Principles of Budgeting and Cost Control

• The Critical Functions of Management
• Control: The Missing Link

Linking the Tactical Budget to Strategic Objectives

• The Strategic Planning Process
• Budget as a Planning Tool
• Aligning the Budget with the Organization's Strategy

Types of Budgets

• The Master Budget
• Operating and Capital Budgets
• The Budgeted Financial Statements

Approaches to Budgeting

• Incremental Budgeting
• Zero-Based Budgeting
• Fixed Budgeting and Flexible Budgeting
• Kaizen Budgeting and Continuous Improvement
• Activity-Based Budgeting

Budgeting and Costing Techniques

• Break-Even Analysis
• Use of Standards in Budgeting
• Different Forecasting Methods
• Trend Analysis and Cost Estimation
• Characteristics of an Effective Budget

Project Budgeting

• Planning for Projects
• Direct and Indirect Project Costs

Capital Expenditure Budgeting and Analysis

• Time Value of Money
• Simple versus Compound Interest
• Identifying and Analyzing Cash Flows
• Using Cost of Capital or Required/Desired Rate of Return
• Net Present Value (NPV)
• Internal Rate of Return (IRR)
• Profitability Index (PI)
• Pay-Back Period (PBP)
• Accounting Rate of Return (ARR)
• Approval for Expenditure (AFE)
• Sensitivity and Risk Analysis

Cost Control and Management Budget Reports

• Budget as a Control Tool
• Approaches to Cost Control
• Characteristics of an Effective Control System
• Understanding the Need for Timeliness and Precision
• Variance Analysis: Identifying the Components of Variance
• Variance Analysis: Taking the Corrective Action
• Problems in Budgeting