PF204e - Introduction to Activity Based Costing

Goals

• This two-to-three hour eLearning course presents the basic principles of activity based costing (ABC) and management.
• This course is intended to provide an introduction to the topic and to define common terminology.
• In addition, the concepts are illustrated through the use of examples, exercises, and sample calculations.
• The business benefit of this course is that you gain a basic understanding of activity based costing concepts.

Audience

• The target audience for this course is anyone who needs fundamental knowledge of the area of activity based costing.

Prerequisites

• * Prerequisite Education
• Not applicable for this offering. * Prerequisite Knowledge/Experience
• Not applicable for this offering.

Content

• What is activity based costing?
• • Define activity based costing (ABC)
  • Describe the origins of ABC
  • Differentiate between ABC and ABM
  • Identify the reasons why ABC has generated interest
  • Explain changing uses of cost information
• Using ABC in practice
• • Describe the difference in traditional costing and ABC calculations
  • Name two steps in the ABC calculation
  • Explain the improved accuracy of ABC over traditional costing methods
  • Identify the major advantages of ABC over traditional costing
• Exploring broader aspects of ABC
• • Describe activity types
  • Explain issues with activity analysis
  • Compare single dimensional, multidimensionality, and cascade approaches
  • Explain issues with cost object analysis
• Linking processes to ABC
• • Explain the relationship that activities have with process improvement
  • List the benefits of process improvement
  • Describe the CAM-I cross
• Examining activity based budgeting
• • Discuss how to use ABC to achieve better budgets
  • Complete a sample budget calculation
• Summarizing advantages to using ABC
• • Explain the two main advantages of output costing
  • List the benefits of using ABC for cost awareness
  • List the benefits of using ABC for cost control

Notes

• Course length: 2-3 hours
• Additional Education (Additional education offerings that we recommend include:)
• • BusinessObjects Activity Analysis: Foundation
• Applicable Certification
• • This course is not applicable to any Business Objects Certified Professional programs.

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