Setting and Controlling Budgets

This workshop will feature:

  • Strategic planning 
  • The linkages between planning, budgeting, costing and performance measurement 
  • The features of budgetary control 
  • Cost analysis: fixed versus variable costs; cost/volume/profit (CVP) analysis; direct versus indirect costs; traditional costing and activity based costing 
  • The role of full costing and contribution margin 
  • Advantages and disadvantages of budgeting 

Description

Setting and controlling budgets properly and accurately is fundamental to every successful business. This seminar shows how budgeting is linked to strategy, costing and performance measurement. The purpose of the seminar is to clarify the jargon and methodology of budgeting within the areas of management accounting and performance measurement.

This workshop will feature:

  • Strategic planning 
  • The linkages between planning, budgeting, costing and performance measurement 
  • The features of budgetary control 
  • Cost analysis: fixed versus variable costs; cost/volume/profit (CVP) analysis; direct versus indirect costs; traditional costing and activity based costing 
  • The role of full costing and contribution margin 
  • Advantages and disadvantages of budgeting 

What are the Goals?

The objectives of the seminar are to provide delegates with the necessary tools and techniques to find better answers to questions such as: 

  • How to plan and forecast business trends? 
  • How do we read, understand and interpret master budgets? 
  • How do we prepare and monitor business performance and identify potential cost savings? 
  • What are the key financial performance indicators and how do we calculate them? 
  • How do we integrate the budgeting process with the company’s long-term strategic vision? 
  • What are the key criteria in Capital Budgeting selection and allocation? 
  • How does Variance Analysis assist us in making better business decisions? 

Organisational Impact 

The organisation will gain through: 

  • Better understanding of the strategic planning process and how it relates to budgetary planning and control; 
  • Increased awareness of the of the importance of accurate and effective budgeting and cost control 
  • More effective understanding of capital budgeting prioritisation and planning priorities 
  • Deeper understanding of cause and effect relationship for budgeting purposes 

Personal Impact 

Delegates will develop an understanding of: 

  • How to determine the most effective and appropriate approach to corporate budgeting 
  • How to build, read and interpret master budgets 
  • How to use analytical and qualitative approaches to predict future performance of the organisation. 
  • How to use Variance Analysis to understand what is really happening in the organisation 

Who is this Workshop for?

  • Financial professionals, R&D professionals, sales/marketing professionals, general accounting professionals, business unit professionals 
  • Managers from any other non-financial areas that need or wish to understand the basics of budgeting and costing. 

How will this Workshop be Presented?

This workshop combines theory and practice. We use company examples to illustrate how the techniques presented have been applied in real case studies. The purpose is to use a mix of proven learning techniques to ensure maximum understanding, comprehension and retention of the information presented.

The Course Content

Day 1 – Understanding and controlling cost 

  • Financial versus management accounting 
  • Exploring the linkages between strategy, budgeting, costing and performance measurement 
  • What is costing? 
  • Defining costs 
  • Cost behaviour – fixed and variable costs 
  • The contribution concept 
  • Cost, volume, profit (CVP) analysis and break-even models 
  • Traditional versus activity based costing (ABC) 
  • Product costs versus period costs 

Day 2 – Understanding and managing budgets 

  • The budgeting framework 
  • Capital (CAPEX) and Operating (OPEX) Budgeting Approaches 
  • Advantages and disadvantages of budgeting 
  • Budget variance analysis 
  • Integrate continuous improvement into variance analysis 
  • Analysis of Investment Decisions 
  • Applying time-adjusted measures 
  • Refinements of investment analysis 

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