Course Outline
Introduction to Cost Centers and Basic Costing Principles
- The role and architecture of cost centers
- Cost categorization: fixed, variable, direct, and indirect costs
- Aligning organizational units with specific cost centers
Creation and Configuration of Cost Centers
- Defining new cost centers and their associated groups
- Assigning responsibilities, establishing hierarchies, and setting control parameters
- Managing master data and handling the full lifecycle
Identifying Cost Drivers and Allocation Routines
- Selecting and defining relevant cost drivers
- Allocation methods and their frequency
- Maintaining allocation rules and scheduling tasks
Integrating Machine and Labor Hours
- Defining machine hours and operator labor hours
- Capturing runtime metrics and operational logs
- Linking hours to cost centers for precise cost absorption
Bills of Materials (BOM) and Component Costing
- BOM structure and the principles of cost rollup
- Managing multi-level BOMs and phantom assemblies
- Component substitution and analyzing the impact on costs
Standard Costing, Variances, and Reconciliation
- Setting standard costs and managing updates
- Tracking and analyzing material and overhead variances
- Performing period-end reconciliation and taking corrective actions
Activity-Based Costing and Advanced Allocation Techniques
- Designing activity pools and assigning costs
- Calculating activity rates and unit costs
- Comparing ABC with traditional allocation methods
Absorption Costing and Cost Aggregation
- Incorporating machine hours, labor hours, and overheads into product costs
- End-to-end costing for finished goods and services
- Running cost simulations and 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 areas for improvement
- Process enhancements and cost-to-serve analysis
- Ongoing monitoring and designing KPIs for cost centers
Summary and Recommended Next Steps
Requirements
- A solid grasp of managerial accounting concepts
- Knowledge of bills of materials and production workflows
- Operational experience with ERP or financial management systems
Target 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
