Activity-Based Management

Overview

This CPE course explores activity-based costing approaches, such as activity-based management, direct product profitability, direct customer profitability and distribution channel profitability. It also examines the cost hierarchy framework that maintains that costs are driven by, and are variable with respect to, activities that occur at four levels: unit-level, batch-related, product-sustaining, and facility-sustaining. In addition, this course includes details regarding the challenges with implementing activity-based costing and activity-based management.

Highlights

? Activity-based costing - basics revisited ? The activity-based costing procedure ? The activity-based cost hierarchy ? Activity-based costing - benefits and limitations ? Activity-based costing and decision making ? Activity-based management ? Outputs from the activity-based management information system ? Problems with implementing activity-based costing/activity-based management ? Direct product profitability ? Customer profitability analysis ? Customer profitability curve ? Pareto analysis ? Distribution channel profitability ? Activity-based budgeting

Designed For

Management accountants wanting to develop skills in financial performance management CGMA exam candidates

Objectives

? Recognize the benefits and limitations of activity-based costing. ? Indicate the usefulness of activity-based costing in decision making. ? Identify the uses of activity-based management outputs in improving the efficiency of repetitive overhead activities. ? Calculate direct product profit. ? Recognize direct and activity-based cost methods in tracing costs to “cost objects” such as customers or distribution channels.

Notice

Audio, Slides, some Interactive elements