Activity-Based Costing (Abc) Course in Singapore
Activity-Based Costing (Abc) Course in Singapore
Activity-based costing (ABC) is a method of cost accounting that has been mostly used by the manufacturing industry. This is because ABC takes into consideration the costs spent on the activities (or manufacturing) leading to the production of the product. This produces a more accurate assignation of true costs to the final products.
This Activity-Based Costing (Abc) workshop is ideal for anyone who would like to gain a strong grasp and improve their Activity-Based Costing (Abc).
All Staff Within An Organisation
The ideal group size for this Activity-Based Costing (Abc) course is:
Minimum: 5 Participants
Maximum: 15 Participants
The duration of this Activity-Based Costing (Abc) workshop is 2 full days. Knowles Training Institute will also be able to contextualised this workshop according to different durations; 3 full days, 1 day, half day, 90 minutes and 60 minutes.
2 Full Days
9 a.m to 5 p.m
Below is the list of course benefits of our Activity-Based Costing (Abc) course
- Understand what Activity-Based Costing is.
- Recognize how ABC is being applied today
- Learn how to use an ABC management system
- Appreciate the benefits of Activity-Based Costing
- Have the ability to discern whether a company should adapt an ABC management system
- Execute an effective transitioning between an old system to an ABC management system
- Study how to construct a ABC based system for the company
- Apply a merger between the existing database and an ABC based management system
- Deploy an ABC management system effectively
- Understand how to manage and maintain the Activity-Based Costing format in a company
- Learn the possible errors faced when deploying an Activity-Based Costing system
- How to sustain the Activity-Based costing system for long term in a company
Below is the list of course objectives of our Activity-Based Costing (Abc) course
- Define Activity-Based Costing (ABC)
- Evaluating the management role of ABC in modern organizations
- Discuss the usage of activities measures in the ABC system
- Determine how an ABC system can benefit a company’s costing process
- Evaluate the best scenarios when an ABC system can be implemented
- Present the steps in designing an ABC System in an organization
- Classify the necessary steps to build an ABC system database
- Assess proper steps to integrate an ABC system database on to an existing ERP system
- Identify the necessary steps to implement the Activity Based Management system
- Illustrate how to manage and maintain an organization through resource allocation, value analysis, and analysis of activity efficiency.
- List what to avoid in implementing an ABC system
- Learn how to sustain an ABC system in an organization for long term application
Below is the list of course content of our Activity-Based Costing (Abc) training course
- What is Activity-Based Costing (ABC)?
- How Activity-Based Costing is applied today
- Utilizing Activities Measures in an ABC System
- How Activity-Based Costing can benefit your company
- Should my company adapt the Activity-Based Costing management system?
- Transitioning to an Activity-Based Costing system
- Building the ABC database for your company
- Integrating current database with an ABC system database
- Steps to take in launching the ABC system
- Managing and maintaining the organization with the ABC system
- What to avoid during the implementation of the ABC system
- Long-Term application of Activity-Based Costing in an Organization
Each participant will receive the following materials for the Activity-Based Costing (Abc) course
Activity-Based Costing (Abc) Learner’s Guide
Activity-Based Costing (Abc) Key Takeaways Notes
Activity-Based Costing (Abc) Essentials Ebook
Activity-Based Costing (Abc) Course Handouts
Activity-Based Costing (Abc) 30-Day Action Plan
Activity-Based Costing (Abc) MindMaps Pack
Activity-Based Costing (Abc) PPT Slides Used During Course
Activity-Based Costing (Abc) Long-Term Memory Flashcards Pack
Activity-Based Costing (Abc) E-Learning Course
Activity-Based Costing (Abc) Online Video Course
Activity-Based Costing (Abc) Essentials Audiobook
Activity-Based Costing (Abc) Infographics Pack
Each course participant will receive a certification of training completion
There are 3 pricing options available for this Activity-Based Costing (Abc) training course. Course participants not in Singapore may choose to sign up for our online Activity-Based Costing (Abc) training course.
Contact us for the latest Activity-Based Costing (Abc) course schedules:
Phone: +65 6817 2530
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Post Training Support: A vast majority of training does not have any effect beyond 120 days. To work, training has to have a strong pre- and post-training component. Post-training reinforcement helps individuals to recall the understanding and ask questions.
Blended Learning: Learning does not occur in the classroom. Virtually everybody prefers distinct ways of learning. Successful learning should have a multi-channel, multi-modal strategy.
We Understand The Industry: We’ve got a profound comprehension of the business, business design, challenges, strategy and the that our participants are in and have designed the courseware to cater to their professional needs.
