Budgeting & Variance Analysis Modeling for Accountant

2 days workshop

Introduction:

Is your organization budget still valid & reliable? This practical budgeting course will assist you to revisit the way budgeting is being done and ways to improve and create values for your organization. Many budgeting case studies will be used to highlight the importance of using your financial statement to achieve your budget target. 

The Standard cost accounting & Variance Analysis Modeling can help the senior management as well as the executives in knowing more about the finer aspects of cost accounting and then implementing the same for better productivity as well as profit margins. Real-current problematic budgeting & costing cases will be analyzed and scenario solutions will be provided under the guidance of Dr. Steven Liew

Course Objectives

Participants will be able to:

  • Revisit your organization vision & mission to be relevant in today’s competitive environment.

  • Devise ways to achieve your budget targets

  • Plan how to achieve optimum profitability under budget constraints

  • Consider the basis for deciding whether to proceed or reject the project proposal 

  • Formulating the Cost Reduction Strategies for Your Organization Costs

  • Understanding the tracking Cost Control Using Key Performance Indicators (KPI)

  • What is Standard Costing and why it is use.  

  • Know how to formulate and set Standard Costs 

  • Variance analysis for Material, Labour and Overhead Costs 

  • Identify methods to improve positive variances/ reduce negative variances

  • Understand the use of Standards in Budgets

METHODOLOGY

Case Study & Group Discussion. Real-current financial issues & cases will be analysed and scenario solutions will be discussed within the workshop.

WHO SHOULD ATTEND

Accountants, CFO, Business Managers, Finance Managers, Supervisors, Managers and All Professionals Who Are Interested in Managing Budgeting & Variance Analysis Cost control     

Special Feature:

NOTE: Please bring laptop along

Course outline

Day 1

Module 1: Converting Business Plan & Key Performance Indicators into Budgets

  • CEO Vision & Mission

  • KPI (Dept & Individual)

Module 2: Profit Planning and Activity-Based Budgeting (Exercise)

  • Operational Budget 

  • Financial Budget

Module 3: Linking the Budget to Management Actions

  • What are Essential Considerations Before Preparing the Budgets

  • How to Present a More Accurate & Realistic Budget

  • How to Get Cooperation from Operating Units

  • How to Convince or Find Out Easier Solution for Other Staffs to Understand /Follow on Budget Being Prepared

  • How to Avoid Unexpected Results or Uncertainties

  • How to Measure Performance

  • Discuss the Planning Budgeting Strategies for Management

Module 4: Project Based Budgets (Case Study)

  • Calculation of operating cash flow

  • Calculation of Project payback period, profitability index, IRR & NPV of the project? 

  • Basis for decision on proceeding or rejecting the project proposal 


Day 2

Module 5: Material Variance Analysis

  • Understand Material Price Variance and how-to Computer.

  • Understand Material Usage Variance

  • Material Rejects and Costing into Product Standard Cost

  • Investigation and Improvement into Material Related Variances

Module 6: Labor Variance Analysis

  • Computation of Labor Wages Variance

  • Computation of Labor Rate Variance

  • Incorporation of Labor Variances into Product Standard Cost

  • Improving Labor Related Variances

Module 7: Overhead Variance Analysis

  • Computation & Understanding Variable Overhead Variance

  • Understanding Variable Overhead Efficiency Variance

  • Understanding Fixed Overhead and Volume Variance

Module 8: Case Study: Success Story of Cost Reduction

  • How to target saving for your organization

MANUFACTURING COSTING FOR NON-COSTING MANAGERS

0