Budgeting and Cost Control
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Budgeting and Cost Control Course
Introduction:
In today's business landscape, effective budgeting and cost control are paramount for the success of organizations. To remain competitive, companies must prioritize adding value to their customers and shareholders through streamlined processes. Simultaneously, they need to maintain control over their business processes and budgets. This heightened focus on budget management, operational cost control, and monitoring critical business processes has become essential.
The purpose of this program is to empower professionals who are responsible for enhancing team or department performance while also achieving cost reductions when necessary.
By employing a blend of technical analysis, problem-solving methodologies, and real-life case studies, this course equips participants with the latest innovations in budgeting and cost awareness analysis. The skills acquired through this program are designed to withstand even the most rigorous external scrutiny.
Throughout the course, participants will develop a comprehensive understanding of essential budgetary techniques and cost management strategies. They will learn how to analyze budgets, identify areas for improvement, and implement effective cost control measures. Real-world case studies will provide practical insights and enable participants to apply their knowledge to real-life scenarios.
By the end of this program, participants will possess the tools and knowledge required to optimize performance while effectively managing costs. They will be equipped to make informed decisions, track critical business processes, and drive sustainable financial results. This course empowers professionals to navigate the complexities of budgeting and cost control with confidence and achieve tangible outcomes for their organizations.
Course Objectives:
At the end of this Budgeting and Cost Control Course, you will able to:
- Understand the peaks and troughs of income and expenditure
- Learn costing and budgeting terminology used in business
- Master techniques for cost-benefit analysis
- Learn how to construct profit, cash and balance sheet plans and budgets
- Learn how to evaluate variances from plan and identify corrective actions
- Cover the different types of cost
- Evaluate the differences between traditional and innovative budget analysis
- Understand Activity Based Budgeting
- Capital Budgeting Techniques and Cash Flow
- Understand the key financial indicators and how to monitor accordingly
- The role of project management within cost control
- Evaluate the connection between budget processes and business improvement
Who Should Attend?
This Budgeting and Cost Control Course 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:
The need for Financial Control in business
- Understanding accounting
- Management accounting versus financial accounting
- The relationship between business management and financial management
- How budgeting fits into the bigger picture
- How cost management improves an organization’s financial position
- Key aspects of managing working capital
Capital Budgeting and Investment Appraisal
- The time value of money
- Understanding Appraisal Techniques – Net Present Value (NPV), Internal Rate of Return (IRR) and Payback period
- Selecting an appraisal technique
- The use of Sensitivity analysis in evaluating projects
- Strategic considerations in assessing capital projects
- Creating an effective Capital Budgeting framework
Cost Analysis and Management
- Understanding cost structure and behaviour
- Costs as a relationship to outputs – cost/volume/price relationship
- The concept of contribution margin
- Break-even analysis for planning and control
- Cost allocation and apportionment
- Benefit-cost analysis
Full Costing, Marginal Costing and Activity Based Costing
- Comparing full and marginal costing
- Direct and indirect costs in budgeting for decision making
- Role of costs in pricing strategies
- Activity Based Costing (ABC)
- Managing cost control
Budget Construction and Control
- Nature and purpose of budgets for planning and control
- Types of budgets and budgeting
- Creating Key Performance Indicators for financial and non financial performance
- Building a budget
- Budgetary control and variance analysis
- Budgeting for non-financial measures -introducing the Balanced Scorecard