Course Content: Knowles Training Institute’s material is relevant, of high quality and provide specific learning results. Participants will leave the training course feeling as they have gained a strong understanding and will also be in a position to execute what they have learned sensibly.
Course Development — The workshop modules follow a systematic and logical arrangement. This structure helps to ensure that the course material allows the facilitators to deliver the course in a logical arrangement. Consider the subjects as building bricks into learning, our facilitators slowly build towards a comprehensive picture of this entire topic.
For example, the number of machine-hours is the cost driver that controls how much electricity is used and the cost of maintenance. Activity-based costing systems empower manufacturing companies to accurately designate overhead costs to specific products by using multiple cost drivers.
Activity-based costing (ABC) is a system of assigning overhead and indirect costs—such as salaries and utilities—to goods and services. The ABC system of cost accounting is calculated with the basis on activities, which can be any unit of work, event, or task with a particular goal.
Activity-based costing provides a more precise method of product/service costing, leading to more precise pricing decisions. ABC allows the practical testing of operating costs to find better ways of allocating and eliminating overheads. It also improves product and customer profitability analysis.
The business must solve for the cost of each overhead component on a per-activity-unit basis, which is the component cost apportioned by the activity volume, to designate the cost of each overhead component to a particular product.
These are the advantages of ABC:
- Accurate Product Cost
- Information about Cost Behaviour
- Tracing of Activities for the Cost Object
- Tracing of Overhead Costs
- Better Decision Making
- Cost Management
- Use of Excess Capacity and Cost Reduction
Disadvantages of Activity-Based Costing are:
- Collection and preparation of data are time-consuming.
- Costs more to accumulate and analyse information.
- Source data is not always easily available from the comprehensive accounting reports.
The five steps are as follows:
- Identify expensive activities needed to create products.
- Allocate overhead costs to the activities named in step 1.
- Name the cost driver for each activity.
- Calculate a planned overhead rate for each activity.
- Allot the overhead costs to these products.
There are two primary stages in ABC— first, tracing costs to activities; second, tracing activities to products.
Activity-based costing is a costing method that recognises activities in an organisation and assigns the cost of each activity to all products or services according to the practical consumption of the products or services. This model assigns more indirect costs into direct costs compared to traditional costing.
- Step #1: Activity Identification. First, identify activities and group them into activity pools.
- Step #2: Activity Analysis.
- Step #3: Assignment of Costs.
- Step #4: Calculate Activity Rates.
- Step #5: Assign Costs to Cost Objects.
- Step #6: Prepare and Distribute Management Reports.
Activity-based costing (ABC) is widely used to precisely allocate indirect costs to medical services. In the ABC method, the indirect cost is divided among the medical services in proportion to the volume of “cost drivers”, for example, labour hours and the number of hours of surgery.
Activity-based costing provides a more reliable method of product/service costing, leading to more precise pricing decisions. It improves the understanding of overheads and cost drivers; and makes costly and non-value adding activities more apparent, allowing managers to reduce or eliminate them.
Use product costing methods to assign a cost to a manufactured product. The main costing methods available are process costing, job costing and direct costing. Each of these methods applies to various production and decision environments. Job costing is the assignment of costs to a specific manufacturing job.
The essential formula for activity-based costing is the total cost pool divided by cost driver, giving the cost driver rate. Use the cost driver rate in activity-based costing to calculate the overhead and indirect costs of the particular activity.
Limitations of ABC
The information produced from an ABC system does not conform to recognised accounting standards, such as GAAP (generally accepted accounting principles), and can, therefore, only be used for internal reporting purposes.
What are three advantages of ABC over conventional volume-based allocation processes?
- Ease of use
- More detailed product costing
- More efficient cost control
Other advantages include fewer allocation bases, ease of use, and a direct correlation to production volume.
Job order costing also gives managers the advantage of being able to keep track of individuals’ and teams’ performance in terms of cost-control, efficiency and productivity. A disadvantage of job order costing is that employees are required to track all materials and labour used during the job.
Activity-based costing systems, known as ABC systems in practice, are not compliant with generally accepted accounting principles. However, this does not mean that ABC systems are not useful. ABC systems provide valuable information for managerial decision-making.
One of the significant reasons that ABC is not compliant with GAAP is that ABC systems do not charge all manufacturing costs to products. Organisation-sustaining costs, such as expenses related to factory security, heating and air conditioning and building rent, will be incurred, notwithstanding the level of production.
ABC systems are more accurate than traditional costing systems. The reason is because they provide a more precise breakdown of indirect costs. Nevertheless, ABC systems are more complex and more costly to implement. The leap from traditional costing to ABC is difficult.