Effective Budgeting And Cost Control

The Effective Budgeting & Cost Control training course is designed to clarify technical budgeting terms. The course clearly defines and explains in details the methodology used and covers both traditional & non-traditional budgeting methods through to newer methods and approaches.

Effective Budgeting & Cost Control

The Effective Budgeting & Cost Control training course is designed to clarify technical budgeting terms. The course clearly defines and explains in details the methodology used and covers both traditional & non-traditional budgeting methods through to newer methods and approaches.

 

For business decision makers, to make better business decisions, they need to understand the fundamentals of budgeting and costing. This training course has been devised to give business decision makers a good understanding on budgets, cost controls, variances and associated analysis that will lead to better decisions being made & better results being attained.

Course Objectives

  • Understand the budgeting process
  • Learn the range of budgeting options
  • Understand both budgeting and costing terminology
  • Calculate more effective budgets
  • Utilize improved costing methods
  • Be in a position to devise their own budget and control system
  • Be aware of non-budget tools such as Balance Scorecards

Audience

  • All personnel involved in preparation of budgets
  • Budget supervisors
  • Operational managers
  • Productions managers
  • Financial managers
  • Others who provide and enter information
  • Anyone else who wants to understand budgets and costing within their business

Course Content

 Strategic and Financial Planning

    • What comes before the financial numbers?
    • Differences between Financial and Management accounting
    • Changing Competitive Environment
    • How strategy links to budgeting and costing
    • The need for the strategic plan
    • Mission, Vision, Goals
    • Using Porters 5 Forces, SWOT and PESTLE
    • Aligning budgeting to the Organizations strategy Case studies and exercises

 Factors Affecting Budgeting and Cost Control

    • The Product Lifecycle
    • Focus on customer satisfaction
    • The Value Chain
    • World Class Manufacturing
    • Just In Time (JIT)
    • Quality Management Systems
    • Theory of Constraints
    • Throughput Accounting
    • Target Costing Case studies and exercises

  Costing: From Traditional to Activity-Based

    • Different types of costs
    • Cost centers
    • Full costing
    • Absorption costing
    • Marginal costing
    • Standard Costing
    • Break-even analysis
    • Activity-based approaches
    • Variance analysis
    • Direct product profitability Case studies and exercises

 Budgets and Variance Analysis

    • What is budgeting?
    • Planning, coordination and communication
    • Types of Budget: Short, long, fixed, rolling, incremental, zero-based (ZBB), Kaizen
    • The Master Budget
    • Operating Budget
    • Financial Budget
    • Cash Budget
    • The Human side of budgeting
    • Sensitivity Analysis Case studies and exercises

  Capital Budgeting and Investment Appraisal

    • The time value of money
    • Investment Appraisal Techniques:
      • Net Present Value (NPV)
      • Internal Rate of Return (IRR)
      • Payback Period
    • Exercises and case studies
    • Beyond Pure Financial Budgeting
      • Balance Scorecard
      • Six Sigma

Budgets and issues of motivation Case studies and exercises

JOIN AN UPCOMING CLASS FOR THIS COURSE