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Course Code
FANT-026
Petrochemical Product Costing & Profitability Analysis
- The course designed to equip professionals with the tools and methods to analyze, manage, and optimize costs in petrochemical operations. Participants will explore cost components, compare traditional and activity-based costing, and apply advanced technologies for cost allocation.
- This training course will focus on energy, chemicals, and petrochemicals. The petrochemical industry faces increasing pressure to manage costs, optimize processes, and enhance profitability amidst fluctuating raw material prices and market demand.
- This training course will equip participants with the tools and techniques to effectively analyze product costing and profitability, allowing organizations to identify cost drivers, allocate resources efficiently, and make strategic pricing decisions. With a focus on cost structures, margin analysis, and performance measurement.
Learning Outcomes
- Operational structure & market dynamics of Petrochemical industry
- Fundamentals of product costing for Petrochemical products
- Cost allocation methods for multi-stage production process
- Compare traditional and activity-based costing methods to determine their suitability for multi-stage petrochemical production processes
- Products Profitability Analysis techniques and key financial metrics relevant to Petrochemical
- Pricing strategies for operational efficiency and market competitiveness
- Understand the unique cost structures involved in petrochemical product manufacturing
- Identify and classify the direct and indirect costs associated with petrochemical products
- Apply advanced cost allocation methods, including activity-based costing (ABC), to petrochemical products
- Conduct profitability analysis for petrochemical products and identify profit drivers
- Use financial metrics and key performance indicators (KPIs) to measure product performance and profitability
- Implement cost control measures to optimize profit margins
- Analyze the impact of price fluctuations, raw material costs, and market conditions on product profitability
- Understand and apply financial models for product costing and pricing decisions in the petrochemical industry
- Implement cost management strategies to enhance long-term profitability in petrochemical operations
Upon completion of this training course, participants will be able to:
Course Contents
- Overview of the petrochemical industry: Key operations, challenges, and cost structures.
- Types of costs in petrochemical products: Direct vs. indirect costs
- Basic product costing techniques: Job order costing vs. process costing
- Overview of profitability analysis and its importance in the petrochemical industry
- Introduction to advanced cost allocation methods
- Understanding Activity-Based Costing (ABC) and its application in petrochemical industries
- Allocating costs for multi-stage production processes in petrochemical plants
- Overhead allocation and cost drivers in petrochemical manufacturing
- The importance of accurate cost allocation for decision-making
- Exploring AI tools for cost allocation and driver analysis
- Conducting product profitability analysis: Identifying key profitability drivers in petrochemical products
- Contribution margin analysis and its application in the petrochemical industry
- Key financial metrics and KPIs for petrochemical profitability: Gross margin, operating margin, ROA, and ROI
- Break-even analysis and margin of safety in product costing
- Examining factors influencing margin fluctuations in petrochemical operations
- Cost management techniques: Target costing, lifecycle costing, and value engineering
- Implementing cost control measures to optimize margins in petrochemical production
- Dynamic pricing and pricing models based on market conditions and raw material costs
- Cost reduction initiatives and performance measurement systems
- Examining the relationship between costs and pricing strategies
- Aligning costing and profitability analysis with business strategy and long-term goals
- Developing forecasting models for product costing and profitability in petrochemical operations
- Understanding the impact of market fluctuations on product profitability and financial performance
- Examining cost and pricing risk factors in petrochemical operations
Introduction to Petrochemical Product Costing and Profitability
Advanced Cost Allocation and Activity-Based Costing
Profitability Analysis and Financial Metrics
Cost Management and Pricing Strategies
Integrating Costing and Profitability Analysis into Business Strategy
Our Methodology
- Make coaching and monitoring innovative and using modern
- Media training also using on the go training by using interactive means and focusing on
- The exercises, practical applications and real situations study
- Live delivery method, instructor-led training
- Experienced consultant, trainers, and professional
- Qualified trainer with high-level experience
Attendance Reports
- Send daily attendance reports to training departments
- Send full attendance report to training dep. by the end of the course
- Attend 100 % from the course days also provide daily
- Issue attendance certificate for participant who attend minimum 80% from the course duration
Pre/Post Reports
- Pre- assessment before starting training
- Post assessment after finishing training
- Full report for the difference between Pre-& Post assessment
Who Should Attend
- Financial & Pricing Analysts
- Finance Managers and Controllers
- Cost Accountants
- Product Line Managers
- Operations Managers
- Internal Auditors and Compliance Officers
- Anyone involved in managing or analyzing costs and profitability
