Advanced Cost Management for Business Competitiveness

Institution HRODC Postgraduate Training Institute, A Postgraduate-Only Institution
Method At the institution
Location London
Type Postgraduate
Course fee By request

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Advanced Cost Management for Business Competitiveness

Objectives Participants gain the insights they need to win in the global marketplace. Key subjects that the seminar addresses include:

Information for informed management decisions

Management use of management accounting information

A new role for the management accountant

Cost management and Strategy

Basic Cost and Cost Analysis

Cost Behaviour and Cost Estimation

Different Approaches to Costing (Standard Costing, Activity-Based Costing,)

Product costing in multinational firms

Cost Planning and Budgeting

Decision Making with Relevance Costs and a Strategic Emphasis
Practical experience Use of Video Cases; Written Cases; Simulations and Industrial Visits.
Entry requirements 1st Degree or Equivalent Qualification
Academic title Diploma - Postgraduate in Advanced Cost Management
Course description
PROGRAMME OUTLINE

DAY 1 – Management and Cost Management Fundamentals: A Review of Key Cost Concepts

The accountant’s role in the organization

An introduction to cost terms and purposes

The use of cost management information

Creating cost-aware organizations

Review of some key cost concepts

Product vs. Period costs

Direct and Indirect Costs

Cost behaviour: Fixed and Variable Costs

Problems and Examples

DAY 2 – Different Approaches to Costing: Part 1

Absorption (Full) vs. Variable costing

Under-costing and over-costing: the consequences for profitability

How to refine a costing system?

Activity-based costing (ABC) and cost-management

Cost hierarchy & Cost drivers

Linking resources, activities and management

Introducing Activity-based management (ABM)

Linkages between ABM and ABC – monitoring value creation

Problems, Case Study and Examples

DAY 3 – Different Approaches to Costing: Part 2

Job-costing systems

Process costing systems

Cost allocation

Cost allocation: joint-cost situation

Transfer pricing

Problems, Case Study and Exercises

DAY 4 – Different Approaches to Budgeting

Fixed and flexed budget (static and flexible budget)

Rolling budget

Zero based budgeting

Activity based budgeting

Master budget

From costing to budget: interpreting variances (variance analysis)

Integrate continuous improvement into variance analysis.

Problems, Case Study and Exercises

DAY 5 – Cost Planning and Pricing Decisions: Life-Cycle-Costing, Target costing and Target Pricing

Linking process development to costing

Target costing, target pricing and its implications

The three major influences on pricing decisions

Distinguish between cost incurrence and locked-in costs

Cost plus approach to pricing

Life cycle product budgeting and costing to assist in pricing decision

Problems, Case study and Example