Course Description

INTRODUCTION

Budget Preparation, Allocation & Cost Control training is essential for organizations and assists them in the decision making and planning process. This course provides participants with crucial cost awareness and budgetary skills by combining techniques analysis, problems and examples of real case studies, which is essential in managing and controlling processes / projects in times of increasing global competition where the budgets are inextricably linked with both strategy formulation and cost analysis.

Objectives

Participants attending this training course will:

Successfully build integrated planning, budgeting and reporting process

Understand costs behavior more accurately

Deliver more timely and useful information to decision-makers

Understand capital budgeting

Identify & manage key financial indicators for the business

Be able to use specific cost analysis and performance measurement techniques

Be prepared to understand and implement the Balanced Scorecards

Be prepared to interpret the financial impact of strategic directions

Understand the problems of overheads allocation and how Activity-Based Analysis may aid decision-making and pricing strategies

Select the performance measurement systems that work

Think proactively beyond budgeting

The benefit of this course

Developing their ability to think strategically and prepare successful financial plans and budgets consistent with the organisation requirements

Comparing fixed and variable costs, direct and indirect costs, and the use of contribution accounting and Cost/Volume/Profit (CVP) analysis

Applying traditional and Activity-Based Costing (ABC) methods and allocation of overhead costs for planning, budget setting and budgetary control

Thinking strategically to improve their understanding of the annual budget setting process and its links with the organisation's longer-term plans

Choosing appropriate approach to costing for more accurate planning and budgeting to enhance the actual performance

Improved forecasting and budgeting resulting in more efficient use of resources and value-adding opportunities

Applying effective budgetary control using flexed budgets and variance analysis, the balanced scorecard, and identifying ways the organisation's budget process may be improved

Course Outline

DAY 1

Budgeting & Cost Control in the Management System: Link with Strategic Planning

Budgeting and the Management System of Contemporary Organizations

Strategic Planning, Budgeting and Management Control

Strategic Management Accounting – Setting Goal and Objectives

From Strategic to Operating Plans – Actions and Initiatives

Measuring and Managing the Performance – KPIs and targets

Managerial Accountability 

DAY 2

Budgeting: Principles and Key Concepts

Understanding the Context for Budgeting

The Benefit of Budgeting and its Role for Achieving Organizational Targets

The Shortcomings of the Budgeting Process - How to improve them?

Principles of Budgeting

Main Issues with Budget Preparation

Capex (Capital Expenditures) vs. Opex (Operational Expenditures)

DAY 3

Cost Analysis for Budgetary Purposes

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

DAY 4

Traditional vs. Advanced Techniques in Cost-Control

Under-costing and Over-costing: Understand Allocation Methods

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)

DAY 5

New Integrated Performance Measurement Systems

Beyond Budgeting: Integrating Financial and Pre-financial Information

The Drivers of Value Creation

The Balanced Scorecard

Strategy Maps

Integrated Reporting