigning responsibilities, hierarchies, and control parameters.
- Maintaining master data and managing the lifecycle.
Cost Driver Identification and Allocation Routines
- Selecting and defining appropriate cost drivers.
- Exploring allocation methods and their frequency.
- Maintaining allocation rules and schedules.
Machine Hours and Labor Hours Integration
- Defining machine hours and operator labor hours.
- Capturing runtime metrics and operational logs.
- Integrating hours with cost centers for accurate cost absorption.
Bills of Materials (BOM) and Component Costing
- BOM structures and cost rollup principles.
- Handling multi-level BOMs and phantom assemblies.
- Component substitution and analyzing cost impacts.
Standard Costing, Variances, and Reconciliation
- Establishing standard costs and implementing updates.
- Recording and analyzing material and overhead variances.
- Period-end reconciliation and taking corrective actions.
Activity-Based Costing and Advanced Allocation Techniques
- Designing activity pools and cost assignments.
- Calculating activity rates and unit costs.
- Comparing ABC with traditional allocation approaches.
Absorption Costing and Cost Rollups
- Absorbing machine hours, labor hours, and overheads into product costs.
- End-to-end costing for finished goods and services.
- Simulating cost scenarios and conducting what-if analyses.
Controls, Auditability, and Compliance
- Implementing access controls and change governance.
- Maintaining audit trails for cost adjustments and revaluations.
- Addressing regulatory and reporting considerations.
Performance, Optimization, and Cost Reduction Strategies
- Identifying high-impact cost drivers and hotspots.
- Improving processes and analyzing cost-to-serve.
- Continuous monitoring and designing KPIs for cost centers.
Summary and Next Steps
Requirements
- A solid grasp of managerial accounting principles.
- Familiarity with bills of materials (BOM) and production processes.
- Operational-level 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 (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
