Understanding and implementing
Target audience
- Management control directors
- Finance directors
- Anyone interested in this topic
0.5 day
Virtual Classroom
Prerequisites
ABC ABM distance learning
Prerequisites: prior knowledge of cost structure and margin calculations is required.
Materials: training materials and the link to the virtual classroom are provided the day before the course.
Objectives
◗ Implementing the ABC (Activity Based Costing) method
◗ Understand the structuring and management of the data needed to deploy ABC
◗ Implement an ABM (Activity Based Management) analysis with an analytical dimension and by crossing several dimensions
◗ Assess how ABM contributes to management decisions and performance improvement levers.
Contents
◗ Understanding the fundamentals of ABC
- What is a relevant analytical dimension?
- How can a product appear profitable when it isn't?
- Differences between costs and resource consumption
- Resources, activities, resource drivers, cost drivers, cost object/dimension
dedicated costs: diagram and key concepts
✔ UNDERSTANDING | Illustration: complete 3-level ABC model (resources > activities >
object/dimension)
✔ EXPERIMENTATE | Illustration: the smartphone, the case of Apple and the iPhone 13
✔ APPLY | Case study: analysis of the "Engineering Academy" case and transformation
into an ABC profit center
✔ ASSESS | Quiz: in your opinion... What are the strengths and weaknesses of the proposed scheme?
◗ Allocate costs more appropriately
- Identifying suitable inductors: simplicity, availability and objectivity
- Limits of arbitrary keys: distortions and biases
- Information sourcing and updating: the case of operational and support activities
✔ APPLY | Case study: allocate shared resources to several activities
using selected drivers
✔ EVALUATE | Guided study: comparison of 3 allocation rules
◗ Managing performance by activity with ABM
- Distinguish between value-added and non-value-added activities, reduce or
outsource tasks, share tasks, optimize task costs
- ABM application examples: action plans, benchmarks, channel margins
✔ EXPERIMENTALIZING | Illustration: Are there any concrete examples in the learner's perimeter?
of the learner?
Teaching and assessment methods
◗ Distance learning:
- Three visuals: video presenter, presentation, virtual flip chart
- Interactive quizzes
- 6 participants maximum
Before: self-assessment quiz
During the session: presentation of the main principles, practical implications, examples drawn from recent financial statements. Practical case studies and interactive quizzes ensure that knowledge is acquired.
Afterwards: the trainer is available at the end of the course to answer any questions relating to the training.
See our full training catalog.
Train from the comfort of your home or office! Find all our "3-hour essentials" modules here
Price
740 EXCLUDING VAT
Testimonials
ABC ABM distance learning
ABC ABM distance learning
ABC ABM distance learning
ABC ABM distance learning
Jonathan C.
Company
Training