ABC Costing Workshop in Financial Services and Other Services Industries
Workshop Objectives
Participants acquire knowledge of an analytical methodology focused on the analysis and decision making of cost reduction, increased profitability and process improvement through accurate cost calculations for the service industry in general: financial services, development or commercial banking, insurance sector, micro-finance institutions, brokerage firms, calculating ABC costs using MS Excel, solving a practical case of their organization.
Benefits of Activity-Based Costing
The methodology generates accurate cost information based on the activities carried out by the organization. The analysis and use of information allows to easily detect and capture opportunities for:
- Costs Reduction
- Improvement of the efficiency of processes and activities
- Analysis of utilization and capacity of activities
- Profitability Analysis
- Analysis and optimization of product portfolio by client
- “Activity-Based” Budgeting
- Determination of Management Indicators
Knowledge Transfer / Agenda
Focused on participants:
- Knowing the methodology of activity-based costing – ABC in its different modalities: Push Model, Pull Model, Time Drive
- Preparing the accounting and resources to include in ABC Costing.
- Knowing techniques for surveying Activities and Processes.
- Identify cost objects: customers, products, channels, business segments for which real costs and profitability are required.
- Determine drivers for cost allocation.
- Integrate profitability.
- Learn how to analyze ABC information to reduce costs, improve processes, increase profitability, and create budgets.
- Determine key financial and non-financial performance indicators.
Practical Case and Example of ABC Costs in Services
Participants must have computer equipment since they will be provided with Excel files so that they can carry out the practical case for their industry.
Example of ABC Costs for Services
ABC Costing Example for Banks
ABC Costing Example for Insurance Companies and ABC for Insurance Agents
ABC Costing Example for Micro-finance Companies
Other service industries:
ABC Costing Example for Customs Agents
ABC Costing Example for Notaries
ABC Costing Example for Customs Agencies
ABC Costing Model for Financial Services
A model for ABC Costing represents all operational areas of the organization, involves accounting (recorded costs and expenses) and the business segments to be costed (products or services, product families, regions, customers, branches). A model contains the operational structure. On the model, the data changes from period to period and therefore the results obtained by the organization.