PROGRAM DETAILS

Introduction

 Organizations need to respond and adapt to changes in their operating environment. In this programme delegates will learn how to:

• Define the relationship between strategic change, style of budget use, cost monitoring and performance.
• Design mechanisms and processes used by their organizations to respond and adapt to changes in their operating environment.
• Make a budget and capture the information needed to make intelligent operating decisions.

Learning Objectives

 Participants attending the programme will:

• Understand how the budget relates to the key financial statements: balance sheet, income statement, and cash flows.
• Learn how to prepare a budget consistent with the organization strategic plan
• Know how to use appropriate estimation techniques in the development of revenue and expense budgets
• Be able to identify all the appropriate costs to be included in a capital expenditure proposal
• Learn how to analyze management cost reports and take corrective action

Target Audience

• Accountants, accounting professionals, cost accountants
• Cost and budget analysts
• All staff with budget responsibilities
• All staff with responsibilities to monitor costs

Training Methodology 

The program will be interactive and practical. “Classwork” and exercises will be mainly in groups. Hand-outs relevant to the subject matter will be distributed and discussed. 

Program Content

 DAY 1– Introduction to Budgeting         

• Principles of Budgeting and Cost Control
• Budgeting and management control systems
• Types of Budgets
• Understanding the context for budgeting
• The Budget and its role for achieving organizational targets
• What is it the situation in your organization? How to improve it?

 DAY 2 – Costing for Budgeting       

• Costing for budgeting: key terms and concepts
• Inventoriable vs. period costs
• Manufacturing vs. non-manufacturing costs
• Variable vs. Fixed costs
• Direct vs. Indirect Costs
• Cost allocation – Traditional costing and activity-based costing (ABC)

 DAY 3 – Costing for Budgeting (cont’d) 

• From traditional budgeting to Activity-based budgeting (ABB)
• Budgeting and Costing Techniques
• Approaches to Budgeting
• 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
• Compute the price and efficiency variances for direct-cost categories
• Explain why standard costs are often used in variance analysis
• Integrate continuous improvement into variance analysis

DAY 4 – Types of Budgets

• Cost Control and Management Budget report
• Project Budgeting
• Capital Budgeting
• Capital Expenditure Budgeting and Analysis
• Discounted Cash Flow Models

Day 5 – The Scope of Budgeting

• Interpreting budgetary information in light of Value Creation
• What is the scope of budgeting? How far should it extend beyond cost budgeting?
• The budgets and performance measurement as tools for communications
• Budgets and issues of motivation
• Integrating financial and non-financial issues