Seminar 2






Activity Based Cost Allocation Systems

This topic focuses on the principles of Activity Based Costing (ABC), which is shown as the response to the challenge of complexity. Aspects such as “volume”, “structural” and “introductory” costs are specifically considered.

  • ABC: The Response to Complexity in Modern Firms
  • The Fundamentals of ABC
  • Cost Drivers
  • Activity Analysis
  • Advantages and Limitations of ABC
  • Case Study: Comparison of Cost Allocation Systems

Customer Profitability Analysis

This topic moves the focus from analysis to action.  Methods of finding profitable customers and products are considered, as is the area of account management.

  • Finding Profitable Customers and Products
  • Uncovering Hidden Profits and Losses
  • Improving Customer Strategy
  • The Profitability Matrix
  • Targets for Action
  • Account Management for Relationship Marketing
  • The Impact of Cost Reducing Actions
  • Case Study: Analysing Customer and Product Profitabilities


Process Control and Activity Based Management

Here the areas of process control and activity based management are discussed. Monitoring systems, and the concepts of frequency, timeliness and accuracy are considered, especially in relation to white-collar departments.

  • Monitoring Systems
  • Measuring the Performance of a Process
  • The Key Performance Variables to be Measured
  • Frequency, Timeliness and Accuracy
  • Controlling White-Collar Departments
  • Activity Based Budgeting
  • Feedback Systems under ABM


Implementing Cost Analysis and Control Systems

This outlines the implementation process of activity based costing. Behavioural aspects, especially in creating motivation are discussed. Long-term cost management models are also considered.

  • Creating Implementation Motivation
  • Training, Evaluation and Information
  • Project Organisation
  • Project Analysis
  • Project Synthesis (Model Building)
  • Long-term Cost Management Model
  • From Project to Steady State