Course Description
For many years, the terms activity-based costs (ABC) and activity-based management (ABM) have
been proposed in the field of project management as a way to better understand the role of human
efficiency and effectiveness in project completion.
Activity-based costs (ABC) refer to the
sophisticated manner in which direct and indirect costs are attached to an activity. Activity-Based
Costing (ABC) is a costing model that identifies activities in an organization and assigns the cost of
each activity resource to all products and services according to the actual consumption by each: it
assigns more indirect costs (overhead) into direct costs. In this way, an organization can establish
the true cost of its individual products and services for the purposes of identifying and eliminating
those that are unprofitable and lowering the prices of those that are overpriced.
Course Outline
Day 1:
The various costs in an organization
Real costs and cost behaviors in project management
The history of activity-based costs
Understanding Earned Value Management
The Activity-Based Costing Methodology
Activity-Based Costs
Processes
Changes to accounting principles
Methodology
Project-based calculations
Practice Exam – Day 1
Day 2:
Activity-Based Roles
Resource allocation approach
Different ways to calculate earned value
Converting indirect costs to direct costs
Fixed time versus Fixed effort techniques
Project Governance
ABC perspective
Responsibility & Accountability
Activity-Based Management/Culture Change
Elements of Organizational Responsibility
Practice Exam – Day 2
