BTS

All business decision-making involves analyzing situations containing varying degrees of risk, and the available data may be erroneous containing ambiguities and errors. It is important to understand how costs behave so that realistic plans can be produced and appropriate financial resources made available.

The Training Course Will Highlight ?

In this course you will learn how to:

Identify the principal factors required to produce a successful business case
Develop budgeting and financial skills required for better decision-making
Identify sources of financial and business data to support the budgeting process
Learn new techniques and methodologies to simulate typical business scenarios

Training Objective

By the end of this course, delegates will be able to:

Understand the importance of a well-defined budget process
Learn costing and budgeting terminology used in business
Master techniques for cost-benefit analysis
Learn how to construct profit, cash and balance sheet plans and budgets
Learn how to evaluate variances from plan and identify corrective actions
Understand discounted cash flow (DCF) techniques and their application to financial decision making

Target Audience

Financial personnel who need to evaluate plans for approval and variance reports for corrective action and those who need to improve their skills in constructing and controlling a budget, Anyone from non-financial discipline, needing to evaluate proposed business expenditure decisions and who need to know more about the budgeting process, plan, cost and budget during their business careers

Training Methods

Daily Agenda

The Need for Financial Control in Business

Understanding accounting
Management accounting versus financial accounting
Cost behaviors in Cost-Volume-Profit scenarios
Breakeven and targeted net income scenarios
Business cases with master budgets
Benefit-cost analysis

Capital Costs and Investment Appraisal

Estimating cash flows within the business system
Understanding Net Present Value (NPV) and Internal Rate of Return (IRR)
Defining the approval criteria and review process
Post-implementation audits of capital projects
Sensitivity analysis and uncertainty
Monte Carlo simulation techniques in budgeting

Cost Volume Profit Analysis

Identifying relevant costs in complex decisions
Complex applications of analysis
Multiple products and services
Evaluating before and after implementation
Special sales orders and segment analysis
Make or buy decisions

Full Costing, Marginal Costing and Activity Based Costing

Comparing full and marginal costing
Direct and indirect costs in budgeting for decision making
Role of costs in pricing strategies
Overhead allocation methods and difficulties
Variance analysis of materials, labor, and overhead in manufacturing and services
Activity Based Costing (ABC) in manufacturing and services

Budget Construction and Control