Budget Preparation Skills

Course Code: FA02

►Course Objective

 

  • Learn costing and budgeting terminology used in business
  • Understand the importance of a well-defined costing and budgeting process
  • Determine full costs of outputs for the goods and services provided
  • Master traditional techniques and recent best practices
  • Link finance and operation for budgeting purposes and strategy execution
  • Learn how to build a comprehensive performance measurement system

 

►Target Audience

 

  • The staff person who will be responsible for entering data into the budget system or training others how to enter information
  • Those who want to gain control of the firm's financial standing and obtain a firm grasp on the numbers side of their job
  • Financial Professional, Professional R&D, Sales/Marketing Professional, General Accounting Professional, Business Unit Professional
  • Anyone who wants to understand the basics of budgeting and costing

 

►Course Outline

 

DAY 1

Budgeting and Its Role Within the Management Process

  • The role of budgeting within management accounting
  • Linking costing and budgeting to strategy and performance measurement
  • The process of value creation: implications for budgeting
  • What is a budget and why costing is fundamental
  • Budgets - the financial expression of the operating plan
  • Linking financial and operational issues
  • Behavioural implications of budgeting
  • Case discussion and examples

 

DAY 2

The Framework for Budgeting

  • Elements of the budgetary framework
  • Key concepts and terminology
  • Advantages and disadvantages: critical issues to be discussed
  • Overview on the financial statements
  • Balance sheet, Income statement and cash-flow statement
  • Introducing cost analysis for decision making
  • The importance of understanding full costs
  • The importance of understanding full costs
  • Case discussion and examples 

 

DAY 3

 

Costs Analysis for Budgetary Purposes

  • Costing for budgeting: Why?
  • Cost terms and purposes
  • Fixed and Variable costs
  • Cost, profit and volume relationships
  • The key concept of contribution margin
  • Direct and indirect cost – the avocation problem
  • Traditional methods vs. Activity-based costing
  • Case discussion and examples

 

DAY 4

 

Flexible Budgets and Variance Analysis

  • Budgeting for management control purposes
  • Describe the difference between a static budget and a flexible budget
  • Compute flexible-budget variances and sales-volume variances
  • Explain why standard costs are often used in variance analysis
  • How to interpret variance analysis
  • Integrate continuous improvement into variance analysis
  • Case discussion and examples
  • Is budgeting enough?

 

DAY 5

 

Beyond Budgeting: Broadening Performance Measurement Systems

  • Shortcomings of traditional approaches to budgeting and measurement
  • Linking financial to operational issues
  • The Balanced Scorecard and Six-sigma
  • Linking Strategy execution to Performance Measurement
  • Financial perspective, Customer perspective
  • Internal Business Process perspective, Learning and growth perspective
  • Developing and adapting the scorecard
  • Case study illustration and discussion


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Date & Location

Date : 10 February 2019

Duration : 5 days

Place : Cairo

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Date : 14 July 2019

Duration : 5 days

Place : Kuala Lumpur

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Date : 20 October 2019

Duration : 5 days

Place : Istanbul

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