Budgeting and Cost Control are fundamental for contemporary organizations. The Budgets are inextricably linked with both strategy formulation and execution. But accurate Budgets depend on Cost Control and analysis. It is essential to understand how costs behave so that realistic plans can be produced, and appropriate financial and non-financial resources can be made available to the business. Management Control builds on the budgets to understand variances and take necessary corrective actions. This course will allow the participant to master the traditional tools of budgeting and control as well as new dynamic approaches, which reflect and respond to the current complex business environment.
- Financial Planning and Control Staff
- Those with Direct or Indirect Financial Responsibilities
- Those from Every Business Discipline and Department who must Run Departments and Budgetary Plans, and who are Responsible for Cost and Strategic Analysis
- Those from all Sectors of Industry, Irrespective of Functional Responsibilities, but Particularly those Involved in Manufacturing, Production, Engineering or Sales
- Those Working in a Project Management Environment
To enhance the participants’ knowledge, skills, and abilities necessary to master the most widely used internal tools for planning and monitoring activities and sustaining performance over time.
By the end of this course, participants will be able to:
- Understand the role of budgets within organizations
- Understand costs behaviour and manage costs more effectively
- Build an integrated planning, budgeting and reporting process
- Master traditional and innovative approaches to budgeting and cost control
- Select the performance measurement systems and the KPIs that work
- The Role of Budgeting and Cost Control
- The complexity of managing contemporary organizations
- Strategic planning, budgeting and management control systems
- The key elements of budgeting: objectives, initiatives and resources
- Budgeting and the role of the controller
- Advantages and the disadvantages of budgeting
- Improvement of the budgeting situation in the organization?
- Budgeting and Cost Control
- Budgeting process: The essential
- Zero-based budgeting?
- Costing for budgeting: key terms and concepts
- Variable vs. fixed costs
- The contribution margin: Concept and importance
- Costing: From Traditional to Activity-Based
- Complementing traditional costing with activity-based costing
- Direct vs. indirect cost
- Cost allocation: traditional costing and activity-based costing (ABC)
- From traditional budgeting to Activity-based budgeting (ABB)
- The importance of costs analysis
- Capital Budgeting
- Capitalized vs. period costs
- Capital budgeting: The concept and importance
- Payback period (PBP)
- Net-present value (NPV)
- Internal rate of return (IRR)
- Improvement of the situation in the organization?
- Beyond the Budgets: Financial and Non-Financial KPIs
- limits of budgeting and financial reporting
- drivers of the business model
- integrating financial and non-financial issues
- The balanced scorecard and KPIs
