Course Outline
Introduction to Cost Centers and Costing Fundamentals
- 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 lifecycle management.
Cost Driver Identification and Allocation Routines
- Selecting and defining cost drivers.
- Allocation methods and frequency.
- Maintaining allocation rules and schedules.
Integration of Machine Hours and Labor Hours
- 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 updates.
- Recording and analyzing 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 what-if analyses.
Controls, Auditability, and Compliance
- Implementing access controls and change governance.
- 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.
- Practical experience with ERP or financial systems at an operational level.
Target Audience
- Cost accountants and financial analysts.
- Specialists in product costing and supply chain.
- ERP functional consultants and system integrators.
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
