Training Course on Advanced Cost Accounting & Activity-Based Costing

Introduction

Advanced cost accounting techniques, including Activity-Based Costing (ABC), provide organizations with precise insights into cost behavior and profitability, enabling better pricing, budgeting, and strategic decisions. This training course equips finance professionals with methods to accurately allocate costs, analyze activities, and improve cost management processes for enhanced operational efficiency.

This training course on Advanced Cost Accounting & Activity-Based Costing covers the theory and application of ABC systems, cost driver analysis, and overhead allocation. Participants will learn to design costing models that reflect true resource consumption, identify cost-saving opportunities, and support performance measurement in diverse industries.

Target Audience

• Cost Accountants and Financial Analysts
• Management Accountants and Controllers
• Budgeting and Planning Professionals
• Operations Managers
• Internal Auditors and Consultants
• Pricing Analysts
• Supply Chain and Production Managers

Duration

10 Days

Course Objectives

1. Understand advanced concepts in cost accounting and ABC
2. Identify and analyze cost drivers and activities
3. Design and implement an Activity-Based Costing system
4. Allocate overhead costs accurately and fairly
5. Use ABC data for pricing and profitability analysis
6. Integrate ABC with budgeting and performance measurement
7. Identify opportunities for cost reduction and process improvement
8. Communicate costing information to support decision-making

Course Content

Module 1: Overview of Advanced Cost Accounting

• Cost classification and behavior
• Traditional vs activity-based costing
• Benefits and limitations of ABC
• Cost management strategies
• Role of cost accounting in business strategy

Module 2: Identifying Activities and Cost Drivers

• Defining activities and processes
• Selecting cost drivers
• Measuring resource consumption
• Data collection techniques
• Activity analysis tools

Module 3: Designing an ABC System

• Mapping activities to cost pools
• Assigning costs to activities
• Developing cost driver rates
• Implementing ABC software and systems
• Testing and validating the model

Module 4: Overhead Allocation Techniques

• Allocating indirect costs
• Handling joint and common costs
• Dealing with variable and fixed overheads
• Activity-based budgeting considerations
• Overhead variance analysis

Module 5: Using ABC for Pricing and Profitability

• Cost-plus pricing methods
• Product and customer profitability analysis
• Cost-volume-profit relationships
• Target costing and value analysis
• Decision-making based on cost data

Module 6: Integrating ABC with Budgeting and Control

• Linking ABC with budgeting processes
• Performance measurement and KPIs
• Cost control and continuous improvement
• Variance analysis using ABC data
• Reporting for management decision support

Module 7: Process Improvement and Cost Reduction

• Identifying non-value-added activities
• Lean accounting principles
• Cost driver optimization
• Benchmarking and best practices
• Change management in cost systems

Module 8: Capstone – ABC Implementation Project

• Developing an ABC model for a case study
• Analyzing cost and profitability results
• Presenting findings and recommendations
• Peer review and feedback
• Implementation planning

General remarks

• Customizable courses are available to address the specific needs of your organization.
• The participant must be conversant in English
• Participants who successfully complete this course will receive a certificate of completion from Lenol Development Center.
• The course fee for onsite training includes facilitation training materials, tea break and lunch.
• Accommodation and airport pick up are made upon request
• For any inquiries reach us through info@lenoldevelopmentcenter.com or +254 710 314 746
• Payment should be made to our bank