Course Outline
Introduction to Cost Centers and Fundamentals of Costing
- The purpose and structural design of cost centers
- Cost classification: fixed, variable, direct, and indirect
- Mapping organizational units to specific cost centers
Establishing and Configuring Cost Centers
- Defining new cost centers and cost center groups
- Assigning responsibilities, hierarchies, and control parameters
- Maintaining master data and managing lifecycle operations
Identifying Cost Drivers and Allocation Procedures
- Selecting and defining appropriate cost drivers
- Determining allocation methods and frequencies
- Maintaining allocation rules and scheduling
Integrating Machine and Labour Hours
- Defining machine hours and operator labour hours
- Capturing runtime metrics and operational logs
- Integrating hours with cost centers for precise cost absorption
Bills of Materials (BOM) and Component Costing
- BOM structures and principles of cost rollup
- Managing multi-level BOMs and phantom assemblies
- Analising component substitution and its impact on costs
Standard Costing, Variances, and Reconciliation
- Establishing standard costs and managing updates
- Recording and analyzing material and overhead variances
- Conducting period-end reconciliation and implementing corrective actions
Activity-Based Costing and Advanced Allocation Methods
- Designing activity pools and assigning costs
- Calculating activity rates and unit costs
- Comparing Activity-Based Costing with traditional allocation approaches
Absorption Costing and Cost Aggregation
- Absorbing machine hours, labour hours, and overheads into product costs
- Performing end-to-end costing for finished goods and services
- Simulating cost scenarios and conducting 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 high-impact cost drivers and hotspots
- Implementing process improvements and cost-to-serve analysis
- Continuous monitoring and KPI design for cost centers
Conclusion and Recommended Next Steps
Requirements
- A solid understanding of managerial accounting principles
- Familiarity with bills of materials and production processes
- 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 (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
