Course ID: PSCT

Principles of Strategic Cost Transformation

Assume your product costs $2.86. What does this tell you about your operations? How much money was spent on capacity and resources? How effectively were they used? How much output was there? Say there is a 3¢ negative variance. Does the $2.86 tell you what to change operationally?

A lack of alignment between accounting and operations leads to gaps in information and understanding. This leads to suboptimal decision making. This course introduces the Business Domain Management framework as a tool to create alignment and improve the ability of accounting and operations to communicate, share data, and work together to create solutions that improve the 3Cs; cash, costs, and capacity management.

“As a CPA with over 30 years of accounting experience, I certainly had to swallow my pride as I read this book. Dr Lee provides compelling evidence that you cannot rely on accounting information alone to make cash decisions.”
—Michael Hales Chief Financial Officer, Northern Kentucky University

NOTE: This course is available as an 8-hour workshop with hands-on breakout activities to help reinforce the ideas and tools introduced in the class.


Learning Objectives

  • Describe the limitations of managerial accounting information as a management tool
  • Understand how company-wide cash, cost, and capacity management framework offers a more robust perspective of company performance and enables enhanced decision making
  • Describe the differences between cash and non-cash costs (Hint: Product and service costs are non-cash costs)
  • Understand the role capacity plays in operations and cash management
  • Develop advanced cash models that will improve understanding of cash performance and the factors that do and don’t improve cash performance
  • Describe how to align operations and accounting
  • Ensure accounting is a strategic partner for operations

Major Topics

  • Improve overall cash performance of your company and clients’ companies
  • Avoid making decisions and investments that improve profit but destroy cash
  • Understand why companies are profitable yet have no cash, and how to avoid and improve such situations
  • Understand limitations of cost accounting and what information to use in addition to help improve cash, costs, and capacity use.
  • Based on the book, Strategic Cost Transformation, which introduces Business Domain Management, an organization-wide framework that provides better cost context and information, leading to improved decision-making

Who Should Attend

CPAs, CFOs, Controllers, COOs, VP Ops, Director Ops


Fields of Study

Business Management & Organization

Prerequisites

Study or experience with cost accounting and business operations


Provider

Business Learning Institute

CPE Credits

4.0

Level

Intermediate

This course is available for your group as:

 

Let's Roll!

To learn more or customize this course for your group, complete this form and a BLI team member will get back with you shortly.


Or, contact BLI: 888-481-3500 or learn@blionline.org
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