Course plan

Day 1: Introduction

• The main types of financial statements;
• Cost components;
• Key performance measures;
• The principle of the accounting record in the contexts of cost and activity-based (ABC) costing.

Features of cost components

• Overhead manufacturing costs and their effect on cost according to the 5 different allocation methods;
• Raw materials: quantities and unit prices;
• Direct labour: quantities and unit prices;
• The various data collection systems.

Day 2: The various costs

• Job order cost system;
• Batch cost system;
• Process cost system;
• Cost according to standard cost system;
• Cost system according to activity-based or process-based accounting method.

Day 3: Performance measures

• Efficiency measure;
• Productivity measure;
• Quality measure;
• Effectiveness measure;
• Measure by resource, by department, by cost centre and for the whole company.

Activity-based accounting

• Principles of VAP and GVA;
• Definition of accountable activities;
• Concepts of cost drivers;
• Concepts of work centres or cost centres;
• Examples of business processes;
• Comparison of traditional cost and cost according to activities-based costing;
• Effect on decisions.

Objectives

• Take part in the design and implementation of a cost system that suits the company;
• Define and use performance measures that are tailored to the company context and that of the affected business unit (whether the company itself, a department, a division, a cost centre or a management area);
• Assess cost performance in relation to the company’s strategic objectives;
• Analyze cost components, identify opportunities to reduce costs and assess their potential effects.

Duration

3 days.