Course Outline
Overview of Cost Centers and Fundamental Costing Concepts
- The role and architecture of cost centers
- Categorization of costs: fixed, variable, direct, and indirect
- Aligning organizational units with cost centers
Establishment and Configuration of Cost Centers
- Creating new cost centers and grouping them logically
- Assigning responsibilities, hierarchical structures, and control settings
- Managing master data and the full lifecycle of cost centers
Identifying Cost Drivers and Defining Allocation Procedures
- Choosing and defining relevant cost drivers
- Determining allocation methods and their frequency
- Maintaining allocation rules and scheduling
Integration of Machine and Labor Hours
- Specifying machine hours and operator labor hours
- Collecting runtime data and operational logs
- Linking these hours to cost centers for precise cost absorption
Bills of Materials (BOM) and Component Costing
- BOM architecture and the principles of cost rollup
- Managing multi-level BOMs and phantom assemblies
- Assessing component substitutions and their impact on costs
Standard Costing, Variance Analysis, and Reconciliation
- Setting and updating standard costs
- Tracking and analyzing material and overhead variances
- Executing period-end reconciliation and implementing corrective measures
Activity-Based Costing and Sophisticated Allocation Methods
- Creating activity pools and assigning costs accordingly
- Computing activity rates and per-unit costs
- Evaluating ABC against traditional allocation models
Absorption Costing and Cost Aggregation
- Integrating machine hours, labor hours, and overheads into product costs
- Performing comprehensive costing for finished goods and services
- Simulating cost scenarios and conducting what-if analyses
Controls, Audit Trails, and Compliance
- Implementing access controls and governance for changes
- Maintaining audit trails for cost adjustments and revaluations
- Addressing regulatory and reporting requirements
Performance, Optimization, and Cost Reduction Strategies
- Detecting significant cost drivers and areas of high expenditure
- Improving processes and analyzing cost-to-serve
- Continuous monitoring and designing KPIs for cost centers
Conclusion and Recommended Next Steps
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.
