Know Your Cost: Double Your Profit

Companies with poor cost information make bad decisions about products that are not "average". Poor information causes companies to overprice easy, high-volume "gravy" products and underprice difficult, low-volume "dog" products. Learn how to double your profit by giving the dogs to your competitor and keep the gravy for yourself.

Class Details

Class Name:
Know Your Cost: Double Your Profit
Description:
Companies with poor cost information make bad decisions about products that are not "average". Poor information causes companies to overprice easy, high-volume "gravy" products and underprice difficult, low-volume "dog" products. Learn how to double your profit by giving the dogs to your competitor and keep the gravy for yourself.
Audience:
  • Cost Accountants
  • Cost Engineers
  • Controllers
  • CFOs
  • Estimators
Duration:
1 Day Course
Language:
English

Learning Objectives

  • Learn how to analyze product costs accurately.
  • Understand costing methods that will lead to better management decisions about products.
  • Explore how good design can improve both financial and management accounting information.

Review:

  • German accounting methods
  • Activity-based costing
  • Throughput accounting
  • Joint & by-product costing

Outline At-a-Glance

Understand Real Costs

  • Why traditional approaches are inadequate
  • How superior cost information can double your profit
  • Make Activity Based Costing spreadsheet easy
  • Accurately understand overhead costs
  • Recognize joint and by-products
  • Add throughput costing to your toolbox

Accurately Assign Costs

  • Product development and launch costs
  • Depreciation
  • Occupancy costs
  • Supervisory costs
  • Information technology costs
  • Administrative costs
  • Selling costs
  • Excess capacity costs
  • Interest and the cost of capital

Cases and Group Discussion

  • This seminar includes six exercises to facilitate group discussion.

Job Roles