Budgeting and Cost Control
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Budgeting and Cost Control Course
Introduction:
The effective management of budgeting and cost control is crucial for contemporary organizations. Nowadays, if companies want to stay competitive, they are urged to think in terms of process value added to customers/shareholders. It is essential value is increased for the stakeholder while the organization controls its business processes and budget. This has led to an amplified focus on budget management, operational cost control, and tracking critical business processes.
This program has been developed for professionals who are responsible for improving the performance of a team or department while simultaneously reducing costs where necessary.
Through the use of a combination of technical analysis, problem-solving, and case studies this course will provide the delegate with the latest innovations in essential budgetary and cost awareness analysis that would stand up to the most rigorous of external scrutiny.
Course Objectives:
At the end of this Budgeting and Cost Control Course, you will able to:
- Understand the peaks and troughs of income and expenditure
- 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 the plan and identify corrective actions
- Cover the different types of cost
- Evaluate the differences between traditional and innovative budget analysis
- Understand Activity Based Budgeting
- Capital Budgeting Techniques and Cash Flow
- Understand the key financial indicators and how to monitor them accordingly
- The role of project management within cost control
- Evaluate the connection between budget processes and business improvement
Who Should Attend?
This Budgeting and Cost Control Course is ideal for:
- Those in charge of designing and managing a budgetary system
- 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
- Financial professionals, R&D professionals, sales/marketing professionals, general accounting professionals, business unit professionals
- Anyone who wants to understand the basics of budgeting, costing, and performance measurement
Course Outlines:
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
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
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
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
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 nonfinancial performance
- Building a budget
- Budgetary control and variance analysis
- Budgeting for non-financial measures -introducing the Balanced Scorecard
