Resource Consumption Accounting
Welcome to the RCA Institute website, the comprehensive online source for information and services related to Resource Consumption Accounting (RCA). The RCA Institute’s primary objective is to establish a knowledgeable RCA community. RCA Institute members have access to content not available to the public including research and publication libraries. RCA Institute members also receive discounts on products and services the institute provides. Please feel free to contact us with any comments or questions you might have.
Associate membership in the RCA Institute is now free. All you need to do is register. You gain access to the Library, Bibliography, and Webcasts. This is a great way to start learning about RCA or add to your knowledge. The RCA Institute does not sell its membership list, and typically sends only 1 or 2 Emails per month notifying you of upcoming RCA Discussions or distributing the quarterly newsletter.
See the Institute Partners web page for Information on special RCA Institute discounts for the 2015 Manufacturing Enterprise Solutions Association's North American Conference.
Larry R White, Executive Director
RCA Discussion Series
The RCA Institute holds monthly discussion series for those interested in RCA, providing the opportunity to learn and ask questions. All levels of experience and interest are welcome. The sessions will be held on a web meeting at 11:30 AM (US Eastern Time).
The Discussions from the prior year are recorded and available on the Membership/Webcasts and Newsletters page.
2016 Discussion Series
January 8 Introduction to RCA (Recorded Webinar)
February 19 RCA in Practice: Applications and Cases (Presentation Slides)
March 18 Introduction to RCA Modeling – Part I (Presentation Slides)
April 15 Introduction to RCA Modeling – Part II (Recorded Webinar)
May 13 The RCA Implementation Process (Recorded Webinar)
June 10 Software Options for RCA (Recorded Webinar)
July 15 RCA and the Conceptual Framework for Managerial Costing
This RCA Institute discussion will introduce attendees to the Conceptual Framework for Managerial Costing developed by an Institute of Management Accountants (IMA) Task Force which was led by RCA Institute Executive Director, Larry White. The Conceptual Framework articulates the principles, concepts, and constraints for developing cost information based on the rigorous application of cause and effect operational relationships. The sole objective of the cost information is supporting internal decision making (as opposed to cost information for external financial reporting). Learn about the Conceptual Framework and how RCA applies it to better link operations and finance.
August 19 11:30 AM Capacity Information in RCA Models
Learn how Resource Consumption Accounting identifies and highlights opportunities for increased profitability through its focus on resource capacities. The job of operating managers is to create more capacity by becoming more efficient. Using capacity effectively and efficiently should be a primary objective for all managers. Yet many costing methods ignore or distort capacity analytics and costs.
Registration URL: https://attendee.gotowebinar.com/register/5632829230921395459
September 16 11:30 AM Identifying Avoidable Costs Using RCA
Management decisions around cost often hinge on determining if a cost is avoidable. Unfortunately, many costing methodologies, especially traditional cost accounting, either don’t provide the correct information or confuse the basic managerial costing concepts necessary to effectively identify and evaluate cost for avoidability. Learn RCA’s approach to thinking about avoidable costs. All levels of managerial costing and RCA knowledge are invited.
Registration URL: https://attendee.gotowebinar.com/register/7366048783452726019
October 14 11:30 AM Issues in RCA Modeling: Managerial Cost Objects
This webinar will discuss RCA’s approach to modeling several types of managerial objectives such as a product, service, internal or external project, work order, or supporting other internal resource pools. Gain an understanding of how RCA can model your organization’s goals and objectives to improve cost information for management decisions.
Registration URL: https://attendee.gotowebinar.com/register/940317013264759555
Nov 18 11:30 AM RCA: Linking Operations and Finance
Resource Consumption Accounting applies a variety of techniques to model operations to create superior cause and effect relationships, identify resource capacity relationships, and improve the linkage between operations and costs. The goal is to enable managers to make decisions to optimize their use of available and projected resources.
Registration URL: https://attendee.gotowebinar.com/register/7607022149843029251
Dec 9 11:30 AM What is “Truth” in Managerial Costing?
Determining “cost” can be very frustrating. Accountants calculate costs for financial reports, but use different cost calculations for other decisions. Sometimes the term “relevant” cost is used. Sometimes people seek the “true” cost...are other costs lies, are they irrelevant? The December RCA discussion will present a logical approach to sort out the clutter around “truth” as it applies to costing in organizations. You may find an answer or develop a new opinion.
Registration URL: https://attendee.gotowebinar.com/register/1557950077982257667
Article on International Federation of Accountants (IFAC) Knowledge Gateway
RCA Institute Executive Director, Larry White, and well known management accounting author, Gary Cokins, have co-authored an article for IFAC comparing German and US managerial costing approaches and providing some historical perspective for the differences. Please follow the link, read the article, and comment with your thoughts and opinions!!!!!!
RCA in Industrial Engineer Magazine
Larry White also wrote an article on Capacity Measurement and Costing at the invitation of Industrial Engineer's editor. The article explains the importance of creating capacity measurement and costing for use by operating managers. It discusses the principles H.L. Gantt employed to convince accountants to provide manager focused information in a world not yet dominated by external financial reporting. It extends Gantt's approaches into modern application using RCA. The article is titled: Back to the future with Gantt. (This article is provided with permission of the Institute of Industrial Engineers from the January 2015 issue of Industrial Engineer, Copyright 2015 Institute of Industrial Engineers. All rights reserved.)
Recent RCA Presentations
Recorded Presentation - Conceptual Framework for Managerial Costing, Part 1
Recorded Presentation - Conceptual Framework for Managerial Costing, Part 2
RCA Education by Webcast
The RCA Institute is producing a series of pre-recorded webcasts that will provide an introduction to Resource Consumption Accounting. Five introductory webcasts are now available, click on the links below. Institute members will be notified as additional podcasts become available. The topics are:
Part 1: What is Resource Consumption Accounting? (7 minutes)
Part 1.B: What is the Resource Consumption Accounting Institute? (7 minutes)
Part 2.A: Resource Consumption Accounting Modeling Principles, Part 1 (9 minutes)
Part 2.B: Resource Consumption Accounting Modeling Principles, Part 2 (10 minutes)
Part 3: Resource Consumption Accounting Overview (8 minutes)
RCA Rated in International Federation of Accountants Publication
In July 2009, Resource Consumption Accounting is recognized in the new International Federation of Accounting’s International Good Practice Guide: Evaluating and Improving Costing in Organizations, and in the companion piece to the IGPG, A Costing Levels Continuum Maturity Model, RCA was evaluated as the most sophisticated costing approach on the continuum.