Course: Activity Based Costing

Activity Based Costing is utilized for auditing supplier' costs and developing detailed cost breakdowns based on actual plant operations.

Course Outline:

  1. Principles of Activity Based Costing
  2. Process Mapping
  3. Cost Allocation
  4. Cost Breakdown

Exercise Examples:

  • Supplier Audit:
    In this exercise, the class performs a mock supplier visit to build up the cost of a component or service

Expectations Upon Completion:

  • Ability to calculate supplier's actual costs to deliver parts or services
  • Skills to create detailed cost breakdowns based on plant observations
  • Capability to identify and utilize the various sources of data within a supplier's facility as negotiation leverage points
Supply Base Consolidation | Value Chain Analysis