Eurotech Training Consultancy Recruitment Fadi Jawad

Cost Analysis to Support Strategic Decisions

Cost Analysis to Support Strategic Decisions

Cost Analysis to Support Strategic Decisions

 

OBJECTIVES

  • Enhance cost awareness and its relationship with strategy
  • Describe specific cost analysis and performance measurement techniques
  • Select the costing measurement system that works
  • Select the systems of performance measurement that works
  • Discuss real case studies
  • From cost to strategy to performance measurement
  • Broadening the management accounting knowledge
  • Deliver more timely and useful information to decision makers
  • Identify & manage key financial and non-financial indicators for the business

WHO SHOULD ATTEND?

  • All business disciplines and sectors of industry, irrespective of functional responsibilities, where personnel have to plan and cost and who are responsible for strategic analysis
  • Other professionals who would benefit from having the opportunity to consider new ideas and methods and personnel on a fast-track development

COURSE OUTLINE

DAY 1 – Introducing the linkages between strategy and costing

  • Managing contemporary organization
  • Strategic Plan, Budgeting, Costing and Management Control
  • Management Accounting for organizational control systems
  • Responsibility accounting and the process-view
  • The context for costing
  • The Budget and its role for achieving organizational targets
  • What is it the situation in your organization?

DAY 2 – Cost analysis and classifications

  • Cost terms and classification
  • Inventoriable vs. period costs
  • Manufacturing vs non-manufacturing costs
  • Variable vs. Fixed costs (CVP analysis)
  • Direct vs. indirect cost
  • Under-costing and Over-costing problems
  • Problems and Examples – Case study illustration

DAY 3 – From cost accounting to management control

  • Cost allocation: traditional costing and activity-based costing (ABC)
  • From traditional budgeting to Activity-based budgeting (ABB)
  • Activity-based management
  • Decentralized organizations
  • Cost/Profit/Investment centers
  • Transfer-pricing issues
  • Problems and Examples – Case study illustration

DAY 4 – Flexible budgets and variance analysis

  • The features of budgetary control
  • Define the master budget and explain its major benefits to an organization
  • Describe the difference between a static budget and a flexible budget
  • Compute flexible-budget variances and sales-volume variances
  • Explain why standard costs are often used in variance analysis
  • Integrate continuous improvement into variance analysis

DAY 5 – Linking strategy to actions: Beyond costing

  • Shortcomings of traditional approaches to measurement
  • The Balanced Scorecard: linking Strategy to Performance Measurement
  • Financial perspective, Customer perspective
  • Internal Business Process perspective, Learning and growth perspective
  • Developing and adapting scorecard

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