Activity Based Costing is utilized for auditing supplier' costs and developing detailed cost breakdowns based on actual plant operations.
Course Outline:
- Principles of Activity Based Costing
- Process Mapping
- Cost Allocation
- 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