Activity-Based Costing

Course details

How accurately does your organization understand and assign overhead costs for the products it produces and the services it delivers? In this course, master the fundamentals of activity-based costing (ABC). Discover how to design and implement activity-based costing to grasp overhead costs and the activities that drive them, and assign costs appropriately. Instructor Joshua Rischin begins by pinpointing how ABC can help organizations make more informed decisions on its product and services. He then dives into the foundations of ABC, helping you understand the process, as well as how to define ABC model cost drivers. He then details how to source data, build your ABC model, and present your insights to stakeholders.

Learning objectives
Describe the type of business that will benefit most from using activity-based costing.
Summarize the history of activity-based costing.
Define a cost pool.
Explain the data needs for activity-based costing.
Summarize the process for reviewing source data.
Identify the purpose of building calculations.
Differentiate between inputs and outputs in activity-based costing.
Name the two main types of output in activity-based costing.
Describe what’s required for a framework to remain sustainable over time.

Concepts

0. Introduction

01 - Why use activity-based costing (ABC)
02 - How can ABC help my business
03 - What is ABC

1. ABC Foundations

04 - Understanding the ABC process
05 - Understanding cost pools
06 - Define the cost objects
07 - Define activity drivers

2. Sourcing Data

08 - Defining data needs
09 - Reviewing source data

3. Building the ABC Model

10 - ABC modeling tools
11 - Structuring your model
12 - Building calculations
13 - Including direct costs
14 - Adding quality assurance

4. Presenting the Results

15 - Preparing ABC reports
16 - Analyzing the outputs
17 - Advising stakeholders on outcomes
18 - A sustainable ABC framework

Conclusion

19 - Next Steps

Activity-Based Costing

Authors

Joshua Rischin