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 (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.
