Course Overview
Course Objectives
At the end of this budget setting and control course, the participants will be able to:
- Link finance and operation for budgeting purposes and strategy execution.
- Learn how to build a comprehensive performance measurement system.
- Develop an understanding of the corporate budgeting process.
- Interpret the financial impact of strategic directions.
- Understand the problems of overhead allocation and how Activity-Based Analysis may aid decision-making and pricing strategies.
- Understand the budgeting methods most beneficial to them.
- Understand how to construct a relevant and efficient budget.
- Evaluate the usefulness of costing techniques in accurately calculating and ensuring profitability.
- Reinforce and expand their knowledge by linking budgeting to strategy and performance measurement.
- Expand their understanding by linking financial and operational issues.
- Learn to be aware of the non-financial implications of budgeting.
Course Audience
- General Management
- Estimating & Costing
- Operations
- Facilities Management
- Sales & Marketing
- Quality Management
- Engineering
- Project Management
- Procurement
- Logistics
- Research & Development
- Asset Management
- Human Resources
Course Methodology
Individuals with varied experience and knowledge are encouraged to share their own experience and consider alternative approaches introduced during the training seminar. Formal presentations will be supported by numerous worked examples, the use of real-world scenarios and group discussion. In this supportive and interactive workshop environment, your Instructor will facilitate team case studies and exercises that will reinforce the hands-on application of each of the learning points and topics covered.
Difficult mathematical concepts are minimised wherever possible and handled in a visual and user-friendly way – our aim is for this to be an enjoyable learning experience.
Course Outline
Day 1:
- Financial vs. Managerial Accounting
- Linkages between Strategy, Budgeting, Costing, and Performance Measurement
- Strategic Planning: Mission, Vision, Goals, and Objectives
- SWOT and PESTEL Analysis
- Identifying Value Creation Drivers
Day 2:
- Understanding Budgets: Definition, Purpose, and Framework
- Types of Budgets
- The Budgeting Process and Human Factors
- Sales Forecasting and Budgeting Schedules
- Top-down vs. Bottom-up, Incremental vs. Zero-based Approaches
Day 3:
- Defining and Classifying Costs
- Cost Behavior: Fixed vs. Variable
- Breakeven Models and Contribution Margin
- Direct vs. Indirect Costs
- Traditional vs. Activity-Based Costing (ABC)
- Product vs. Period Costs
Day 4:
- Organizational Budgeting Practices
- Budget Variance Analysis
- Static vs. Flexible Budgets
- Flexible-Budget and Sales-Volume Variances
- Using Standard Costs in Variance Analysis
- Integrating Continuous Improvement into Variance Control
Day 5:
- Advantages and Disadvantages of Budgeting
- Improving Budgeting Processes
- Beyond Budgeting: Alternatives and Modern Practices
- The Balanced Scorecard Framework
- Linking Strategy, Budgeting, and Performance Measurement
- Perspectives: Financial, Customer, Internal Processes, Learning & Growth