Effective Cost Control Strategies
By the end of the program, participants will be able to:
- Prepare a cash budget consistent with the organization’s strategic plan.
- Use appropriate estimation techniques in the development of revenue and expense budgets.
- Identify all the appropriate costs to be included in a capital expenditure proposal.
- Apply cost control tools, analyze management variance reports and take proper corrective action.
Who should attend:
All managers, supervisors and analysts who prepare and/or use management budgets.
COURSE OUTLINE 1 Day
- 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