Make better decisions using your financial data. Learn how to design and implement activity-based costing to understand overhead costs and assign costs appropriately.
- I'm sure your business already has traditional accounting systems in place. You know what your direct costs are, and you probably also know your total overhead costs. But when you try to assign overhead costs to products and services, how accurate are you? Do you even know which service lines are making money? Do you have a loss leader? You don't have to remain ignorant here. Using activity-based costing, or just ABC, can help answer these questions. ABC is a system of assigning indirect costs to the products and services that consume them. Now it may seem a little abstract at first, and perhaps even complicated, but with a little preparation and a sound approach, ABC can be made easy. Let me take the pain away for you, and walk you through the process step by step. By the end of this course, you'll be looking at your financial data in a whole new light. And the best part, you'll be able to more confidently and accurately understand the value and benefits that ABC can deliver to your organization.
- Why use activity-based costing (ABC)?
- How ABC can help organizations make more informed decisions
- Defining cost objects and activity drivers
- Reviewing source data
- Building the ABC model
- Preparing ABC reports
- Advising stakeholders on outcomes