Effective cost, margin and profitability management

This event was recorded on 25 March 20256

Overview

With increased complexity in business operations and a greater shift of resources into “background” and overhead activities, we need improved transparency how both costs and revenues are driven, going beyond that provided by traditional accounting statements, budgets, analysis and reporting - in order to find where the unrecognised cost reduction, margin boosting and profit-making opportunities are. This involves adopting a range of practices and techniques beyond those traditionally employed and recognising that the preservation and enhancement of value produced is the key to success.

Key features:

• Changing the language of cost
• What do we really mean by fixed cost, variable cost?
• Opening up the “overhead box”
• Enduring cost effectiveness is an ethic, not an exercise
• What is lean thinking and taking a lean approach to all we do
• The causes of waste
• Seeing the business as a producer of value
• “Good” cost vs “Bad” cost – combining cost reduction AND value enhancement
• How are our costs driven…. and what drives value?
• Customer and business value adding activities
• Avoidable and unavoidable business “sustaining” activities
• Non-value adding activities
• Avoiding “slash and burn” approaches by focusing on the causal factors of waste rather than simply treating symptoms
• More advanced cost allocation techniques to gain a more realistic and transparent view of product, service and customer profitability
• Managing distribution channel costs
• Identifying products, services and customers that are strategically important and truly profitable (and dealing with those that aren’t)

Who will benefit?

Finance directors, financial controllers, finance analysts, management accountants, operational and commercial managers and change managers in all sectors

John McKenzie

6 CPD units

ACCA members can use this learning to meet their CPD requirements provided it is relevant to their career. If the event contributes to general knowledge and skills, it should be recorded as non-verifiable CPD. If the learning can be applied in the workplace, it will contribute to verifiable CPD.

1 hour of learning = 1 unit of CPD.

The webinar handout material will be available on the webinar platform when you log in to view the session.

If you wish to view or download handout materials, before starting the webinar, they will also be available through your document library on https://events.accaglobal.com

This event is organised by ACCA UK Continuous Learning Team.

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Fee: 275 GBP + VAT (£330) per delegate

Please note: If you're unable to attend the live webinar, a recording will be available on demand within 24 hours. You'll have access to the sessions for a full 12 months.