Course Outline
Introduction to Cost Centers and Costing Fundamentals
- The purpose and structural design of cost centers
- Cost classification: distinguishing fixed, variable, direct, and indirect costs
- Aligning organizational units with cost centers
Creating and Configuring Cost Centers
- Setting up new cost centers and defining cost center groups
- Assigning responsibilities, hierarchies, and control parameters
- Managing master data and lifecycle controls
Cost Driver Identification and Allocation Routines
- Identifying and defining appropriate cost drivers
- Determining allocation methods and their frequency
- Maintaining allocation rules and scheduling routines
Machine Hours and Labor Hours Integration
- Defining machine hours and operator labor hours
- Capturing runtime metrics and operational logs
- Integrating hour data with cost centers for precise cost absorption
Bills of Materials (BOM) and Component Costing
- BOM structures and the principles of cost rollup
- Managing multi-level BOMs and phantom assemblies
- Analyzing component substitution and its impact on costs
Standard Costing, Variances and Reconciliation
- Setting standard costs and managing updates
- Tracking and analyzing material and overhead variances
- Conducting period-end reconciliations and implementing corrective actions
Activity-Based Costing and Advanced Allocation Techniques
- Designing activity pools and assigning costs
- Computing activity rates and unit costs
- Evaluating ABC against traditional allocation methods
Absorption Costing and Cost Rollups
- Absorbing machine hours, labor hours, and overheads into product costs
- Performing end-to-end costing for finished goods and services
- Running cost scenario simulations and what-if analyses
Controls, Auditability and Compliance
- Establishing access controls and change governance
- Maintaining audit trails for cost adjustments and revaluations
- Addressing regulatory and reporting requirements
Performance, Optimization and Cost Reduction Strategies
- Pinpointing high-impact cost drivers and areas of concern
- Improving processes and conducting cost-to-serve analyses
- Implementing continuous monitoring and KPI design for cost centers
Summary and Next Steps
Requirements
- A solid grasp of managerial accounting principles
- Knowledge of bills of materials and production processes
- Operational experience with ERP or financial systems
Target Audience
- Cost accountants and financial analysts
- Product costing and supply chain specialists
- 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
