Is Activity-Based Costing the Right Tool for Your Organization?

This session provides a refresher regarding the fundamentals of activity-based costing (ABC). We will examine theoretical concepts before exploring practical possibilities for implementing ABC. A major focus of the course will be factors to consider when determining whether this managerial accounting tool is an appropriate resource for an organization.

Learning Objectives

Revisit the fundamental underpinnings of ABC
Understand what types of business entities may benefit from ABC
Appreciate potential benefits of ABC
Recognize limitations of ABC

Major Topics

ABC versus traditional costing
First-stage allocation
Determining predetermined overhead rates
Second-stage allocation
Activity-based reporting
Activity-based management

CPE Credits Available

Total CPE

2: Accounting & Auditing

Things to Know About This Course

Course Level

Intermediate

Prerequisites

Basic working knowledge of financial statements and business processes

Advanced Preparation

None

Intended Audience

Accountants who have not recently considered ABC but want to revisit the cost-benefit prospects of ABC for potential utilization for their clients or their employing organization

November 30, 2022