Duration-Based Costing as a Practical Alternative Method for Profitability Analysis

When:  Sep 21, 2021 from 06:30 PM to 08:00 PM (CT)
Associated with  Houston Chapter
Join us on Tuesday, September 21 at 6:30 pm for our September virtual chapter meeting.  

Our meeting topic is "Duration-Based Costing as a Practical Alternative Method for Profitability Analysis" presented by Fernando Hernández Pico, Customer Service Director, MyABCM USA and Anne-Marie Teresa Lelkes, Associate Professor of Accounting, Texas A&M University - Kingsville.  

CPE Credits: 1.5
Prerequisites: None
Advanced Preparation: None   
Course Level: Basic
Field of Study: Accounting      
Course Delivery: Group Internet

Here is the link to register: https://event.on24.com/wcc/r/3402524/878FF7191F122AF5F01012C961C4D451

Registration is mandatory to participate. 
To ensure accurate CPE reporting, please provide your correct IMA member number as listed in your IMA membership profile. Your first and last name should also be as per your IMA profile. If any details are incorrect this could delay your CPE credits being reported to your transcript and error with your certificate of attendance.

Non-IMA members, put "N/A" in Member number field. 

Learning objectives:

After attending this session, attendees will understand that:

  1. Duration-Based Costing is posing as a challenger for Activity-Based Costing due its simplicity, speed to deliver, and low-cost maintenance and update.
  1. Compared with ABC, DBC assigns cost based on duration-based drivers, which encompasses the concept of time is money. The more efficient the production processes, the less money is wasted.
  1. The production cycle time is not the same as machine hours or direct labor hours of the traditional costing systems. The production cycle time is the time it takes to produce a product from when materials are requisitioned until the product is fully completed.


ABC delivers accurate cost information tied to the cause-and-effect principle. Though it delivers high-value information, it is time-consuming to build and very complex to maintain and update. Duration-Based Costing (DBC) is a new method to allocate overhead costs based on the production cycle time and follows the concept that "time is money." DBC can provide similar costing estimates to those of an ABC model that uses time drivers. DBC is an interesting approach toward costs and profitability and is much easier to model and to maintain.


 Speakers Bios: 

Fernando Hernández Pico
: Public Accountant, MBA Corporate Finance. +20 years of experience working with analytical and performance management platforms for large banks, manufacturing firms, and government institutions. Currently customer service director at MyABCM USA - Asher & Company (BDO Digital) and member of the IMA. Among his main contributions to his clients is the transformation of the financial function through a business-oriented approach.


Anne-Marie Teresa Lelkes
, PhD, CPA (Texas & Oklahoma), CMA, is an Associate Professor of Accounting at Texas A&M University – Kingsville. She earned both her M.S. and Ph.D. in Accounting from Oklahoma State University (dissertation entitled Simplifying Activity-Based Costing, 2009). From her doctoral dissertation, she has several publications concerning her costing models called Duration-Based Costing and Modified Duration-Based Costing. Additionally, Dr. Lelkes is a Gold Medal Winner in the State of Oklahoma for the highest scores in the July/August 2010 window for the CPA exam. In the January/February 2021 window, she passed the CMA exam in one sitting. She is a member of the Institute of Management Accountants and an active member in the Texas Society of CPAs (Corpus Christi Chapter). She also received the Outstanding Accounting Educator Award in 2017 from the Texas Society of CPAs, Young CPA of the Year award for 2017 - 2018 from the Corpus Christi Chapter of the Texas Society of CPAs, and The Rising Star Award in 2020 from the Texas Society of CPAs.





Houston Chapter