Course Title:

Activity-Based Costing and Quoting

Instructor:

To Be Assigned

Course Description:

This course introduces participants to the fundamentals of Activity-Based Costing and Quoting (ABCQ). It attempts to trace the costs of all significant value-added and non-value-added activities back to the products, projects, or processes that consume them. This method provides more accurate cost information to the decision-makers in order to alter product prices, institute cost-reduction measures, outsource, promote, abandon, or modify product levels. This method provides the cost information closer to fact -- instead of the allocation of overhead costs as a simple proportion of direct labor costs. A Microsoft Excel based model will be introduced as part of this course.

 

Course Objectives:

At the end of this course, participants will be able to:

Allocate the organizational costs to individual activities and products in a more precise method.

•  Allocate appropriate amount of the overhead costs to the high direct labor cost products instead of a large proportion of all overhead costs.

•  Relate activities, cost objectives, and cost drives relate to each other.

•  Identify the non-value-added activities and products.

•  Find the direct relationship between direct labor and the cost of supporting overhead.

•  Realize the weakness of traditional practices and the use of ABCQ for product development, product promotion, productivity improvement, and waste reduction.

 

Main Topics to Be Covered:

Why, when, where ABC

ABC Model

Advantages/Disadvantages of ABC

Differences between traditional and ABC

ABC cost hierarchy

Steps for implementing ABC

Impact on product cost

Action analysis report

 

 

Intended Audience:

Decision-makers, Managers at all levels, Accountants, Engineers, and/or any individuals with direct or indirect responsibility for cost related issues.

Method of Delivery:

In class and hands-on is preferred. Video and/or online might be as effective.

Course Duration:

Two hours (overview), one day (essentials), two days (completed course)

 

Prerequisites:

Algebra

Computer Requirements:

Microsoft Excel

 

Enrollment Size:

Minimum #:

8

Maximum #:

12

Course Content:

Applied:

80%

Theoretical:

20%