Activity Based Cost Modeling

Authored by Douglas T. Hicks and sponsored by 3C Software

About This Course

Activity-Based Cost Modeling provides a practical and conceptual foundation for building accurate and decision-ready cost models. This course is designed for professionals seeking to move beyond traditional cost accounting methods and adopt more effective managerial costing practices rooted in operational reality. Through real-world examples and a focus on causality, you’ll gain the knowledge needed to model costs in a way that better supports strategic business decisions.

What You’ll Learn

By the end of this course, you will:

  • Understand the critical difference between Cost Accounting and Managerial Costing
  • Learn why traditional, direct labor-based cost models are no longer effective
  • Explore why Causality is the cornerstone of accurate and meaningful cost modeling
  • Discover a Conceptual Framework for building a cost model for a manufacturing firm
  • Understand the equal importance of Customer Costing and Product Costing
  • Learn how to use Causality to both predict costs and assign them to processes, products, and customers
  • Recognize how traditional, historical financial costs must be transformed into future, economic costs to support decision making
  • Apply causality-based modeling to address unique or complex costing situations

 


Course Fees & Registration

SPCEA Members: $75.00 USD | Non-Members: $90.00 USD

Course Registration Form

Complete the registration form to gain access to course content.  During registration, you’ll be prompted to create an SPCEA Portal account if you don’t already have one.

If you’ve already purchased this course, log in to your SPCEA Portal account to access the lessons. You can view all of your enrolled courses from your My Courses page.

 


Getting Started

From the Table of Contents below, click into each section to view a lesson or complete a quiz. Work through the course at your own pace and revisit sections as needed. NOTE: You must be logged in to access course content. 

Part 1: Background and Key Concepts
Background and Key Concepts
Quiz
Part 2: Conceptual framework for a manufacturer’s cost model
Conceptual framework for a manufacturer’s cost model
Quiz
Part 3: Distributing costs and developing rates
Distributing costs and developing rates
Quiz
Part 4: A cost modeling toolbox
A cost modeling toolbox
Quiz
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