Budget Preparation, Allocation and Cost Control
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Budget Preparation, Allocation and Cost Control Course
Introduction:
Efficient cost management plays a pivotal role in ensuring that a project adheres to its budget and is successfully completed within the planned scope. Without effective cost control measures, a company runs the risk of financial losses and exceeding project profitability targets.
The Budget Preparation, Allocation & Cost Control training is indispensable for organizations as it equips them with the necessary skills for informed decision-making and strategic planning. This training program is designed to provide participants with a comprehensive understanding of cost awareness and budgetary techniques, enabling them to effectively manage and control processes and projects.
Through a combination of analytical techniques, problem-solving exercises, and real-life case studies, this course delivers practical knowledge and skills that are essential in today's competitive global landscape. In this environment, budgets are intrinsically linked with both strategy formulation and cost analysis, making it imperative for organizations to have a strong grasp of cost management principles.
Throughout the training, participants will gain insights into budget preparation, allocation strategies, and cost control methodologies. They will learn how to analyze and evaluate costs, identify areas of potential savings, and implement effective budgetary measures. By examining real-world case studies, participants will be able to apply their newly acquired knowledge to practical scenarios, enhancing their ability to manage and control projects effectively.
Upon completion of the Budget Preparation, Allocation & Cost Control training, participants will possess the skills and competencies needed to navigate the complexities of cost management. They will be equipped to make informed budgetary decisions, optimize resource allocation, and ensure project success within the defined financial parameters.
Course Objectives:
At the end of this Budget Preparation, Allocation & Cost Control 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
Who Should Attend?
Budget Preparation, Allocation & Cost Control training course, is ideal for:
- Those in charge for designing and managing a budgetary system
- The staff person who will be responsible for entering data into the budget system or training others how to enter information
- Those who want to gain control of the firm's financial standing and obtain a firm grasp on the numbers side of their job
- Financial professionals, R&D professionals, sales/marketing professionals, general accounting professionals, business unit professionals
- Anyone who wants to understand the basics of budgeting, costing and performance measurement
Course Outlines:
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
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)
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
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)
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