Welcome to the Resource Consumption Accounting Institute
A Few Words About 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.
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 12:00 PM (US Eastern Time) with a 15-20 minute presentation followed by discussion and questions.
The RCA Discussion series is also available on the Resource Consumption Accounting YouTube channel.
January 15: Improving Profit Margin Analytics with RCA: Demonstrating a Quote and Margin
Price Calculator (View Recorded Webinar)
February 5: Introduction to RCA (View Recorded Webinar)
March 5: Introduction to RCA Modeling – Part I (View Recorded Webinar)
April 2: Introduction to RCA Modeling – Part II (View Recorded Webinar)
May 7: The RCA Implementation Process (View Recorded Webinar)
June 11: RCA In Practice (View Recorded Webinar)
July 9 Software Options for RCA (View Recorded Webinar)
Aug 13 RCA and the IMA Conceptual Framework for Managerial Costing (View Recorded Webinar)
Sept 10 RCA-based Product Cost Estimation Engine (View Recorded Webinar)
Oct 15 Identifying Avoidable Costs Using RCA (View Recorded Webinar)
Nov 12 How RCA Models Enhance Capacity Information (View Recorded Webinar)
Dec 10 What is “Truth” in Managerial Costing? (View Recorded Webinar)
2022 Discussion Series
January 14 The Importance of Causality to Internal Decision Support (View Recorded Webinar)
The principle of causality was identified by the IMA Conceptual Framework for Managerial Costing as the foundational principle for operational and cost modeling for internal decision support. This discussion will discuss the meaning of causality in modeling, its importance, and how RCA models causality to improve decision making.
February 11 Introduction to RCA
This discussion will introduce new attendees and review with longer term members the foundations of RCA and how it can improve information on cost and profitability. It will focus on the central role of resources, capacity, causal relationships, and responsiveness play in improving decisions. Begin the process of understanding how RCA connects operations to finance and provides the information to optimize your organization’s profitability or mission outcomes.
March 4 Introduction to RCA Modeling – Part I
This discussion introduces Resource Consumption Accounting modeling techniques that improve operational, cost, and profit performance. Learn how RCA models operational resource quantities and monetary values to produce superior information on capacity use, consumption of resources, and information on costs and quantities for marginal and incremental decisions.
April 15 Introduction to RCA Modeling – Part II
The discussion will illustrate the calculation methodology for Resource Consumption Accounting models. It will present an example that shows how a factory floor and supporting activities are modeled and transformed into actionable management information using RCA. This discussion will highlight the clear causal relationship between operational and financial information when RCA is used to develop cost information.
RCA Institute/MESA (Manufacturing Enterprise Solutions Association) Analytics Working Group Discussions
The MESA Analytics Working Group and RCA Institute are recording discussion on manufacturing analytics and SMART manufacturing topics each month. These discussions present work group member thinking on the topic; but more importantly, they get you thinking. Discussions are posted on the RCA Institute YouTube Channel.
Current topics are:
RCA Institute Special Report: Evaluation of Technology Business Management Council's Cost Modeling Guidance
The RCA Institute has completed a review of the TBM Council's Taxonomy that serves as the basis for building cost models of IT functions in organizations. The review was based on the Institute of Management Accountants Statement on Management Accounting: Costing System Attributes that Support Good Decision Making. The review finds the TBM Taxonomy provides a framework that can improve cost information to some extent, but falls short in its claims about consumption, performance, and optimization because it does not provide enough guidance to ensure it's cost model is built on a solid operational foundation of causality based on resources, processes, and capacity.
Watch an interesting discussion on TBM Council's approach to modeling IT resources and costs to make them more visible and manageable throughout the organization. RCA expert Anton van der Merwe, Alta Via Consulting, and TBM author, Todd Tucker discuss a wide range of IT management and cost modeling issues. https://lnkd.in/eiftDhm6
RCA Related Presentation: Driving Strategic Management with the Profitability Analytics Framework
RCA Institute Executive Director Larry White and Doug Hicks presented this webinar for IMA on March 29, 2021. It presents the IMA Statement on Management Accounting: Profitability Analytics Framework that focuses on improving internal decision support throughout the organization. It also includes a number of practical applications from the presenter's experience. Note: The link takes you to an IMA form. It will ask for an IMA member number, but any 5 digit numeric code seems to work. It would be polite to fill out the rest of the information correctly to show IMA your interest.
RCA Related Article: AI for Decision Analysis
The February 2021cover article for Strategic Finance (official publication of the Institute of Management Accountants was written by RCA Institute Chair, Anton van der Merwe of Alta Via Consulting (altavia.com), and RCA Institute Executive Director, Larry White. It present an RCA oriented approach to creating monetary decision support information in an Industry 4.0 data rich environment. The article includes examples of RCA applications.
RCA Related 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 on the RCA Institute You Tube Channel. The topics are:
Part 1: What is Resource Consumption Accounting? (7 minutes)
Part 3: Resource Consumption Accounting Overview (8 minutes)
The Institute of Management Accountant's Conceptual Framework for Managerial Costing
In September 2014, the IMA published its Conceptual Framework for Managerial Costing (CFMC) that established clear principles, concepts, and constraints for creating cost information purely for internal decision support. RCA is the most comprehensive approach to implementing the CFMC. In July 2019, a follow on Statement of Management Accounting, Costing System Attributes that Support Good Decision Making, provides practical guidance on applying the principle of causality and the concepts for building effective cost models for internal decision support. The SMA Developing an Effective Managerial Costing Model provides a process to create cost information for internal decision support. These documents are aligned with the RCA approach to modeling and internal decision support information.