Course Outline
Foundations of Cost Centers and Costing
- The role and architecture of cost centers
- Classifying costs: fixed, variable, direct, and indirect
- Linking organizational units to specific cost centers
Establishment and Setup of Cost Centers
- Creating new cost centers and grouping them
- Allocating responsibilities, hierarchies, and control settings
- Managing master data and lifecycle stages
Identifying Cost Drivers and Allocation Procedures
- Choosing and defining specific cost drivers
- Methods and frequency of cost allocation
- Maintaining allocation rules and scheduling
Integration of Machine and Labor Hours
- Defining machine usage and operator labor time
- Recording runtime data and operational logs
- Connecting hours to cost centers for precise cost absorption
Bills of Materials (BOM) and Component Costs
- BOM structure and principles of cost rollup
- Managing multi-level BOMs and phantom assemblies
- Component substitution and assessing cost impacts
Standard Costing, Variances, and Reconciliation
- Setting standard costs and managing updates
- Tracking and analyzing material and overhead variances
- Performing period-end reconciliation and corrective measures
Activity-Based Costing and Advanced Allocation
- Structuring activity pools and cost assignments
- Determining activity rates and unit costs
- Contrasting ABC with traditional allocation methods
Absorption Costing and Cost Aggregation
- Incorporating machine, labor, and overhead into product costs
- Complete costing processes for finished goods and services
- Simulating scenarios and conducting what-if analyses
Controls, Auditability, and Compliance
- Establishing access controls and change governance
- Creating audit trails for cost adjustments and revaluations
- Considering regulatory and reporting requirements
Performance, Optimization, and Cost Reduction
- Pinpointing high-impact cost drivers and problem areas
- Improving processes and analyzing cost-to-serve
- Continuous monitoring and designing KPIs for cost centers
Recap and Future Steps
Requirements
- Knowledge of managerial accounting principles
- Proficiency with 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
- 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
