Cost Analysis to Support Strategic Decisions (Master Level)

2 days workshop

INTRODUCTION

Cost control is one of the most effective and essential tool for planning and monitoring organizational activities, as well as supporting future strategic decision. Cost analysis is linked with strategy formulation, the budgetary process and performance management. It is crucial to interpret how costs behave so that realistic budgets and plans can be produced, and appropriate financial and non-financial resources can be made available to the business.

Real-current problematic costing cases will be analyzed and scenario solutions will be provided under the guidance of Dr. Steven Liew.

How Will You Benefit

Upon completion of this programmer, the participants will be able to Understand 

  • What is Standard Costing and why it is use.  

  • Know how to formulate and set Standard Costs 

  • Variance analysis for Material, Labor and Overhead Costs 

  • Identify methods to improve positive variances/ reduce negative variances

  • Understand the use of Standards in Budgets

  • How to add value to the bottom line

  • Enhance cost awareness and its relationship with strategy

  • Learning how to get from cost to strategy then to performance measurement

  • Broadening the management accounting knowledge

  • Deliver more timely and useful information to decision makers

  • Identify and manage key financial and non-financial indicators for the business

METHODOLOGY

Case Study, video & Group Discussion. Real-current problematic costing cases will be analyzed and scenario solutions will be discussed within the workshop

Who Should Attend?

This program is suitable for Accountants, finance/costing executives, accounting managers, cost accountants, cost analysts, budget analysts, non-financial managers especially operational managers, costing executives.

Special Feature: NOTE: Please bring laptop along

PROGRAMME OUTLINE

Key Contents

Day 1

Module 1: Standard Costing and Variance Analysis

  • Understand Why Standards Are Used

  • Understand What Is Included in Each Standard

  • Understand When Standards Should Be Changed

  • Understand What Happens When Standards Are Changed

  • Understand the Process of Variance Analysis for Material, Labor, and Overhead Variances

Module 2: Setting the standard

  • Understanding Ideal Standards and Practical Standards

  • Detailed look on how Standards are Formulated and set Using Various Methods.

  • Bill of Materials and Standard Costs Setting

Module 3: Practical Cost Control

  • Material

  • Labor

  • Overhead

Module 4: Material & Labor 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

  • Computation of Labor Wages Variance

  • Computation of Labor Rate Variance

  • Incorporation of Labor Variances into Product Standard Cost

  • Improving Labor Related Variances


Day 2

Module 5: Profit Planning and Activity-Based Budgeting (Interactive case study)

  • Operational Budget 

  • Financial Budget

Module 6: Successful Case Study: Cost Control

  • Target: RM 25 MIL COST REDUCTION per yr.

  • How do you approach it?  

Module 7: Cost Analysis for Pricing Decisions

  • Major Influences on Pricing Decisions

  • Cost-Plus Pricing

  • Determining the Markup: Return-on-Investment Pricing

  • Strategic Pricing of New Products

Module 8: Target Costing

  • Target Costing

  • Value Engineering and Target Costing

  • Competitive Bidding

Methodology

This stimulating program will maximizes the understanding and learning through lecture, discussion, case studies and practical activities

Practical Cost Reduction, Control & Budgeting Strategies

Winning Cost Management Strategies for Procurement

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