Introduction
Budgeting and Cost Control is essentially an unquestionable requirement for contemporary organisations. This essential course will assist you master the most widely used internal methods for planning and monitoring activities and sustaining performance over time – Budgeting & Cost Control.
The Budgets are inseparably linked with both strategy formulation and execution. But accurate Budgets depend on Cost Control and analysis. It is important to comprehend how costs behave so that realistic plans can be produced, and the right financial and non-financial resources can be made available to the business. Management Control builds on the budgets to comprehend variances and take corrective actions. This course will help you to master the traditional methods of budgeting and control as well as new dynamic approaches, which reflect and respond to the current complex business environment.
Objectives
– Establish an integrated planning, budgeting and reporting process.
– Comprehend the important role of Budgets within organisations.
– Comprehend Costs behaviour and handle costs more effectively.
– Master traditional and innovative approaches to Budgeting and Cost Control.
– Choose the performance measurement systems and the KPIs that work.
Course Outline
Day 1
The Role of Budgeting & Cost Control
– The complexity of managing contemporary organisations.
– Strategic planning, budgeting and management control systems.
– The vital elements of budgeting: objectives, initiatives and resources.
– Comprehending the context for budgeting & the role of the controller.
– What are the advantages and the disadvantages of budgeting.
– What is it the situation in your organisation? How to improve it?
Day 2
Budgeting and Cost Control
– What are the essential inputs of the budgeting process?
– What is zero-based budgeting?
– Costing for budgeting: key terms and concepts.
– Variable vs. Fixed costs.
– The important role of contribution margin.
– Cases, problems and examples.
Day 3
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.
– Cases, problems and exercises.
Day 4
Capital Budgeting
– Capitalized vs. period costs.
– Capital budgeting.
– Payback period.
– Net-present value.
– Internal rate of return.
– What is it the situation in your organization?
Day 5
Beyond the Budgets: linking financial and non-financial KPIs
– What are the limits of budgeting and financial reporting?
– What are the drivers of the business model?
– What are the trades-off in place?
– Beyond budgeting: integrating financial and non-financial issues.
– The balanced scorecard and KPIs.
– Case, problems and examples.
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