Objectives:
- Understand the importance of a well-defined budget process.
- 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.
- Understand discounted cash flow (DCF) techniques and their application to financial decision making.
- Build and use budgets relevant to your organisation.
Methodology:
You will learn by active participation during the programme through the use of exercises, case studies, practical workshops, syndicate and group discussions.
Summary:
This training session is presented in a manner that will make budgeting, costing and decision making techniques more easily understood by people from every discipline across the organisation. Case studies and practical exercises are used to emphasise key issues and underpin learning by relating them to typical business scenarios.
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 organisation’s financial position and 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.
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
- 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.
Language: English.
Place: ONLINE
