Course Outline
Introduction to Cost Centers and Pricing Fundamentals
- The role and structure of cost centers
- Classifying costs: fixed, variable, direct, and indirect
- Mapping organizational units to specific cost centers
Creating and Configuring Cost Centers
- Defining new cost centers and groups
- Assigning responsibilities, hierarchies, and control settings
- Managing master data and lifecycle processes
Identifying Cost Drivers and Allocation Routines
- Selecting and defining cost drivers
- Methods and frequency of allocation
- Maintaining allocation rules and schedules
Integrating Machine and Labor Hours
- Defining machine hours and operator labor time
- Capturing runtime metrics and operational logs
- Linking hours to cost centers for accurate absorption
Bills of Materials (BOM) and Component Pricing
- BOM structures and principles of cost rollup
- Managing multi-level BOMs and phantom assemblies
- Analyzing the cost impact of component substitutions
Standard Pricing, Variances, and Reconciliation
- Establishing standard costs and updating them
- Recording and analyzing material and overhead variances
- Conducting period-end reconciliation and implementing 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 Rollups
- Absorbing machine hours, labor hours, and overheads into product costs
- Full-cycle 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 requirements and reporting obligations
Performance, Optimization, and Cost Reduction Strategies
- Identifying high-impact cost drivers and hotspots
- Process improvements and analysis of cost-to-serve metrics
- Continuous monitoring and designing KPIs for cost centers
Summary and Next Steps
Requirements
- A grasp of managerial accounting principles
- Knowledge of bills of materials and production workflows
- Operational experience with ERP or financial systems
Target Audience
- Cost accountants and financial analysts
- Specialists in product costing and supply chain management
- Functional consultants for ERP systems and system integrators
Custom Corporate Training
Training solutions designed exclusively for businesses.
- Customized Content: We adapt the syllabus and practical exercises to the real goals and needs of your project.
- Flexible Schedule: Dates and times adapted to your team's agenda.
- Format: Online (live), In-company (at your offices), or Hybrid.
Price per private group, online live training, starting from 3200 € + VAT*
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Testimonials (3)
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
Ahmet Keyman - Keytrade AG
Course - Management Accounting and Finance for Non-Finance Professionals
Experience of the trainer and his way of conveying the content
