Course Outline
Foundations of Cost Centers and Costing Concepts
- The role and architecture of cost centers
- Categorizing costs: fixed, variable, direct, and indirect
- Aligning organizational units with cost centers
Establishing and Configuring Cost Centers
- Setting up new cost centers and their respective groups
- Allocating responsibilities, defining hierarchies, and setting control parameters
- Managing master data and handling lifecycle stages
Identifying Cost Drivers and Allocation Procedures
- Choosing and defining appropriate cost drivers
- Selecting allocation methods and determining frequency
- Maintaining allocation rules and schedules
Integrating Machine and Labor Hours
- Specifying machine hours and operator labor time
- Recording runtime metrics and operational logs
- Linking hours to cost centers to ensure precise cost absorption
Bills of Materials (BOM) and Component Pricing
- BOM structures and principles of cost rollups
- Managing multi-level BOMs and phantom assemblies
- Evaluating component substitutions and their cost implications
Standard Costing, Variances, and Reconciliation
- Setting and updating standard costs
- Tracking and examining material and overhead variances
- Performing period-end reconciliation and implementing corrective measures
Activity-Based Costing and Sophisticated Allocation Methods
- Structuring activity pools and assigning costs
- Deriving activity rates and unit costs
- Contrasting ABC with conventional allocation techniques
Absorption Costing and Cost Aggregation
- Incorporating machine hours, labor hours, and overheads into product costs
- Executing end-to-end costing for finished goods and services
- Running cost scenario simulations and what-if analyses
Controls, Audit Trails, and Compliance
- Enforcing access controls and change management governance
- Maintaining audit trails for cost adjustments and revaluations
- Addressing regulatory and reporting requirements
Performance, Optimization, and Cost-Saving Strategies
- Detecting significant cost drivers and high-impact areas
- Enhancing processes and conducting cost-to-serve evaluations
- Implementing continuous monitoring and designing KPIs for cost centers
Wrap-Up 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.
