Budgeting & Cost Control

DAY 1 - 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

DAY 2 - 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

DAY 3 - 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

DAY 4 - 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

DAY 5 - 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