Course Overview

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Course Introduction
The foundation of better and effective decision making is accurate, actionable information. Activity based costing (ABC) is the tool which can provide this information. The result will be - reduced costs, increased profits and fundamental organisational change leading to improved efficiency. However, while many executives understand the contribution ABC can make, the practicalities of introducing ABC can often seem daunting.

Please note: All participants should bring a laptop computer and be familiar with the basics of Microsoft Excel. The aim of the programme is to equip delegates to return to their organisations and be able to apply the knowledge on how to control their costs more effectively.

Course Timings:
Registration will be at 08.00 on the first day of the course. The course days will commence at 08.30 and conclude at 14.30 with lunch. There will be breaks for refreshments at approximately 10.30 and 12.30 each day.

Session One
The Principles And Benefits Of ABC
Exactly what is ABC and what benefits should it facilitate. This session gets beyond the hype and jargon to consider the realities, to maximise the potentials and to minimise the downsides of ABC – thereby to deliver real and
sustained business benefit.

• The Basics Of ABC – What It Is And How It Fits In
• Clarifying The Jargon
• Exploring ABC In Detail
• How Does ABC Fit With Other Management Tools

Session Two
Practical Application Of Simplified ABC
Potential users of ABC are sometimes deterred by the apparent complexity, detail (and implied associated expense) of applying a full ABC approach. In this session you will explore a “simplified” approach – ideal for both the smaller organisation and also for a first phase of more traditional ABC in larger organisations.

• What Is Simplified ABC – Its Benefits And Limitations
• How Can You Practically Apply Simplified ABC: What Is The Process?
Case Study Examination

Session Three
Implementing Full ABC
The practical issues of how to implement ABC. What should be the relationship and responsibilities between finance and other business and support units.
• Accuracy Of ABC
• Implementing ABC
• Applying ABC

Session Four
Using ABC Within A Cost Management Programme

• Cost Management
• Case Study
• Product And Customer Profitability
• Linking ABC To Other Bases Of Cost Analysis
• Programme Conclusions And Next Steps