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Finance and Accounting Courses

Budgeting & Cost Control




Introduction:

All business decision-making involves analyzing situations containing varying degrees of risk. This program uncovers the essential skills required to understand the processes of budgeting and cost control for better decision-making. From understanding the importance of a well-defined budget process through to the importance of how costs behave so that realistic cost-cutting and budgeting plans can be produced.

Targeted Groups:

  • Financial Professional
  • R&D Professional
  • General Accounting Professional
  • Business Unit Professional
  • Anyone who wants to refine and advance their budgeting and costing knowledge
  • The staff person who will be responsible for entering data into the budget system or training others how to enter information
  • Those who want to gain control of the firm's financial standing and obtain a firm grasp on the numbers side of their job

Course Objectives:

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

  • Identify the principal factors required to produce a successful business case
  • Develop budgeting and financial skills required for better decision-making
  • Identify sources of financial and business data to support the budgeting process
  • Learn new techniques and methodologies to simulate typical business scenarios
  • Understand the importance of a well-defined budget process
  • Learn costing and budgeting terminology used in business
  • Master techniques for cost-benefit analysis
  • Learn how to construct profit, cash and balance sheet plans and budgets
  • Learn how to evaluate variances from plan and identify corrective actions
  • Understand discounted cash flow (DCF) techniques and their application to financial decision making
  • Build and use budgets relevant to your organization

Targeted Competencies:

  • Interpreting financial statements
  • Planning and budgeting
  • Cost control
  • Capital budgeting
  • Applying cost-volume-profit analysis
  • Utilizing breakeven analysis

Course Content:

Unit 1: The Need for Financial Control in Business: 

  • Understanding accounting
  • Management accounting versus financial accounting
  • The relationship between business management and financial management
  • How budgeting fits into the bigger picture
  • How cost management improves an organization’s financial position
  • Key aspects of managing working capital

Unit 2: Capital Budgeting and Investment Appraisal: 

  • The time value of money
  • Understanding Appraisal Techniques - Net Present Value (NPV), Internal Rate of Return (IRR) and Payback period
  • Selecting an appraisal technique
  • The use of Sensitivity analysis in evaluating projects
  • Strategic considerations in assessing capital projects
  • Creating an effective Capital Budgeting framework

Unit 3: Cost Analysis and Management: 

  • Understanding cost structure and behavior
  • Costs as a relationship to outputs – cost/volume/price relationship
  • The concept of contribution margin
  • Break-even analysis for planning and control
  • Cost allocation and apportionment
  • Benefit-cost analysis

Unit 4: Full Costing, Marginal Costing, and Activity-Based Costing: 

  • Comparing full and marginal costing
  • Direct and indirect costs in budgeting for decision making
  • Role of costs in pricing strategies
  • Activity-Based Costing (ABC)
  • Managing cost control

Unit 5: Budget Construction and Control: 

  • Nature and purpose of budgets for planning and control
  • Types of budgets and budgeting
  • Creating Key Performance Indicators for financial and non-financial performance
  • Building a budget
  • Budgetary control and variance analysis
  • Budgeting for non-financial measures -introducing the Balanced Scorecard