Course Outline
Introduction to Cost Centers and Foundational Costing Concepts
- The purpose and structural framework 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 organizing cost center groups.
- Assigning responsibilities, hierarchies, and control parameters.
- Managing master data and lifecycle operations.
Cost Driver Identification and Allocation Routines
- Selecting and defining appropriate cost drivers.
- Determining allocation methods and frequency.
- Maintaining allocation rules and schedules.
Integration of Machine Hours and Labor Hours
- Defining machine hours and operator labor hours.
- Capturing runtime metrics and operational logs.
- Integrating hours with cost centers for precise cost absorption.
Bills of Materials (BOM) and Component Costing
- BOM structures and the principles of cost rollup.
- Handling multi-level BOMs and phantom assemblies.
- Analyzing component substitution and its cost impact.
Standard Costing, Variances and Reconciliation
- Establishing standard costs and managing updates.
- Recording and analyzing material and overhead variances.
- Executing period-end reconciliation and corrective actions.
Activity-Based Costing and Advanced Allocation Techniques
- Designing activity pools and assigning costs.
- Calculating activity rates and unit costs.
- Comparing ABC methods with traditional allocation approaches.
Absorption Costing and Cost Rollups
- Absorbing machine hours, labor hours, and overheads into product costs.
- Performing 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.
- Driving process improvements and cost-to-serve analysis.
- Designing continuous monitoring and KPIs for cost centers.
Summary and Next Steps
Requirements
- A solid understanding of managerial accounting principles.
- Familiarity with 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 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
