Description
OBJECTIVES:
- Have an understanding of the basic financial principles underlying business operations
- Understand how financial information is used to make business decisions
- Have an understanding and be able to apply various budgeting techniques
- Be able to undertake effective business forecasting
- Be able to accurately interpret company accounts
- Be able to prepare cash budgets and undertake cash flow planning and control
- Have developed their skills in evaluating capital expenditure projects
PROGRAMME DETAILS
DAY ONE
- Introduction to budgeting, cost estimation & control
- The difference between a target, a budget and a forecast
- Benefits of budgetary control
- Cost estimation and standard
- The concept of contribution
- Relevant costing for decision making
- Cost classification and behaviour
- Budgeting principles and objectives
- Management involvement in budgets and standards
- Cost, profit or investment centres
DAY TWO
- Participation in budgeting
- How budgetary tools and techniques are being developed to fit with current business requirements
- Cost-volume-profit analysis
- The budgetary process checklist
- Budgetary slack
- The importance of effective business forecasting
- Applying budgetary and forecasting for greater business benefit
- Linking budgeting and forecasting to the wider disciplines of strategic and operational planning and consequently to performance measurement
DAY THREE
- Activity Based Costing (ABC)
- Activity Based Budgeting (ABB)
- Zero-based budgeting techniques (ZBB)
- Budget preparation and Monitoring procedures
- Variance analysis and investigation
- Risk Management and budgeting
DAY FOUR
- Preparation of cash budget
- Cash flow planning and control
- Distinction between profit and cash
- Interpretation of accounts
- Break-even models
- The published profit and loss account
- Exercise
DAY FIVE
- Budgeting capital expenditure
- Case study
- Techniques for evaluating capital projects:
- Net Present Value
- Payback method
- Discounted cash flow method
- Sensitivity analysis
