Budgeting and Cost Control
Public Workshops
Budgeting and Cost Control

Overview

Better budgets can boost the department and career to higher levels of performance and success. Well-informed executives use the budgeting process to take stock of their direction, refine their goals, and share their mission with their staff. They use budgeting to control costs and expenses and hence contribute to the overall profitability of their operation. Their budgeting reveals their position in the market, places untapped resources at their command, and motivates all employees to greater levels of productivity. They use their budgets to propel them towards the top of their industry. This program shows how the budget can be the most powerful tool for strategy and communications. It points out that budget brings into light all of the factors that every manager must consider, such as industry conditions, competition, degree of risk, stability of operations, capacity limitations, pricing policies, turnover rates in assets, production conditions, product line and service considerations, inventory balances and condition, trends in the marketplace, number of employees and their technical abilities, availability and cost of raw materials, available physical resources, technological considerations, economy, and political aspects. Then it uncovers the role each of those factors plays in achieving organizational goals. Since those goals cannnot be achieved single-handedly, this program suggests ways to use the budget to help each employee appreciate how they will contribute to the division's and company's cost control and ultimately to profitability.

Key Module

  • An Introduction – The What and Why
    -Financial and managerial accounting
  • Strategic Financial Planning and Budgeting
    -Before the numbers
    -Process
    -Preparation
    -Control
    -The strategic plan
    -The vision, mission and values translated into financial numbers
  • Factors affecting Budgeting and Cost Control
    -The Product Lifecycle
    -The Value Chain
    -World Class Manufacturing
    -Just In Time (JIT)
    -Theory of Constraints
    -Back flush Accounting and post production accounting
    -Throughput Accounting
    -Target Costing
  • Administering the Budget:
    -Reports
    -Analyses
    -Evaluations
  • Types of Budgets
    -Short, long, fixed, rolling and incremental
    -The Master Budget
    -Operating Budget
    -Financial Budget
    -Cash Budget
    -The Human side of budgeting
    -Sensitivity Analysis
  • Costs Analysis
    -Cost centres
    -Absorption costing
    -Marginal costing
    -Standard costing
    -Break even analysis
    -Activity-based approaches
    -Variance analysis
    -Direct product profitability
  • Break-Even and Contribution Margin Analysis:
    -Profit
    -Cost
    -Volume Changes
  • Profit Planning
    -Targeting
  • Reaching Achievable Goals
  • Master Budget
    -Forecasting
    -Profit Planning
  • Cost Behavior
    -The Concept of Flexible Budgets
  • Costing – From traditional to Activity-Based
    -Different types of costs
    -Cost centres
    -Full costing
    -Absorption costing
    -Marginal costing
    -Standard costing
    -Break even analysis
    -Activity-based approaches
    -Variance analysis
    -Direct product profitability
  • Evaluating Performance:
    -The Use of Variance Analysis
  • Manufacturing Costs:
    -Sales Forecasts
    -Realistic Budgets
  • Marketing:
    -Budgeting for Sales, Advertising, and Distribution
  • Research and Development:
    -Budgets for a Long-term Plan
  • General and Administrative Costs:
    -Budgets for Maximum Productivity
  • Capital Expenditures:
    -Assets to be Bought, Sold, and Discarded
  • Forecasting and Planning:
    -Reducing Risk in Decision Making
    -Moving Averages and Smoothing Techniques
    -Quantitative Forecasting
  • Regression Analysis:
    -Popular Sales Forecast Systems
  • Cash Budgeting and Forecasting Cash Flow:
    -Methods
  • Financial Modeling:
    -Tools for Budgeting and Profit Planning
    -Computer-based Models
  • Capital Budgeting:
    -Selecting the Optimum Long-term Investment
  • Zero-Base Budgeting (ZBB):
    -Priority Budgeting for Best Resource Allocation
  • Managers’ Performance:
    -Evaluation on the Division Level
  • The Future of Budgeting:
    -Balance Scorecard
    -Budgets and issues of motivation
  • Examples and Case studies
  • Developing the Budget – workshop

Learning Outcome

  • Apply budgeting fundamental principles
  • Prepare and create budgets
  • Understand budgeting terminology
  • Practice budgeting methods
  • Calculate operating budgets
  • Learn about types of budgets
  • Analyze budgets and cash flows
  • Identify all the appropriate costs to be included in a capital expenditure proposal
  • Apply the concept of internal control by the interpretation of budgets
  • Analyze management cost reports and take corrective action
  • Cut costs by using financial tools

Dates
10 to 14 Dec - 17  /  Abu Dhabi registation

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