Course Outline
Fundamentals of Cost Centers and Costing
- The role and architecture of cost centers
- Cost categorization: fixed, variable, direct, and indirect
- Linking organizational units to cost centers
Establishing and Setting Up Cost Centers
- Creating new cost centers and cost center groups
- Allocating responsibilities, hierarchies, and control settings
- Managing master data and lifecycle controls
Identifying Cost Drivers and Allocation Procedures
- Choosing and defining cost drivers
- Allocation strategies and frequency
- Maintaining allocation rules and schedules
Integrating Machine and Labor Hours
- Defining machine hours and operator labor hours
- Recording runtime metrics and operational logs
- Connecting hours to cost centers for precise cost absorption
Bill of Materials (BOM) and Component Pricing
- BOM structures and cost rollup concepts
- Managing multi-level BOMs and phantom assemblies
- Component substitution and cost impact evaluation
Standard Costing, Variances, and Reconciliation
- Setting standard costs and updating them
- Documenting and reviewing material and overhead variances
- End-of-period reconciliation and corrective measures
Activity-Based Costing and Sophisticated Allocation Methods
- Structuring activity pools and cost assignments
- Determining activity rates and unit costs
- Evaluating ABC against conventional allocation methods
Absorption Costing and Cost Aggregation
- Incorporating machine hours, labor hours, and overheads into product costs
- Comprehensive costing for finished goods and services
- Running cost simulations and what-if analyses
Controls, Auditability, and Compliance
- Enforcing access controls and change management
- Maintaining audit trails for cost adjustments and revaluations
- Regulatory and reporting requirements
Performance, Optimization, and Cost Reduction Tactics
- Spotting significant cost drivers and problem areas
- Process enhancements and cost-to-serve analysis
- Ongoing monitoring and KPI design for cost centers
Wrap-up and Subsequent Steps
Requirements
- Knowledge of managerial accounting concepts
- Acquaintance with bills of materials and production workflows
- Operational-level experience with ERP or financial systems
Target Audience
- Cost accountants and financial analysts
- Product costing and supply chain experts
- 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.
