Activity Based Costing

How to document resources, consumption and costs for a business process

Course contents:

Course benefits

Who should attend

Prerequisites

What you will learn

What you will cover

How you will learn

Duration and availability

Course of the month

Course directory

Public schedule and prices

Terms of business

Course benefits:

Activity Based Costing is a key component in any programme of business change and development. Activity Based Costing (ABC) takes business analysts into the realms of costs and the value generated by the processes that constitute the business model. The course examines the different levels of process cost maturity found in business, and the gap that exists between the classic accounting based models and those required for optimising processes, developing products and services and leveraging the resources employed.

Who should attend:

This course is for anyone who needs to be able to determine the cost of activity in the business or organisation. It is suitable for business analysts and anyone leading a project to introduce change. The course is not suitable for those with strong accounting knowledge and experience.

Prerequisites:

No knowledge of accounting or financial modelling is required.

What you will learn:

On successful completion of the course, attendees will be able to:

• Describe business processes
• Identify the resources used by a process and their rates of consumption
• Distinguish types of cost
• Apply Activity Based Costing

What you will cover:

• Understanding Business Processes - What business processes are; how to describe a business process; distinguishing efficiency and effectiveness; measuring defects, cycle time, throughput, waste and yield
• Resource Usage and Consumption - The role of the 'processor' in the consumption of resources; units of measure, rate of consumption and typical initiators for the processes concerned
• Costing Systems - types of cost - fixed, variable and overhead; accounting based, cost / profit centre based, and activity based systems; activity based costing and activity based management
• Activity Based Costing - How to determine the cost of a business process; cost drivers; the profit and benefit generated by the process; determining the cost of sustaining customer and product revenues; unit, batch, and channel sustaining expenditure

How you will learn:

Discussions and lecture sessions are supported with a selection of useful forms for describing processes and the resources consumed, and exercises to calculate the costs for different types of business process. Attendees take away a comprehensive and easy-to-follow manual and workbook.

Duration and availability:

One day non-residential. In-house only.

 Top