Effective Budgeting & Operational Cost Control

Introduction:

The effective management of budgeting and cost control is crucial for project/process-based organizations. Nowadays, if contemporary organizations want to stay competitive, they are urged to think in terms of process-value added to customers/shareholders. Along this line, budgeting, as well as tracking, controlling & reducing cost represent essential activities to be performed and monitored by organizations as they implement their key processes, activities, and operations. In addressing these issues, this course is relevant for those professionals & analysts facing the difficult challenge of improving performance while reducing the costs of those processes for which there are accountable. By combining techniques analysis, problems and examples with real case studies the course provides delegates with key cost awareness and budgetary skills, which is essential to managing and controlling processes/projects in times of increasing global competition where the budgets are inextricably linked with both strategy formulation and cost analysis.

Targeted Groups:

Financial Planning and Control Staff
Executives with Financial Responsibilities
Executives who are responsible for the cost and strategic analysis
Project Managers
Employees who want to gain new knowledge to improve their career

Course Objectives:

At the end of this course the participants will be able to:

Integrate the organization's strategic planning with budgets and processes of cost control
Understand the importance of project management, appraisal, planning
Explore traditional versus innovative budgetary techniques
Get to know activity-based budgeting (and costing)
Explore capital budgeting techniques & cash flows
Identify key financial indicators for the business, and how and when to monitor them
Discuss the problems and limitations of budgetary control and look for alternative tools
Understand the importance of balancing financial and non-financial measure in managing projects
Interpret budgets and performance measurement as communication tools
Link budgetary processes with quality issues and business process improvement
Gain project management abilities
Integrating planning, budgeting and cost control by relying on a financial-based language
Manage different types of cost and their relevance to decision making
Understand the problems of overheads and how Activity-Based Analysis may aid decision-making and pricing strategies
Select the performance measurement system that works
Look beyond budgeting: balanced scorecard and six-sigma
Contribute to implement change in the organization.

Targeted Competencies:

Master techniques for costing & budgetary analysis
Be able to identify the right processes to redesign in terms of added-value
Confidently contribute to business process improvement
Permits testing of the financial impact of strategic direction

Course Content:

Unit 1: Building a Common Financial Language:

The key role of budgeting and cost control in contemporary organizations
The 21st-century business imperative: delivering value-added (but to whom?)
Towards a cross-functional process-view of the organization
Financial VS Managerial accounting (for decision making)
Understand your processes: integrating financial and non-financial aspects
Identify the key processes/projects for your organization

Unit 2: Budgeting and Cost Analysis:

Cost concepts and terminology
Different costs for different purposes
Fixed VS Variable costs: the Cost-Volume-Profit analysis model
Contribution Margin analysis
Manufacturing VS non-manufacturing costs
Period VS Product costs: inventory evaluation and control

Unit 3: Traditional VS Advanced Techniques in Cost-Control:

Under-costing and over-costing: the consequences for profitability
How to refine a costing system?
Indirect (OH) VS Direct costs: Traditional Cost Allocations systems VS Activity-Based Costing (ABC)
Cost hierarchy & Cost drivers
Linking resources, activities and management
Introducing Activity-Based Budgeting (ABB) and Management (ABM)

Unit 4: Master Budget, Flexible Budgets, and Variance Analysis:

Define the master budget and explain its major benefits to an organization
Describe the difference between a static budget and a flexible budget
Compute flexible-budget variances and sales-volume variances
Discuss the behavioral implication of budgeting
The budgeting process in your organization: how to improve it?
Which tools shall we use to complement budgeting and costing?

Unit 5: Beyond The Budgets: Balanced Scorecards and Six-Sigma:

Broadening performance measurement systems
The key role of customer satisfaction and business process reengineering
Beyond budgeting: integrating financial and non-financial issues
Introducing the Balanced Scorecard
Introducing the Strategy maps
Introducing Six-sigma

Finance and Accounting Courses

Effective Budgeting & Operational Cost Control

Introduction:

Targeted Groups:

Course Objectives:

Targeted Competencies:

Course Content:

Unit 1: Building a Common Financial Language:

Unit 2: Budgeting and Cost Analysis:

Unit 3: Traditional VS Advanced Techniques in Cost-Control:

Unit 4: Master Budget, Flexible Budgets, and Variance Analysis:

Unit 5: Beyond The Budgets: Balanced Scorecards and Six-Sigma:

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