Decision Making By Using Budget & Cost Control


Decision Making By Using Budget & Cost Control

About The Course:

 Decision-making is a messy process using available data that may contain ambiguities and errors. It is important to know how costs behave so that realistic budgets and plans can be produced and appropriate financial resources made available. This seminar will challenge you to:

  • To identify the key ingredients in producing a successful financial business case
  • To give you the budgeting/financial skills required for better decision-making, whether for your continuing business or project or a new business venture
  • Identify sources of financial and business data that provide insights into business and financial strategies when converted to budgets
  • Use and build EXCEL spreadsheets for financial analysis: from the basics through complex models with Monte Carlo simulation


  • Successfully build an integrated planning, budgeting and reporting process
  • Understand costs behaviour more accurately
  • Deliver more timely and useful information to decision-makers
  • Understand capital budgeting
  • Identify & manage key financial indicators for the business
  • Be able to use specific cost analysis and performance measurement techniques
  • Be able to understand and implement the Balanced Scorecards
  • Be able to interpret the financial impact of strategic directions
  • Understand the problems of overheads allocation and how Activity-Based Analysis may aid decision-making and pricing strategies
  • Select the performance measurement systems that work
  • Think proactively beyond budgeting

Who Should Attend?

  • Those in charge for designing and managing a budgetary system
  • The staff person who will be responsible for entering data into the budget system or training others how to enter information
  • Those who want to gain control of the firm's financial standing and obtain a firm grasp on the numbers side of their job
  • Financial professionals, R&D professionals, sales/marketing professionals, general accounting professionals, business unit professionals
  • Anyone who wants to understand the basics of budgeting, costing and performance measurement.

Organizational Impact:

  • Encourages best and brightest managers to stretch themselves integrating budgeting and strategy
  • Provides opportunities for testing key assumptions of corporate/financial strategy within the budget process
  • Enhances organizational networks by developing and using the common language of business for resource allocation and performance assessment
  • Builds practical problem solving skills for immediate use including spreadsheets and model building
  • Improves recognition and implementation of financial management principles in budgeting and cost accounting

Personal Impact:

  • Personal life-long learning philosophy enhanced and clarified
  • Permits testing of financial impact of strategic direction
  • Builds financial and analytical skills in a complex and changing environment
  • Increased self-confidence with a higher level of humility (emotional intelligence) regarding financial relationships
  • Long lasting relationships built for future conversations and sounding boards


Introduction: The Relevance of Budgeting and Cost Management Within Strategy Execution  

  • The link between strategy, planning, budgeting and cost management
  • Why budgeting and costing are so important to manage your company
  • Towards a cross-functional process-view of the organization
  • Financial vs. Managerial accounting (where you get information for decision making)
  • Understand your processes: integrating financial and non-financial aspects
  • Identify and discuss the key issues in terms of budget/costing for your own organization
  • Discussion

The Budgeting Framework and its Role Within the Management Process  

  • The role of budgeting within management accounting
  • The value of budgeting in your company
  • Behavioral implications of budgeting
  • Key concepts and terminology
  • Advantages and disadvantages: critical issues to be discussed
  • Overview on the financial statements - Balance sheet, Income statement and cash-flow
  • Case discussion and examples

Cost Management for Budgeting Purposes  

  • Cost concepts and terminology
  • Different costs for different purposes
  • Fixed vs. Variable costs: the Cost-Volume-Profit analysis model
  • Contribution Margin analysis
  • Manufacturing vs. non-manufacturing costs
  • Period vs. Product costs: inventory evaluation and control
  • Case study and discussions

Case Study Day - Traditional vs. Advanced Techniques in Cost-control  

  • Under-costing and over-costing: the consequences for profitability
  • How to refine a costing system?
  • Indirect vs. Direct costs: Traditional Cost Allocations systems vs. Activity-based Costing
  • Cost drivers: linking resources, activities and management
  • Introducing Activity-Based Budgeting (ABB) and Management (ABM)
  • Case Study analysis
  • Examples and videos

Broadening the Performance Measurement Systems  

  • Shortcomings of traditional approaches to budgeting and performance measurement
  • Need to linking financial to operational issues
  • Recent best practices: the Balanced Scorecard and Six-sigma
  • Financial perspective, Customer perspective
  • Internal Business Process perspective, Learning and growth perspective
  • Developing and adapting the scorecard
  • Video, Case study illustration and discussion






A Certificate of Completion will be issued to those who attend & successfully complete the programme.


  08:30 – 10:15 First Session

 10:15 – 10:30 Coffee Break

10:30 – 12:15 Second Session

 12:15 – 12:30 Coffee Break

12:30 – 14:00 Third Session

 14:00 – 15:00 Lunch

Training Methodology:

This interactive training course includes the following training methodologies as a percentage of the total tuition hours:

  • 30% Lectures, Concepts, Role Play
  • 30% Workshops & Work Presentations, Techniques
  • 20% Based on Case Studies & Practical Exercises
  • 20% Videos, Software & General Discussions
  • Pre and Post Test


 The Fee for the seminar, including instruction materials, documentation, lunch, coffee/tea breaks & snack is: