PROGRAM SCHEDULE
Ref No: FI 107 Program Name: Advanced Budgeting and Operational Cost Control
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