Course Details
Course Outline
5 days course
Introducing the Linkages Between Strategy and Costing
- Managing contemporary organisation
- Strategic Plan, Budgeting, Costing and Management Control
- Management Accounting for organizational control systems
- Responsibility accounting and the process-view
- The context for costing
- The Budget and its role for achieving organizational targets
- What is it the situation in your organisation?
Cost Analysis and Classifications
- Cost terms and classification
- Inventoriable vs. period costs
- Manufacturing vs non-manufacturing costs
- Variable vs. Fixed costs (CVP analysis)
- Direct vs. indirect cost
- Under-costing and Over-costing problems
- Problems and Examples – Case study illustration
From Cost Accounting to Management Control
- Cost allocation: traditional costing and activity-based costing (ABC)
- From traditional budgeting to Activity-based budgeting (ABB)
- Activity-based management
- Decentralized organizations
- Cost/Profit/Investment centers
- Transfer-pricing issues
- Problems and Examples – Case study illustration
Flexible Budgets and Variance Analysis
- The features of budgetary control
- Define the master budget and explain its major benefits to an organization
- Describe the difference between a static budget and a flexible budget
- Compute flexible-budget variances and sales-volume variances
- Explain why standard costs are often used in variance analysis
- Integrate continuous improvement into variance analysis
- Case study, problems and exercises
Linking Strategy to Actions: Beyond Costing
- Shortcomings of traditional approaches to measurement
- The Balanced Scorecard: linking Strategy to Performance Measurement
- Financial perspective, Customer perspective
- Internal Business Process perspective, Learning and growth perspective
- Developing and adapting scorecard
- Case study illustration
