Effective Budgeting and Cost Control

Course Outlines:

Module One:
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  

Module Two:

Budgeting: Principles and Key Concept

• 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)

Module Three:
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

Module Four:
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)

Module Five:
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