Who can benefit?

• All managers, supervisors and analysts who prepare and/or use management budgets

Course Objectives:

• See how the budget relates to the key financial statements: balance sheet, income statement, and cash flows.
• 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.

 Course outline

• Principles of Budgeting and Cost Control

• The Critical Functions of Management
• Is Control the Missing Link?

• Linking the Tactical Budget to Strategic Objectives

• The Strategic Planning Process and the Budget as a Plan
• Aligning the Budget with the Organization's Strategy

• Types of Budgets

• Master Budget, Operating and Capital Budgets
• Financial Budgets

• Approaches to Budgeting

• Incremental Budgeting
• Zero-Based Budgeting
• Fixed Budgeting and Flexible Budgeting
• Kaizen Budgeting

• Budgeting and Costing Techniques

• Forecasting Methods
• Break-Even Analysis
• Use of Standards
• Trend Analysis and Cost Estimation
• Characteristics of an Effective Budget

• Project Budgeting

• Project Planning
• Direct and Indirect Project Costs

•  Capital Expenditure Budgeting and Analysis

• Time Value of Money
• Pay-Back Period (PBP)
• Net Present Value (NPV)
• Internal Rate of Return (IRR)
• Profitability Index (PI)
• Accounting Rate of Return (ARR)
• Approval for Expenditure (AFE)
• Sensitivity and Risk Analysis
•  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