Course Outline
Fundamentals of Cost Centers and Costing
- The role and architecture of cost centers
- Cost categorization: fixed, variable, direct, and indirect
- Aligning organizational units with cost centers
Setup and Configuration of Cost Centers
- Creating new cost centers and cost center groups
- Assigning responsibilities, hierarchies, and control parameters
- Managing master data and lifecycle processes
Identifying Cost Drivers and Allocation Procedures
- Choosing and defining appropriate cost drivers
- Determining allocation methods and frequency
- Managing allocation rules and schedules
Integrating Machine Hours and Labor Hours
- Defining machine hours and operator labor hours
- Recording runtime metrics and operational logs
- Linking hours to cost centers for precise cost absorption
Bills of Materials (BOM) and Component Pricing
- BOM structures and cost rollup principles
- Managing multi-level BOMs and phantom assemblies
- Analyzing component substitution and its cost impact
Standard Costing, Variances, and Reconciliation
- Setting standard costs and managing updates
- Tracking and analyzing material and overhead variances
- Performing period-end reconciliations and corrective actions
Activity-Based Costing and Sophisticated Allocation Methods
- Designing activity pools and assigning costs
- Computing activity rates and unit costs
- Benchmarking ABC against traditional allocation methods
Absorption Costing and Cost Rollups
- Integrating machine hours, labor hours, and overheads into product costs
- Comprehensive 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 requirements
Performance, Optimization, and Cost Reduction Strategies
- Identifying significant cost drivers and hotspots
- Enhancing processes and conducting cost-to-serve analysis
- Continuous monitoring and designing KPIs for cost centers
Conclusion and Future Directions
Requirements
- A solid grasp of managerial accounting principles
- 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.
