Ultimately costing principles, such as the causality principle, must be converted into practical practices with supporting tools. This presentation examines how cost modeling has evolved over the last century. It will describe the trends and obstacles that have helped or delayed developments. These evolving areas and trends include:
- The expansion from product costing to include channel and customer profitability reporting and analysis.
- The integration of managerial accounting with other enterprise and corporate performance management (EPM/CPM) methods (e.g., the balanced scorecard, incentive compensation, risk management, supply chain management)
- The shift from historical reporting to predictive accounting (e.g., marginal / incremental costing; capacity-sensitive driver-based rolling financial forecasts, performance-based and driver-based budgeting, customer lifetime value [CLV] )
- Imbedding analytics into managerial accounting (e.g., correlation and segmentation analysis, recursive partitioning with decision trees)
- Acceptance of two or more co-existing managerial accounting methods
- Chargebacks to internal users and service level agreements of information technology (IT) and shared services.
- Recognition of barriers slowing the adoption rate of advanced managerial accounting (e.g., resistance to change, being held accountable, weak leadership) to gain buy-in.
- Identify and differentiate strategic KPIs in a balanced scorecard and operational performance indicators (PIs) in dashboards.
- Observe how to calculate profit and loss statements for customers displaying profit margin layers.
- Understand how to perform “predictive accounting” for capacity-sensitive driver-based budgets / rolling financial forecasts, what-if analysis, and outsourcing decisions.
- Recognize how to imbed statistics and analytics into product, channel, and customer profitability analysis.
- Understand how to overcome implementation barriers such as behavioral resistance to change and fear of being held accountable.
- None required.
Who Should Attend
CPAs and other business professionals who are interested in learning more about trends in management accounting.
Gary Cokins, CEO of "Analytics-Based Performance Management LLC": https://www.garycokins.com is an internationally recognized expert, speaker, and author in advanced cost management and performance improvement systems. He is the founder of Analytics-Based Performance Management, an advisory firm located in Cary, North Carolina. Gary received a BS degree with honors in Industrial Engineering/Operations Research from Cornell University in 1971. He received his MBA from Northwestern University’s Kellogg School of Management in 1974.
Gary began his career as a strategic planner with FMC’s Link-Belt Division and then served as Financial Controller and Operations Manager. In 1981 Gary began... Read more
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