Course Outline
Introduction to Cost Centers and Costing Fundamentals
- The purpose and structure of cost centers.
- Cost classification: fixed, variable, direct, and indirect.
- Mapping organizational units to cost centers.
Creating and Configuring Cost Centers
- Defining new cost centers and cost center groups.
- Assigning responsibilities, hierarchies, and control parameters.
- Maintaining master data and managing the lifecycle.
Cost Driver Identification and Allocation Routines
- Selecting and defining appropriate cost drivers.
- Allocation methods and frequency.
- Maintaining allocation rules and schedules.
Machine Hours and Labor Hours Integration
- Defining machine hours and operator labor hours.
- Capturing runtime metrics and operational logs.
- Integrating hours with cost centers for accurate cost absorption.
Bills of Materials (BOM) and Component Costing
- BOM structures and cost rollup principles.
- Handling multi-level BOMs and phantom assemblies.
- Component substitution and cost impact analysis.
Standard Costing, Variances, and Reconciliation
- Establishing standard costs and managing updates.
- Recording and analysing material and overhead variances.
- Period-end reconciliation and corrective actions.
Activity-Based Costing and Advanced Allocation Techniques
- Designing activity pools and cost assignments.
- Calculating activity rates and unit costs.
- Comparing ABC with traditional allocation approaches.
Absorption Costing and Cost Rollups
- Absorbing machine hours, labor hours, and overheads into product cost.
- 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.
- Regulatory and reporting considerations.
Performance, Optimization, and Cost Reduction Strategies
- Identifying high-impact cost drivers and hotspots.
- Process improvements and cost-to-serve analysis.
- Continuous monitoring and KPI design for cost centers.
Summary and 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.
- Product costing and supply chain specialists.
- ERP functional consultants 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 (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.
