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 (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.
