The ABCs of Cost Accounting for Improved Performance (171068-12)
Description
How many American businesses truly know their costs and understand the
cost structure of their business model* Too many continue to agonize
over their inability to calculate and understand their true cost of
operations. It is virtually impossible to improve cost relationships
when actual costs remain a mystery. In today’s intensely competitive
world, traditional cost accounting systems simply won’t do the job.
Learning Objectives
To understand the underlying logic of Activity-Based Costing (ABC), and
why traditional costing methods don't work today.
Using ABC to focus on
profitability and quality.
To understand the key elements of Strategic
Cost Management:
Value Chain Concept
Strategic Positioning Concept
Cost Driver Concept
To employ the Survival Triplet to improve
profitability:
Cost/Price
Functionality
Quality
To learn how Target
Costing focuses on cost reduction through changes in the product and/or
service design.
Major Topics
Activity-Based Costing - a substantially more accurate method of
assigning costs to products, services, customers, and markets.
Strategic Cost Management - an advanced understanding of an
organization's cost structure to gain a strategic competitive advantage.
Using the Survival Triplet to improve profits.
Target Costing - a
structured approach to determining the cost levels necessary for
providing the desired profitability.
Operational/Non-Financial
Performance Measures -leading indicators are the drivers of future
financial performance.
Profitability through Productivity -
illustrations of many uncomplicated and easy-to-use cost accounting
principles which can be implemented immediately.
