Budget Preparation Skills

Budget Preparation Skills


Date & Location: (08-12/Apr) Kuala Lumpur – ( 04-08/March) Istanbul

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Course Overview


This course provides:

  • Identify the key factors required to understand business processes
  • Develop proper system of cost analysis for budgeting purposes
  • Master the budgeting and financial skills required for better decision-making
  • Identify sources of financial and operational data to support the budgeting process
  • Learn new best practices to manage organizational performance


Program Objectives:

  • Learn costing and budgeting terminology used in business
  • Understand the importance of a well-defined costing and budgeting process
  • Determine full costs of outputs for the goods and services provided
  • Master traditional techniques and recent best practices
  • Link finance and operation for budgeting purposes and strategy execution
  • Learn how to build a comprehensive performance measurement system


Who Should Attend?

  • The staff person who will be responsible for entering data into the budget system or training others how to enter information
  • Those who want to gain control of the firm’s financial standing and obtain a firm grasp on the numbers side of their job
  • Financial professionals, R&D professionals, sales/marketing professionals, general accounting professionals, business unit professionals
  • Anyone who wants to understand the basics of budgeting and costing


Program Outline:


Budgeting and Its Role Within the Management Process

  • The role of budgeting within management accounting
  • Linking costing and budgeting to strategy and performance measurement
  • The process of value creation: implications for budgeting
  • What is a budget and why costing is fundamental?
  • Budgets – the financial expression of the operating plan
  • Linking financial and operational issues
  • Behavioural implications of budgeting
  • Case discussion and examples


Costs Analysis for Budgetary Purposes

  • Costing for budgeting: Why?
  • Cost terms and purposes
  • Fixed and variable costs
  • Cost, volume, profit (CVP) relationships
  • The key concept of contribution margin
  • Direct and indirect cost – the allocation problem
  • Traditional methods versus activity based costing (ABC)
  • Case discussion and examples

 DAY 3

The Framework for Budgeting

  • Elements of the budgeting framework
  • Key concepts and terminology
  • Advantages and disadvantages: critical issues to be discussed
  • Overview of the financial statements
  • Balance sheet, income statement, and the statement of cash flows
  • Introducing cost analysis for decision-making
  • The importance of understanding full costs
  • Case discussion and examples


Flexed Budgets and Variance Analysis

  • Budgeting for management control purposes
  • Explain why standard costs are used in variance analysis
  • Describe the difference between a fixed budget and a flexed budget
  • Compute flexed budget variances and sales volume variances
  • How to interpret variance analysis
  • Integrate continuous improvement into variance analysis
  • Is budgeting enough?
  • Case discussion and examples


Beyond Budgeting: Broadening Performance Measurement Systems

  • Shortcomings of traditional approaches to budgeting and measurement
  • Linking financial to operational issues
  • Linking strategy to performance measurement
  • The balanced scorecard and six sigma
  • Financial perspective
  • Customer perspective
  • Internal business process perspective
  • Learning and growth perspective
  • Developing and adapting the scorecard
  • Case discussion and examples