Course Objectives
Certificate in Cost Analysis, Control and Optimization - Virtual Learning
Course Objectives
By the end of the course, participants will be able to:
Discover the importance of analyzing and managing costs
Develop important tools for planning and decision making
Explain Activity-Based Costing (ABC) and Activity-Based Management (ABM)
Estimate costs and allocate them properly
Evaluate and manage performance through strategic cost management
Target Audience
Financial managers or directors, accountants, financial assistants, budget accountants, analysts, budget and planning managers and coordinators, operations managers, facilities managers and professionals interested in cost management.
Target Competencies
Distinguishing relevant costs
Analyzing costs
Allocating costs
Calculating product costs using different methods
Assessing value adding costs
Choosing between cost alternatives
Advising management to buy or manufacture
Evaluating performance
Course Outline
Strategic need for analyzing and managing costsDefinition of cost managementDimensions of cost managementProduct costing systems: concepts and design issuesCost behavior, types and hierarchyCost accumulation job shopBatch production operationsVariable versus absorption costing
Cost management decisionsDecision making processIdentifying relevant costsEvaluating alternativesOutsourcing decisions : make or buyAdd or drop product or business lineReplacing equipmentSpecial order pricing decisions
Activity based managementABC systemsAnalyzing value added versus non value added activitiesActivity-based managementManaging customer profitabilityManaging quality and time to create value
Cost estimation and transfer pricingCost estimation techniquesIdentifying and choosing a cost driverSimple regression analysisMultiple regression analysisHigh-low methodApplications in Microsoft ExcelAllocating costs of support departmentsDirect methodStep methodReciprocal methodInter-group transfer pricing issues
Evaluating and managing performanceCost, volume, profit analysisBreakeven pointBreakeven point for multiple productsTarget incomeOperating leverageMargin of safetyManaging scarce resourcesFlexible budgetActivity-based budgetingStrategy, balanced scorecards and performance measurement