course objectives:

The objective of the programme is to introduce the design and use of cost information in managerial decisions, accounting based performance metrics and their use in executive compensation.

Businesses often encounter financial difficulties as a result of either inadequate budgeting or errors within the compilation of the budgets. This course takes a practical approach to financial planning for the organization and considers: the compilation of budgets; how to identify potential problems arising and suggests actions which can be taken. It also looks at ways of improving financial control using budgets, so as to avoid reduced profits and/or financial problems. It also provides opportunities for participants to apply the course content to practical examples.

Course outline:

•  Basic concepts explained
•  Budget types
•  Analyzing variances and corrective action
•  Updating and Flexing the budget
•  Preparing the budgets and forecast
•  Budgeting to control costs
•  Cost classifications
•  Cost-volume-profit analysis (cost structure analysis)
•  Job order costing and Activity-based costing
•  Relevant costs for operating decisions
•  Standard costs and variances analysis
•  Transfer pricing
•  Performance measurement and evaluation
•  Stock options and executive compensations
•  Understanding budgets
•  Looking at numbers - full economic costs
•  Systems and culture
•  Building budgets
•  Making sense of variances
•  Managing and measuring budgetary performance
•  Action planning
•  Product costing and inventory valuation
•  Activity-based costing (ABC) and profitability analysis
•  Decentralization and transfer pricing
•  Performance evaluation and compensation: EVA, Balanced Scorecard, etc.
•  Budgeting and variance analysis