Your business
processes deliver output and value to your customers but how much do
they cost your organisation? How much more does it cost when a
customer has particularly demanding requirements or when a
product/service adds complexity? Indeed, who are your profitable
customers and what can you do about the unprofitable ones?
Similarly, which are your profitable products and services and which
are unprofitable and why? Activity Based Costing (ABC) and Activity
Based Management (ABM) helps organisations answer
these questions and ultimately establish a different approach
to managing customers, products, services and resources. |
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| Objectives |
At the
end of this
3 day course delegates
will:
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Understand
the key principles and techniques of Activity Based Costing
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Be
able to develop an activity dictionary and determine the
activity resource cost drivers for their organisation.
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Be
able to link activity cost drivers to their organisation’s
products, services and customers.
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Be
able to use ABC to measure, analyse and plan capacity.
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Understand
how operational ABM can be used to increase efficiencies,
lower costs and enhance asset utilisation — do
things right.
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Understand
how strategic ABM can be used to increase profitability by
shifting the demand mix away from unprofitable activities — doing the
right things
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| Course
Content |
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Introduction
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Problems with standard
costing
systems
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Kaizan costing and
pseudo-profit centres
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Defining an Activity
Dictionary
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Defining Resource Cost
Drivers
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Establishing an ABC
hierarchy of activities
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Coding activity
attributes
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Linking activity costs
to products, services and
customers
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ABC accuracy and cost
trade-off
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Capacity analysis and
planning
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ABM in context |
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Operational ABM
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Identify and
prioritise improvement opportunities
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Justifying
improvements and tracking the benefits
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Ongoing
improvement
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Strategic ABM
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Product mix and
pricing
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Customer
relationships
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Supplier selection
and management
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Product design and
development
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ABM in the
“future”?
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Integration with
financial systems
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Budgeting and
transfer pricing
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| Coaching |
To help delegates apply their new knowledge and
skills to developing their ABC model and apply ABM for their
organisation a coaching programme for individuals or teams can be
established, for details click coaching. |
| Who should attend? |
The course is for executives, managers and
senior staff who want to understand how ABC and ABM can be used to
improve the performance of their organisation, you do not need to be
an accountant to get value from this course. The course is suitable
for both the manufacturing and service sectors. The course is for a
maximum of 15 people. Customised courses and workshops are also
available as in-company
programmes. |
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