COURSE OVERVIEW

To make informed business decisions, decision-makers need a solid understanding of budgeting and costing. This training program is designed to equip participants with practical knowledge on budgeting, cost control, variance analysis, and related financial tools. By mastering these concepts, attendees will be able to make better decisions and achieve improved business results.

LEARNING OBJECTIVES

Participants of this Effective Budgeting & Cost Control course will be able to:

• Understand the full budgeting process.
• Explore a range of budgeting approaches.
• Grasp essential budgeting and costing terminology.
• Prepare more accurate and effective budgets.
• Apply advanced costing methods.
• Develop their own budgeting and control systems.
• Utilize non-budgetary tools, such as Balanced Scorecards, for enhanced performance monitoring.

TARGET AUDIENCE

This course is ideal for:

• Staff involved in budget preparation
• Budget supervisors and operational managers
• Production and financial managers
• Personnel providing or entering budget data
• Anyone interested in understanding budgeting and costing in a business context

TRAINING METHODOLOGY

This results-oriented program is based on adult learning principles and combines:

• Engaging short lectures supported by dynamic presentations
• Video demonstrations to reinforce key concepts
• Interactive discussions and practical exercises
• Ample time for Q&A and action planning

Pre- and post-course assessments will gauge participants’ learning and the effectiveness of the training.

COURSE CONTENT

Module 1: Strategic and Financial Planning

Description:
Focus on the strategic elements that influence budgeting decisions.
Key Topics:

• Understanding the context before the financial numbers
• Differences between financial and management accounting
• Adapting to a changing competitive environment
• Linking strategy to budgeting and costing
• Importance of a strategic plan
• Mission, vision, and goals
• Tools for strategic analysis: Porter’s Five Forces, SWOT, PESTLE
• Aligning budgets with organizational strategy
• Case studies and exercises

Module 2: Factors Affecting Budgeting and Cost Control

Description:
Examine manufacturing and operational elements that impact costing.
Key Topics:

• Product lifecycle considerations
• Customer satisfaction focus
• The value chain
• Principles of world-class manufacturing
• Just-In-Time (JIT) production
• Quality management systems
• Theory of constraints
• Throughput accounting
• Target costing
• Case studies and exercises

Module 3: Costing: From Traditional to Activity-Based

Description:
Dive into the details that improve costing accuracy.
Key Topics:

• Types of costs and cost centers
• Full costing and absorption costing
• Marginal and standard costing
• Break-even analysis
• Activity-based costing approaches
• Variance analysis
• Direct product profitability
• Case studies and exercises

Module 4: Budgets and Variance Analysis

Description:
Explore the full spectrum of budgeting techniques.
Key Topics:

• Fundamentals of budgeting
• Planning, coordination, and communication
• Types of budgets: short-term, long-term, fixed, rolling, incremental, zero-based (ZBB), Kaizen
• Master, operating, financial, and cash budgets
• Human factors in budgeting
• Sensitivity analysis
• Case studies and exercises

Module 5: Capital Budgeting and Investment Appraisal

Description:
Focus on capital budgeting and investment decision-making.
Key Topics:

• Time value of money
• Investment appraisal techniques: NPV, IRR, Payback Period
• Practical exercises and case studies
• Beyond financial budgeting: Balanced Scorecard
• Budgets and motivational considerations
• Case studies and exercises