Cost Analysis and Cost Reduction
Lack of cost competitiveness is considered by enterprise managers as the most important impediment to growth of their companies, and consequently, one of their top priority technical assistance needs. This course was developed specifically to help business consultants address the cost competitiveness and profitability problems of SME-s.

The course materials are based on managerial cost analysis methods that are in wide use internationally by enterprises and industry consultants.

A new instruction module, Environmental Managerial Accounting (EMA), has been introduced This module focuses on analysis and control of costs related to management and reuse of waste products from the manufacturing process, which has become an increasingly important factor in manufacturing cost. This module provides a basic understanding of international EMA concepts, terminologies, and methodologies, and teaches how to identify and calculate key environmental costs.

Course Description
Topics:

• understanding cost reduction and the need for more systematic cost reduction approach
• Process map - overview of cost reduction assignment
• Planning and structuring an assignment - negotiating and planning the assignment, conducting planning sessions with management, developing work plan and collecting data
• Financial ratio analysis - understanding financial ratios and using the financial diagnostic map
• Product cost analysis - cost categorization, CVP analysis - understanding the difference between fixed and variable costs and direct and indirect costs
• Product cost analysis - understand overhead allocation methods
• Product portfolio analysis - deciding which products to produce
• Restructuring strategy - setting targets - structuring and presenting CR strategy
• Overview of CR model - construction of CR model and use of CR model, data entry and scenario testing
• Reducing fixed costs and variable costs - identify specific cost reduction initiatives to achieve targets
• Implementation of CR initiatives - preparing action plan; designing CR experiments
• EMA - understand basic international EMA concepts, terminologies and methodologies