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

Markets We Serve