Effective Budgeting and Cost Control

Why Attend

Planning and budgeting are must-have skills for all professionals regardless of their function or managerial level. This course covers the concept of budgeting as a planning tool, a financial device and a control mechanism. In addition, it provides the necessary application tools required to making long-term and short-term planning decisions.

Course Methodology

This course focuses on exercises, case studies, and individual and group presentations.

Course Objectives

By the end of the course, participants will be able to:

  • Defend the importance of linking an organization’s budget with its strategic plan
  • Demonstrate how the budget relates to the key financial statements: balance sheet, income statement, and cash flow
  • Prepare the key elements of an operating and capital budget and evaluate the different budgeting approaches used
  • Apply cost control tools, analyze management variance reports and take proper corrective action
  • Calculate different capital budgeting evaluation techniques as included in a capital expenditure proposal
  • Utilize cost-volume-profit analysis in making budgeting decisions

Target Audience

All managers, supervisors and analysts who prepare or use management budgets.

Target Competencies

  • Interpreting financial statements
  • Planning and budgeting
  • Cost control
  • Capital budgeting
  • Applying cost-volume-profit analysis
  • Utilizing breakeven analysis

Location:

South Africa

Training Dates:

Each course starts every Monday of each week. Please book your training on a date that is a Monday.

Course Duration:

Unit Standard:

NQF Level:

Number of Credits:


Course Fees

Note: Please fill in the online application form on the left or bottom if this page to receive a quotation with detailed pricing from AATICD.

How to Apply:

To Apply Simply Fill in the Online Enquiries / Applications form on the Right Sidebar or Bottom of this website https://www.aaticd.co.za

NB:

When filling the online application form; please take note of your desired Training Month, Duration in Weeks and Training Session. This will give us the exact dates you will be attending your classes.

Also note that Tuition Fees must be paid upfront on or before training start date. This is to ensure that all resources are made availabe for you before you start. You will not be allowed into training if fees are not paid and verified.

Also note that Tuition Fees Cancellations must be made 14 business working days before the starting date of training. This will allow us to do a 50% refund of the total amount paid. If cancellations are made thereafter note that no refund will be made to delegates.

Tuition Fees include teas and lunch as well as either a laptop or tablet which a delegate will take home free of charge.

Tuition Fee DOES NOT include Accommodation, Dinners and other Extra Curricular Activities or Incidentals. Delegates are expected to fund this on their own. AATICD will not be held accountable for any incidents to delegates.

In-House Trainings are also available for 3 or more delegates for any duration. Please consult with our Administration for such In-House training bookings.


Course Outline

  • Planning and the functions of management
    • The critical functions of management
    • Aligning the budget with the strategy of the organization
    • Road map to strategy
    • Budget as a planning tool
    • Control: the missing link
    • Planning pitfalls
  • The key financial statements
    • The accounting system
    • The income statement
    • The balance sheet
    • The cash flow statement
  • Budgeting: process and approaches
    • The advantages of budgeting
    • The budget process
    • Rolling budgets
    • The master budget
    • Operating and capital budgets
    • The budgeted financial statements
    • Approaches to budgeting:
      • Incremental budgeting
      • Zero based budgeting
      • Flexible budgeting
      • Kaizen budgeting and continuous improvement
      • Activity based budgeting
    • Tools of forecasting
    • Direct and indirect costs
    • Characteristics of an effective budget
    • Problems in budgeting
  • Cost control
    • Budget as a control tool
    • The control process
    • Characteristics of an effective control system
    • Responsibility reporting
    • Variance analysis: identifying the components of variance
    • Variance analysis: taking the corrective action
  • Capital expenditure budgeting and analysis
    • Time value of money
    • Simple versus compound interest
    • Identifying and analyzing cash flows
    • The discount rate: using cost of capital
    • Net Present Value (NPV)
    • Internal Rate of Return (IRR)
    • Profitability Index (PI)
    • Pay-Back Period (PBP)
    • Accounting Rate of Return (ARR)
    • Approval for Expenditure (AFE)
    • Sensitivity and risk analysis
  • Cost-Volume-Profit analysis (CVP)
    • Identifying the fixed costs and variable costs
    • Computing breakeven point in units
    • Computing breakeven point in sales
    • Assumptions of CVP analysis
    • Using CVP in budgeting decisions