To ensure effective financial management of a department or and even the entire organization, there is the need to ensure compliance with the approved budget while operational costs need to be monitored and controlled so as to ensure financial discipline. Cost Control ï»¿training course will help participants to understand the main concepts and methodology around cost management and budgeting.

By the end of the course, participants will be able to:

• Define fixed and variable costs;
• Apply the essential concepts of accounting, budgets and finance;
• Establish strategic cost control;
• Recognise the importance of reducing unnecessary costs 
• Use best practices to create written budget justifications
• Locate guidance on budgeting for capital assets, and integrate performance budgeting into your organization’s budget formulation process.

Course Outline

• The key role of budgeting and cost control in contemporary organizations
• Towards a cross-functional process-view of the organization
• Financial vs. Managerial accounting (for decision making)
• Understand you processes: integrating financial and non-financial aspects
• Budgeting and Cost analysis
• Cost concepts and terminology
• Different costs for different purposes
• Fixed Vs Variable costs: the Cost-Volume-Profit analysis model
• Contribution Margin analysis
• Manufacturing vs. non-manufacturing costs
• Period Vs. Product costs: inventory evaluation and control
• Under-costing and over-costing: the consequences for profitability
• How to refine a costing system?
• Indirect (OH) Vs. Direct costs: Traditional Cost Allocations systems Vs. Activity-Based Costing (ABC)
• Cost hierarchy and Cost drivers
• Linking resources, activities and management
• Introducing Activity-Based Budgeting (ABB) and Management (ABM)
• Role of cost management in the business strategy
• Cost management and motivation
• Embedding cost control in the business
• Role of Finance in cost control