Cost Control & Budgeting

Cost Control & Budgeting

  • Country: United Arab Emirates

  • City: Abu Dhabi

START DATE: 22 Sep 2019

END DATE: 26 Sep 2019


  • COURSE TYPE: Variety Programs



Cost Control & Budgeting

Why Attend

Planning and budgeting are must-have skills for all professionals regardless of their function or managerial level. This course covers the concept of budgeting as a planning tool, a financial device and a control mechanism. In addition, it provides the necessary application tools required to making long-term and short-term planning decisions.

Course Methodology

This course focuses on exercises, case studies, and individual and group presentations.

Course Objectives

By the end of the course, participants will be able to:

=         Defend the importance of linking an organization's budget with its strategic plan

=         Demonstrate how the budget relates to the key financial statements: balance sheet, income statement, and cash flow

=         Prepare the key elements of an operating and capital budget and evaluate the different budgeting approaches used

=         Apply cost control tools, analyze management variance reports and take proper corrective action

=         Calculate different capital budgeting evaluation techniques as included in a capital expenditure proposal

=         Utilize cost-volume-profit analysis in making budgeting decisions

Target Audience

All managers, supervisors and analysts who prepare or use management budgets.

Target Competencies

=         Interpreting Financial statements

=         Planning and budgeting

=         Cost control

=         Capital budgeting

=         Applying cost-volume-profit analysis

=         Utilizing breakeven analysis


Course Outline

=         Planning and the functions of management

=         The critical functions of management

=         Aligning the budget with the strategy of the organization

=         Road map to strategy

=         Budget as a planning tool

=         Control: the missing link

=         Planning pitfalls

=         The key financial statements

=         The accounting system

=         The income statement

=         The balance sheet

=         The cash flow statement

=         Budgeting: process and approaches

=         The advantages of budgeting

=         The budget process

=         Rolling budgets

=         The master budget

=         Operating and capital budgets

=         The budgeted financial statements

=         Approaches to budgeting:

=         Incremental budgeting

=         Zero based budgeting

=         Flexible budgeting

=         Kaizen budgeting and continuous improvement

=         Activity based budgeting

=         Tools of forecasting

=         Direct and indirect costs

=         Characteristics of an effective budget

=         Problems in budgeting

=         Cost control

=         Budget as a control tool

=         The control process

=         Characteristics of an effective control system

=         Responsibility reporting

=         Variance analysis: identifying the components of variance

=         Variance analysis: taking the corrective action

=         Capital expenditure budgeting and analysis

=         Time value of money

=         Simple versus compound interest

=         Identifying and analyzing cash flows

=         The discount rate: using cost of capital

=         Net Present Value (NPV)

=         Internal Rate of Return (IRR)

=         Profitability Index (PI)

=         Pay-Back Period (PBP)

=         Accounting Rate of Return (ARR)

=         Approval for Expenditure (AFE)

=         Sensitivity and risk analysis

=         Cost-Volume-Profit analysis (CVP)

=         Identifying the fixed costs and variable costs

=         Computing breakeven point in units

=         Computing breakeven point in sales

=         Assumptions of CVP analysis

=         Using CVP in budgeting decisions