Budgeting and Cost Control

This program has been designed to give business decision makers a good understanding on budgets, cost controls, variances and associated analysis that will lead to better decisions being made in order to control costs.

Categories

Finance & Banking

Overview

In making financial business decisions, the decision maker needs to understand the fundamentals of budgeting and costing. This program has been designed to give business decision makers a good understanding on budgets, cost controls, variances and associated analysis that will lead to better decisions being made in order to control costs.

Program Objectives

Upon completion of the program the participants should be able to:

  • Understand the budgeting process
  • Understand budgeting and costing terminology
  • Be in a position to devise their own budget and control system
  • Be aware of non-budget tools such as Balance Scorecards

Outline

  • 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 financial plan
    • Using Porter’s 5 Forces, SWOT and PESTLE
    • Aligning budgeting to the Organization’s strategy
  • 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
    • Backflush Accounting
    • Throughput Accounting
    • Target Costing
  • Costing: From traditional to Activity-Based
    • Different types of costs
    • Cost centres
    • Full costing
    • Absorption costing
    • Marginal costing
    • Standard costing
    • Break even analysis
    • Activity-based approaches
    • Variance analysis
    • Direct product profitability
  • Budgets and Variance Analysis
    • What is budgeting?
    • Planning, co-ordination 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
  • Capital Budgeting and Investment Appraisal
    • The time value of money
    • Investment Appraisal Techniques:
    • Net Present Value (NPV)
    • Internal Rate of Return (IRR)
    • Payback Period

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