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Management Accounting Course

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Activity Based Costing (Virtual Classroom)

Course Details

Code:0076v
Select a start date for more details
Virtual Classroom
28 Jun - 29 Jun 2021
Level
Intermediate
CPD
8 Hours
Time
13:00-17:00
Location
Virtual Classroom
Cost
£950.00
Subject to Sales tax for all course purchases made in the UK, Canada and South Africa. (Read more)
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Introduction

This virtual workshop is part of our series on Business and Accounting Strategies in Uncertain Times. The series is made up of six events which are designed to work as stand-alone events, or as a full series.

You can learn more about our virtual, online courses and how they work on our course FAQ page. Or view our Virtual Classroom schedule to see what else is being delivered live in our online classrooms. If you don’t see the management accounting training topic, you are looking for, or if you would like an online classroom in another time zone, please tell us.

This online Management Accounting training is being delivered live in 2 individual sessions which run on consecutive days. The sessions will run each day from 13:00 – 17:00 London (UK).

Do you know who your most profitable customers are? Do you know the true cost of each of your products or services? Does your pricing reflect the full cost of serving the customer? What drives cost and value for money in your organisation?

This information is vital, especially as you build your strategy, but rarely available. The problem is that the information from your accounting systems is designed for external reporting and to meet tax requirements. There’s a big difference between accounting information and the true economics of the business. Activity based costing fills this gap.

In this 2-session course we will give you tools and techniques to:

  • Determine the true profitability of each of your customers
  • Segment customers and markets
  • Understand the true costs of your products and services
  • Make better pricing decisions
  • Eliminate costly and non-value adding activities
  • Effectively challenge your operating costs

The course introduces the concepts of activity-based costing for the small and medium business and then develops these in a practical workshop teaching how to build and use costing models.

Activity based costing is often associated with manufacturing businesses but is applicable to any organisation that has products or services. The course looks at application of activity based (or output) costing in service industries and in the public sector.

During this workshop, you will:

  • Use the cause-and-effect “lens” of activity-based costing to design a cost model that accurately reflects the fundamental economics that underlie your organisation
  • Accumulate a “toolbox” of costing concepts, tools and techniques that will help to incorporate seemingly complex issues into your costing model with a minimum of difficulty
  • Create templates that will use your model’s costing rates to accurately assign costs to your company’s jobs, products, services, customers, markets, etc.
  • Practice using your model to support a variety of management decisions
  • Learn techniques for gathering your company’s detailed information for populating your model and templates

Learning Objectives

  • Learn how to design a predictive cost model of your small or mid-sized business that reflects economic reality
  • Develop an Excel-based predictive model that can be populated with your company’s data to become a powerful decision support tool
  • Develop Excel-based job/product and customer costing templates to accurate measure the costs of your company’s jobs/products and customers

Who Should Attend

  • An established CFO - who finds themselves working closely with the CEO to adapt the business model for the new normal
  • The first time CFO - who needs to grow into the strategic business partner role
  • The future CFO - already no 2 in finance but running the back office and needs to change focus to be ready for the top job

Topics

  • Understanding product costs, customer profitability and customer value
    • The importance of models in decision making
    • The causality principle – Understanding what drives cost
    • Designing cost models that match economic reality
    • Designing cost models that both assign and predict costs
  • Data accuracy and relevance
    • Precision vs. accuracy
    • Financial costs vs. economic costs
  • How to use ABC for planning and decision support
    • Pricing and quoting
    • Decisions covering multiple periods
    • Make / buy decisions
    • Outsourcing decisions
    • On shoring / off shoring decisions
    • Capital expenditure decisions
    • Supply chain management
    • Product mix management
    • Manpower planning
  • Designing a cost model that fits your firm
    • Material support activities
    • Value-adding and other direct activities
    • Event and transaction activities
    • Customer/market support activities
    • Product/service line support activities
    • General and administrative activities

Teaching Method

  • Group live instruction and illustrative examples
  • Practical workshop exercises using the tools and techniques we teach to build targets and reduce cost in a fictitious business that faces many of the issues you will encounter in the real world.
  • All participants receive comprehensive electronic course notes, including presentation slides, handouts and other course materials
  • This virtual training is being delivered live and online over 2 individual sessions, each of 4 hours’ duration. They will run each day from 13:00 – 17:00 London (UK)

Instructors

The instructor for this course will be drawn from one of our core faculty of subject matter experts. Further details will be published at the earliest opportunity.

Venue

Our seminars take place in 4 star professional conference facilities, generally in city-centre hotels like the Marriott, Sheraton or Hilton brands. Detailed Joining Instructions are sent to all registered delegates by email approximately one month before the event. The Joining Instructions will confirm exact venue details and nearby (or onsite) hotel recommendations with bedroom rates where available. Coffee and lunch will be provided.

CPE/CPD Accreditation

IASeminars is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

 

Field of study: Accounting

Prerequisites

A solid grounding in financial management will be useful on this course.