Activity Based Costing

Activity Based Costing (ABC) helps organizations to get breakup of organizational costs and to allocate these costs appropriately to different business functions, and activities. This enables public and private organizations to identify with accuracy where the different components of costs are being deployed which resultantly helps them develop strategies and plans to optimize costs, improve product and service prices, and identify high cost products, services, suppliers and customers.

This course is aimed at providing practical tools and techniques to help participants manage their costs and successfully implement activity based costing in their organizations to help improve the quality of their decision making with respect to cost.

All managers and departmental heads who want to identify how activity based costing can be used, professionals involved in manging accounts, personnels that are involved in providing the products and services or those individuals that are providing assistance to the systems or the processes.

IKL Certificate

Basics of Activity Based Costing (ABC)

• What is Activity Based Costing?
• How Activity Based Costing is being used in the industry?
• How can Activity Based Costing address the specific needs and benefits of different industries?
• Which strategic and operational decisions benefit from implementation of Activity Based Costing?
• Role and responsibilities of finance, accounts and other department managers in implementation of Activity Based Costing

Measurement and Development of Cost Models using ABC

• Identify costs and activities you need to structure
• Determine which products, services, suppliers and customers to target
• Develop procedures for calculating and estimating costs
• Structuring Activity Based Costing to exhibit the effect of varied levels of activity
• Pros and cons of inclusion of indirect and back office costs
• How to assign costs to non-value added activities
• Identify cost variations and the costs allocations
• Quantify cost drivers of the critical costs
• Forecast cost projections

Cost Management

• Categorization of costs with reference to activities
• How to avoid cost subsidy on discrete activities?
• Carry out value chain analysis of all activities using Activity Based Costing
• How to control costs using cost management tools and techniques?
• Decision on the pros and cons of make or buy
• Carry out profitability analysis
• Develop cost budgetusing Activity Based Costing

Optimizing use of ABC

• Streamlining Activity Based Costing to get optimal benefit for the organization
• How to effectively use cost information obtained to improve decision making, including benchmarking and business intelligence to boost business performance of the organization
• Basing your pricing strategy on Activity Based Costing
• Fully costing public sector user pays services
• Making Activity Based Costing an integral part of the organization’s financial management information system (FMIS)
• Carrying out cost reviews
• Using activity based costing reports effectively

ABC Implementation

• Different Activity Based Costing tools and techniques and how they impact organizations
• How to effectively integrate Activity Based Costing into your standard costing and accounting systems?

Creating Synergy between ABC and Other Costing Tools and Techniques

• Use of Activity Based Costing for job and process costing
• Incorporating cost accounting techniques
• Linking activity management and continuous improvement to Activity Based Costing
• Comparison of various costing software

Institute of Knowledge and Leadership (IKL) has emerged on the global map of learning, talent development and executive education as a highly advanced and qualified training platform. IKL is based in Dubai and serves prominent clients from across the MENASA region.

The distinctive factor about IKL is its significant, highly qualified and skilled pool of global trainers, primarily equipped with state of the art training methods and techniques coupled with the passion to share knowledge and to co - create a value proposition with organizations and their teams. IKL has trainers across the globe from 25 nationalities, over 200+ knowledge areas, and with a cumulative training, knowledge creation, sharing, and dissemination experience for over 1000+ years with over 2 million participants globally.