FI22
Course Contents
Module 1 -Strategic and Financial Planning
We will cover the strategic elements leading to better budgets.
Key Topics
- What comes before the financial numbers?
- Differences between Financial and Management accounting
- Changing Competitive Environment
- How strategy links to budgeting and costing
- The need for the strategic plan
- Mission, Vision, Goals
- Using Porters 5 Forces, SWOT and PESTLE
- Aligning budgeting to the Organizations strategy Case studies and exercises
Module 2 -Factors Affecting Budgeting and Cost Control
We will cover the manufacturing elements leading to better costing
Key Topics
- The Product Lifecycle
- Focus on customer satisfaction
- The Value Chain
- World Class Manufacturing
- Just In Time (JIT)
- Quality Management Systems
- Theory of Constraints
- Throughput Accounting
- Target Costing Case studies and exercises
Module 3 - Costing: From Traditional to Activity-Based
We will drill down into the details that make costing better
Key Topics
- Different types of costs
- Cost centers
- Full costing
- Absorption costing
- Marginal costing
- Standard Costing
- Break-even analysis
- Activity-based approaches
- Variance analysis
- Direct product profitability Case studies and exercises
Module 4 -Budgets and Variance Analysis
We will span the entire range of budgets
Key Topics
- What is budgeting?
- Planning, coordination and communication
- Types of Budget: Short, long, fixed, rolling, incremental, zero-based (ZBB), Kaizen
- The Master Budget
- Operating Budget
- Financial Budget
- Cash Budget
- The Human side of budgeting
- Sensitivity Analysis Case studies and exercises
Module 5 - Capital Budgeting and Investment Appraisal
We will cover the critical elements of capital budgets
Key Topics
- The time value of money
- Investment Appraisal Techniques:
- Net Present Value (NPV)
- Internal Rate of Return (IRR)
- Payback Period
- Exercises and case studies
- Beyond Pure Financial Budgeting
- Balance Scorecard
- Budgets and issues of motivation Case studies and exercises
