Effective Costing, Cash Flow Management and Budgetary Control

MDIS


Course introduction

A company cannot plan unless it understands its costs. By understanding the various facets of the cost accounting process, Managers and Executives will be able to create an efficient cost analysis system to better control and measure an enterprise's business functions and bottom line.

This seminar is designed to discuss the main features of cost and management accounting and its applications in a business enterprise. It is essential for Managers and Executives of a firm to know how cost accounting information can be organised, so that quality decisions could be made. As the focus is on decision making process, participants would not be required to understand the bookkeeping process and the preparation of financial statements.



Course Benefits


Upon completion of this workshop, participants will be able to:

  • Have an overview of cost and management accounting
  • Learn the differences between marginal costing and absorption costing
  • Understand budgeting and variance analysis
  • Learn the application of costing in business decision making
  • Know how to apply various analytical techniques to make quality decisions



Target Audience


Managers and Executives who do not work in accounting but who need to know how basic accounting work and apply accounting related techniques when making business decisions.



Course Outline


Overview of Cost and Management Accounting

  • Differences Between Financial Accounting and Management Accounting
  • Costing Concepts and Purposes
Differences Between Marginal Costing and Absorption Costing
  • Gross Profit Concept
  • Contribution Margin Concept
Budgeting and Variance Analysis
  • Interpretation of Material Variance
  • Interpretation of Labour Variance
  • Investigation of Variance
Application of Costing in Business Decision Making
  • Cost Volume Profit Analysis
  • Acceptance of Special Order
  • Make-or-Buy Decisions
  • Closing or Continuance of a Section or Product
  • Activity Based Costing
Cash Flow Versus Profit
  • Definition of Profits
  • Subjective Judgments Influencing The Profit Figures  - Accounting Rules Explained – Accrual, Matching and Prudence Concepts
Linking The Financial Statements
  • The Link between the Three Financial Statements - Balance Sheet, Profit and Loss Account and Cash Flow Statement.
  • Structure of Cash Flow Statement – Operating Activities, Investing Activities and Financing Activities
  • Preparing The Cash Flow Statement
Analysing Business Performance
  • Using The Published Financial Statements of Listed Companies, This Session Demonstrates and Interprets The Financial and Operating Performance of These Enterprises in terms of:
  1. Profitability
  2. Liquidity
  3. Sustainability
  4. Investment Value
Cash Flow Budgeting
  • Planning and Developing an Annual Budget
  • Forecasting and Projection of Future Activities – Operating, Investing and Financing Preparing Operating Activity Budgets
  • Preparing Cash Flow Budget
Cash Flow Strategy for Business
  • Key Consideration in Cash Flow Management
  • Factors to be Considered When Designing an Effective Cash Flow System



Available Course Sessions


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Trainer Profile


Lawrence Poh

All of our Associate Trainers offer our high level of service therefore are subject to regular peer assessments and interview prior to joining our Institute. They must all be qualified and have relevant experience to an agreed level and are subjected to continual audit and evaluation. Strict internal assessment is implemented as an integral part of our quality control mechanism.



 

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