ObjectivesHaving completed this seminar you should be able to:
- Understand strategic planning and decision-making framework
- Provide a strategic view of the business environment
- Understand and explain the nature and role of financial statements and their interpretation
- Understand accounting and finance terminology and use the necessary accounting and financial jargon to communicate effectively with the financial professionals
- Review the financial performance and financial position of an organisation using the appropriate financial means including trend analysis, industry and index analyses, ratio and break-even analysis techniques
- Develop operating and resource budgets
- Develop profit and cash flow budgets using traditional and activity based methods
- Assess the risk and uncertainty associated with alternative outcomes
- Use budgetary control to compare actual against planned performance and to identify corrective actions
- Evaluate investments in capital and long-term projects using PB, ARR, NPV and IRR appraisal methods
- Identify the features of the alternative sources of business financing
- Appreciate the important role of strategic accounting in business performance improvement.
Practical experienceUse of Video Cases; Written Cases; Simulations and Industrial Visits.
Entry requirements1st Degree of Equivalent Qualification
Academic titleDiploma - Postgraduate in Advanced Financial Accounting
Course description PROGRAMME OUTLINE
DAY 1 – Management and Cost Management Fundamentals: A Review of Key Cost Concepts
The accountant’s role in the organization
An introduction to cost terms and purposes
The use of cost management information
Creating cost-aware organizations
Review of some key cost concepts
Product vs. Period costs
Direct and Indirect Costs
Cost behaviour: Fixed and Variable Costs
Problems and Examples
DAY 2 – Different Approaches to Costing: Part 1
Absorption (Full) vs. Variable costing
Under-costing and over-costing: the consequences for profitability
How to refine a costing system?
Activity-based costing (ABC) and cost-management
Cost hierarchy & Cost drivers
Linking resources, activities and management
Introducing Activity-based management (ABM)
Linkages between ABM and ABC – monitoring value creation
Problems, Case Study and Examples
DAY 3 – Different Approaches to Costing: Part 2
Job-costing systems
Process costing systems
Cost allocation
Cost allocation: joint-cost situation
Transfer pricing
Problems, Case Study and Exercises
DAY 4 – Different Approaches to Budgeting
Fixed and flexed budget (static and flexible budget)
Rolling budget
Zero based budgeting
Activity based budgeting
Master budget
From costing to budget: interpreting variances (variance analysis)
Integrate continuous improvement into variance analysis.
Problems, Case Study and Exercises
DAY 5 – Cost Planning and Pricing Decisions: Life-Cycle-Costing, Target costing and Target Pricing
Linking process development to costing
Target costing, target pricing and its implications
The three major influences on pricing decisions
Distinguish between cost incurrence and locked-in costs
Cost plus approach to pricing
Life cycle product budgeting and costing to assist in pricing decision