IFAC Costing Methods Continuum Levels of Maturity 2015

IFAC Costing Methods Continuum Levels of Maturity Instructor: Gary Cokins Product ID: 500965 Description Gary Cokins developed a Costing Continuum Levels of Maturity Model for the International Federation of Accountants (www.ifac.org). The model creates a progressive "stages of maturity framework" for self-auditing purposes. IFAC is the global accounting organization with 180+ member professional accounting institutes. Financial accounting is regulated with GAAP and audited. In contrast, managerial accounting is not and there are no compulsory rules. Management accounting practices range from primitive to sophisticated considering accuracy, scope (completeness), detail, and utility. How does senior management assess what level of sophistication their managerial accounting system is at? How can the accountants judge where their managerial accounting’s practices stand, and whether advancing to an improved level is worth the extra effort? Areas Covered External financial accounting for regulatory compliance Internal management accounting for decision making support The causality principle for calculating costs Standard costing versus activity-based costing Measuring and managing customer profitability Driver-based budgeting and rolling financial forecasts Applying analytics to management accounting The IFAC "Costing Stages of Maturity Framework" Why Should you Attend To be able to assess what level of maturity an organization’s management accounting practices and systems are at. Objectives of the Presentation Recognize how trends in management accounting practices have expanded accountants from "bean counters" to "bean growers" Explain the differences between external financial accounting and internal managerial accounting Review the "causality principle" for calculating costs of products, channels, and customers Understand various co-existing methods of management accounting Appreciate "predictive accounting" for driver-based budgets / rolling financial forecasts