Global Learning for Operational Leaders
Introduction
Course overview
Traditional costing systems often spread overheads using simple measures such as labour hours or sales value. In organisations with diverse products, services, customers and channels, this can seriously distort reported costs, making some offerings appear profitable when they lose money and hiding the real causes of overhead growth.
This Activity-Based Costing and Profitability Analysis training course shows participants how to trace resources to activities and activities to products, services, customers and channels based on what actually drives cost. Participants learn to design practical activity-based models, including time-driven approaches that are easier to maintain.
The course then focuses on using the results: analysing profitability, informing pricing and product mix decisions, redesigning processes, managing cost-to-serve and supporting strategic decisions with reliable cost information.