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Introduces the foundations of strategic cost management and explains why organisations analyse cost structures. Learners explore how cost information supports managerial decisions and how organisations interpret cost behaviour across products, services and operational processes.
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Practical Guide to Activity-Based Costing
This is part of Finance Fundamentals Package
Practical Guide to Activity-Based Costing
This is part of Finance Fundamentals Package
Workshop Overview
Many organisations rely on costing approaches that allocate overhead broadly and hide the real drivers of cost. This programme introduces the principles of Activity-Based Costing (ABC) and explains how organisations analyse cost structures using activities and cost drivers. Through clear explanations and industry examples, learners understand how ABC frameworks describe cost behaviour and profitability patterns..
Programme Structure
Key Module 1: Strategic Cost Management Foundations
Key Module 2: Traditional Costing Methods: Concepts and Limitations
Explains traditional costing methods and the assumptions behind them. Learners examine how overhead costs are allocated using conventional approaches and why these methods can distort cost visibility in complex organisations.
Key Module 3: PIntroduction to Activity-Based Costing: Roots and Assumptions
Introduces the origins and principles of Activity-Based Costing. Learners explore why ABC emerged as an alternative to traditional costing and how the framework connects operational activities with cost analysis.
Key Module 4: The Integration of ABC and the Whale Curve
Introduces the Whale Curve and explains how profitability can vary across customers, products and channels. Learners explore how cost visibility influences the interpretation of profitability patterns.
Key Module 5: Elements of Activity-Based Costing: Resources, Activities, and Cost Objects
Explains the structural components of Activity-Based Costing. Learners examine how organisations define resources, activities and cost objects, and how these elements form the foundation of ABC models.
Key Module 6: Advanced ABC Methods: TDABC and RCA
Introduces advanced Activity-Based Costing approaches, including Time-Driven ABC and Resource Consumption Accounting. Learners understand how these methods extend traditional ABC frameworks.
Key Module 7: Strategic Application & Implementation of ABC
Explains how organisations interpret ABC insights in strategic contexts. Learners explore how cost visibility supports discussions about profitability, product structures and operational decisions.
Business Outcomes
After completing this programme, learners understand the concepts and terminology used in Activity-Based Costing and modern cost analysis. They recognise how cost drivers, activities and cost object’s structure cost models and can explain the logic behind ABC frameworks. The programme builds a shared conceptual understanding of how organisations describe cost behaviour and profitability patterns.
Is this right for your organisation?
This programme is suitable for organisations introducing teams to modern cost management concepts. It works well for managers in finance, operations or commercial roles who need a clear explanation of Activity-Based Costing and cost analysis terminology.
Programme Impact
The programme builds a foundational understanding of how organisations analyse cost structures using Activity-Based Costing. Learners become familiar with the terminology, concepts and frameworks used in modern cost management discussions.