Date and venue: 28.09.2017.  -  29.09.2017., Westin Zagreb
Activity Based Costing (ABC)

Course overview

Activity Based Costing (ABC) is a proven method to increase cost transparency of general cost areas. This two day workshop focuses on the methodology of Activity Based Costing and implementation toolkit from practical point of view. At the end of the workshop, participants will obtain an in-depth understanding of the methodology and implementation steps and toolkits. There will be extensive use of a range of real life examples, case studies, discussions to achieve the goal mentioned above.

Learning outcomes

To enable participants to:

  • decide in which cases Activity Based Costing are worth implementing
  • obtain a detailed understanding of the ABC methodology
  • understand the benefits delivered by ABC
  • be familiar with the implementation methodology and toolkit

Learning methods

The participants will acquire the knowledge and skills through lecture, demonstrations, practical exercises, discussion, individual work and group work with other participants and trainer.

Who should attend?

The workshop will be useful for:

  • Chief accountants
  • Finance directors
  • Finance managers and accountants
  • Financial controllers
  • Management accountants
  • Information system managers
  • Service unit leaders (IT, Back office etc.)

Day 1: Introduction of Activity Based Costing Methodology

08:30 - 09:00 Registration

09:00 - 10:30 Overview of Management Accounting

  • Key differences between Accounting and Management Accounting
  • Structure and basic logic of Management Accounting
  • Relationship of Management Accounting and ABC

Practical case study: Discovering differences between Accounting and Management Accounting

10:30 - 10:45 Break

10:45 - 12:15 Activity Based Costing – Basic logic

  • Logic of the ABC
  • From Activity Based Costing to Time Driven Activity Based Costing
  • Industries, areas which prefer applying ABC and what are the benefits
  • Major decision points (Cost types, Capacity measurement, Allocation of idle costs, direct process costs) in the methodology and their consequences

Practical case study: Calculation of process costs of an HR area

12:15 - 13:15 Lunch

13:15 - 14:45 Integration of ABC in Management Accounting

  • Content of the integration
  • Semi-integrated approach – when to use it
  • Integrated approach – when to use it

14:45 - 15:00 Break

15:00 - 16:30 IT support of Activity Based Costing

  • Functions which must be fulfilled by IT support
  • Typical IT architecture
  • Standard IT Solutions
  • Open source solutions
  • Major risks in IT implementation

Practical case study: Developing Excel calculation template for ABC


Day 2: Activity Based Costing Implementation Guideline

09:00 - 10:30 First step: Goal setting and defining basic structure

  • Typical goals for ABC
  • Impact of the goal setting for the complexity of the system
  • Basic data structure and major decision points

Practical case study: Instant poll to collect opinions about these topics

10:30 - 10:45 Break

10:45 - 12:15 Second step: measuring capacity

  • Time horizont for the measurement
  • Methods and ways of capacity measurement (e.g. stop watch, time allocation method)
  • Pros and cons of each method

Practical case study: Instant poll to collect opinions about these topics

12:15 - 13:15 Lunch

13:15 - 14:45 Third step: Calculation of process costs and maintenance of the system

  • Method to define the right time norm
  • Validation of cost norms
  • Maintenance: Major causes for changes in the system

Practical case study: Instant poll to collect opinions about these topics

14:45 - 15:00 Break

15:00 - 16:30 Summary of Activity Based Costing – major fields of application

  • Integration into margin calculation
  • ABC based OPEX Planning
  • Capacity Planning

Practical case study: Margin calculation and planning case study

This workshop will be conducted in English.



Zoltán Szegedi

Zoltán Szegedi, Competence Center Financial Industries, Hungary, Partner and Consultant in Horváth & Partners, Master of Economics

Project experience:
Strategy design and linking strategy with the motivation, remuneration system at a Hungarian commercial bank
Management of numerous process improvement projects at Hungarian commercial banks
Management of efficiency increase programs at Hungarian leasing companies and banks
Strategy design, financial modeling at a Russian leasing company
Strategy design at a Hungarian leasing company
Office for Strategy Management at Ministry of Labor at KSA
BSC design of a Hungarian insurance company
Development and implementation of activity based costing systems at Hungarian commercial banks
Management of risk relevant projects on the field of portfolio restructuring and collection

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