Finance & Accounting Effective Budgeting and Cost Control
Finance & Accounting
Effective Budgeting And Cost Control
OBJECTIVES
- See how the budget relates to the two key financial statements: balance sheet and income statement.
- Prepare a budget consistent with the organization’s strategic plan.
- Use appropriate estimation techniques in the development of revenue and expense budgets.
- Identify all the appropriate costs to be included in a capital expenditure proposal.
- Analyze management cost reports and take corrective action.
WHO SHOULD ATTEND?
All managers, supervisors and analysts who prepare and/or use management budgets.
COURSE OUTLINE
Principles of Budgeting and Cost Control
- The Critical Functions of Management
- The Budget as a Key Financial Statement
Linking the Tactical Budget to Strategic Objectives
- The Strategic Planning Process
- The Budget as a Plan
Types of Budgets
- Master Budget
- Operating and Capital Budgets
- Financial Budgets
Approaches to Budgeting
- Incremental Budgeting
- Zero-Based Budgeting
- Fixed Budgeting
- Flexible Budgeting
- Kaizen Budgeting
Budgeting and Costing Techniques
- Forecasting Methods
- Break-even Analysis
- Use of Standards
- Trend Analysis
- Cost Estimation
- Characteristics of an Effective Budget
Project Budgeting
- Project Planning
- Direct and Indirect Project Costs
Capital Expenditure Budgeting and Analysis
- Pay-back Period
- Net Present Value
- Internal Rate of Return
- Approval for Expenditure AFE
Cost Control and Management Budget Reports
- Budget as a Control Tool
- Approaches to Cost Control
- Understanding the Need for Timeliness and Precision
- Variance Analysis
- Problems in Budgeting