Budget Preparation, Allocation and Cost Control Course

Course Overview:

The course Budget Preparation, Allocation & Cost Control Tactics can be useful for participants wishing to acquire higher level skills in the areas of budgeting and cost control as well as performance measurement.

At the end of the training sessions, such attendees will be in a position to harmonize the planning, budgeting and reporting processes, appreciate cost structure as well as enhance their decision making process. These include issues of capital budgeting, performance measurement and the use of Balanced Scorecards. 

The course also includes overhead allocation problems and how Activity-Based Costing can assist their pricing tactics. Participants will be able to understand how to choose the right performance measurement system and the impact of strategic decision on the finances of a firm. 

This course will be beneficial to such professionals concerned with budget, finance management as well as strategy formulation, for example, business analysts, research and development, marketing, and managers at the business unit level.

Course Objectives:

At the end of this Budget Preparation, Allocation & Cost Control training course will:

• Successfully built integrated planning, budgeting, and reporting process
• Understand cost 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 overhead 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?

The budget Preparation, Allocation & Cost Control training course, is ideal for: 

• Those in charge of 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 Goals 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 in 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

see more: Budgeting and Cost Control Course