Budgeting, Costing and Decision Making

Ref	FI 361	FI 650	FI 180
Dates	18 - 22 July 2010	12 - 16 December 2010	6 - 10 March 2011
Venue	Dubai	Dubai	Dubai
Fees	US$ 3850	US$ 3850	US$ 3850
CPE Credits	30	30	30

INTRODUCTION

All business decision-making involves analysing situations containng varying degrees of risk. This programme uncovers the essential skills required to understand the processes of budgeting and costing for better decision-making. From understanding the importance of a well defined budget process through to the importance of how costs behave so that realistic plans can be produced. In this programme you will learn how to:

Identify the principal factors required to produce a successful business case
Develop budgeting and financial skills required for better decision-making
Identify sources of financial and business data to support the budgeting process
Learn new techniques and methodologies to simulate typical business scenarios

WHO SHOULD ATTEND?

This programme would benefit any professional who needs to improve their skills in constructing and controlling a budget
Financial personnel who need to evaluate plans for approval and variance reports for corrective action
Non-financial professionals needing to evaluate proposed business expenditure decisions and who need to know more about the budgeting process, plan, cost and budget during their business careers

PROGRAMME OBJECTIVES

Understand the importance of a well-defined budget process
Learn costing and budgeting terminology used in business
Master techniques for cost-benefit analysis
Learn how to construct profit, cash and balance sheet plans and budgets
Learn how to evaluate variances from plan and identify corrective actions
Understand discounted cash flow (DCF) techniques and their application to financial decision making
Use and build EXCEL spreadsheets for financial analysis, from basic models through to Monte Carlo simulation

TRAINING METHODOLOGY

You will learn by active participation during the programme through the use of exercises, case studies, practical workshops, syndicate and group discussions.

PROGRAMME SUMMARY

This training session is presented in a manner that will make budgeting, costing and decision making techniques more easily understood by people from every discipline across the organisation. Case studies and practical exercises are used to emphasise key issues and underpin learning by relating them to typical business scenarios.

PROGRAMME OUTLINE

DAY 1 - The need for Financial Control in business

Understanding accounting
Management accounting versus financial accounting
Cost behaviours in Cost-Volume-Profit scenarios
Breakeven and targeted net income scenarios
Business cases with master budgets
Benefit-cost analysis

DAY 2 - Capital Costs and Investment Appraisal

Estimating cash flows within the business system
Understanding Net Present Value (NPV) and Internal Rate of Return (IRR)
Defining the approval criteria and review process
Post-implementation audits of capital projects
Sensitivity analysis and uncertainty
Monte Carlo simulation techniques in budgeting

DAY 3 - Cost Volume Profit Analysis

Identifying relevant costs in complex decisions
Complex applications of C-V-P analysis
Multiple products and services C-V-P
Evaluating C-V-P before and after implementation
Special sales orders and/or segment analysis
Make or buy decisions

DAY 4 - Full Costing, Marginal Costing and Activity Based Costing

Comparing full and marginal costing
Direct and indirect costs in budgeting for decision making
Role of costs in pricing strategies
Overhead allocation methods and difficulties
Variance analysis of materials, labour, & overhead in manufacturing and services
Activity Based Costing (ABC) in manufacturing and services

DAY 5 - Budget Construction and Control

Budgeting as a communication process
Nature and purpose of budgets for planning and control
Budgetary control and variance analysis
Responsibility centres: cost, profit and investment
Segment reporting internally and externally

To Register on this seminar, please click here