Activity-Based Costing FLEXCAST

Overview

This course offers an in-depth exploration of an essential costing methodology, tailored to meet the needs of professionals dealing with complex financial decisions. This course stands out by providing a clear and detailed understanding of how to allocate overhead costs accurately, a crucial aspect for any business’s financial health. Participants will benefit from learning the differences between direct and overhead costs, and how misallocations can occur in different operating environments. The CPE course sheds light on the intricacies of activity-based costing, including the processing steps and the distinction between primary and secondary cost pools. Additionally, it offers insights into the types of activity drivers within a business and how to effectively use them for cost allocation. The self-study CPE course also guides on setting up and managing a successful activity-based costing project, detailing the contents of a bill of activities and the allocation treatment for various administrative costs. By understanding the advantages and optimal scenarios for applying activity-based costing, participants will be well-equipped to improve their decision-making processes, leading to more accurate and beneficial financial outcomes for their businesses.

Highlights

Direct costs. Overview of activity-based costing. The bill of activities. The cost hierarchy. Overhead costs in detail. The best circumstances for activity-based costing.

Prerequisites

None.

Designed For

CPAs, CEOs, CFPs, and other accounting professionals.

Objectives

Recognize the differences between direct costs and overhead costs. Specify how overhead can be mis-allocated in different operating environments. Describe the allocation problems associated with a single allocation base. Describe the processing steps used in activity-based costing. Specify the differences between primary and secondary cost pools. Identify instances in which the refresh rate for activity drivers can be delayed. Describe the different types of activity drivers that can be found within a business. Specify the contents of a bill of activities. Recognize the allocation treatment for the different types of administrative costs. Identify the situations in which additional cost pools and activity drivers should be added. Specify the advantages and disadvantages of activity-based costing. Describe the circumstances under which activity-based costing can be most beneficial.

Preparation

None.

Notice

This is a FlexCast (no exam required) and may be viewed only Monday - Saturday, 5am - 5pm PT. You may take up to one year from the date of purchase to complete the course. Pause your FlexCast and resume at a convenient day during the hours above. Partial credit for 2+ credit courses: If you are unable to complete the course in one sitting, partial credit can be awarded (minimum of one credit). To earn the remaining credits, you must return later and start the course from the beginning. Use chat to ask questions of a subject matter expert during the program.