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Technical

Activity-Based Management Logo cgma

  Kaplan Publishing Limited |   $55.20 - 89.00 |   CPE: 3.0 |   AICPA |   Jul 2015 |   Business Mgmt. & Organization |   AICPA Store
Who Will Benefit?
  • Management accountants wanting to develop skills in financial performance management
  • CGMA exam candidates
Key Topics
  • Activity-based costing – basics revisited
  • The activity-based costing procedure
  • The activity-based cost hierarchy
  • Activity-based costing – benefits and limitations
  • Activity-based costing and decision making
  • Activity-based management
  • Outputs from the activity-based management information system
  • Problems with implementing activity-based costing/activity-based management
  • Direct product profitability
  • Customer profitability analysis
  • Customer profitability curve
  • Pareto analysis
  • Distribution channel profitability
  • Activity-based budgeting
Learning Objectives

When you complete this course, you will be able to:

  • Recognize the benefits and limitations of activity-based costing.
  • Indicate the usefulness of activity-based costing in decision making.
  • Identify the uses of activity-based management outputs in improving the efficiency of repetitive overhead activities.
  • Calculate direct product profit.
  • Recognize direct and activity-based cost methods in tracing costs to “cost objects” such as customers or distribution channels.
This CPE course is included in the 60+ hours of Financial Performance Management Program. It can also be purchased individually or as a part of Cost Accounting and Management.

This CPE course examines modern production environments and how activity-based costing may be more useful than traditional methods of costing (marginal and absorption). Activity-based costing is an alternative approach to product costing, that is a form of absorption costing, which first allocates overheads to cost pools before absorbing them into units using cost drivers. This course includes details regarding activity-based costing which has been developed to solve the problems that traditional costing methods create. In addition, this course examines when activity-based costing is relevant, as well as the advantages and disadvantages of this alternative approach.

Topics covered:
  • Management accounting: Technical: Cost accounting & management: Cost accounting, Foundational
  • Management accounting: Technical: Cost accounting & management: Cost management, Foundational

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