Duration: 5 days – 35 hrs
Overview.
Cost Management is a crucial aspect of organizational success, involving the strategic application of management accounting principles. This comprehensive training course delves into the concepts, methods, and techniques essential for effectively collecting, analyzing, and presenting data. By doing so, participants gain the critical information required to plan, monitor, and exert control over costs within an organization.
Objectives
- Differentiate the traditional and modern cost management techniques
- Understand various product pricing strategies
- Apply the cost management techniques for strategic decision making
- Apply the performance evaluation techniques by linking the critical success factors with the key performance indicator
Audience
- Financial controllers, finance managers, financial systems analysts, senior accountants, financial accountants, management accountants, general ledger accountants, assistant accountants, accounts receivable accountants, accounts payable accountants, payroll accountants
- Management and Decision-makers who rely on timely and accurate financial information
- Chief Financial Officers (CFOs), finance directors and strategic planners
- Finance Managers
- Project Managers
- Cost Accountants
- Decision Makers involved in budgeting and cost control
Pre- requisites
- Basic understanding of financial concepts (recommended but not mandatory).
These prerequisites ensure participants have a foundational awareness of financial principles, contributing to an effective and streamlined learning experience in the Cost Management Training Course.
Course Content
Module 1 – Introduction to Cost Management
- Cost Management Concept
- Traditional Cost Management
- Modern Cost Management
- Benefits of Modern Cost Management
Module 2 – Traditional Cost Management
- Product Cost Management
- Material Cost
- Employee Cost
- Overheard
- Job Costing
- Batch Costing
- Unit Costing
- Process Costing
- Limitations of Traditional Cost Management
Module 3 – Modern Business Environment
- Characteristics of Modern Business Environment
- Business Excellence Model
- Total Quality Management
- Supply Chain Management
- Business Process Reengineering
- Outsourcing
- Just-in-time
- Six Sigma Techniques
Module 4 – Modern Cost Management Techniques
- Cost Reduction
- Cost Control
- Target Costing
- Value Engineering
- Pareto Analysis
- Life Cycle Costing
Module 5 – Decision Making
- CVP Analysis
- Activity-Based Costing
- Theory and Principles of Product Pricing
- Sensitivity Analysis
- Pricing Strategies
Module 6 – Performance Evaluation
- Responsibility Accounting
- Critical Success Factors
- Key Performance Indicators
- Balanced Scorecard
- Performance Pyramid
- Building Block Model
Module 7 – Cost Control and Analysis
- Marginal Costing
- Contribution Margin
- Break-even analysis
- Margin of Safety
- Product/service cost under Marginal Costing
- Standard Costing
- Setting up of Standards
- Types of Standards
- Cost Variance
- Integration of Standard Costing with Marginal Costing
Module 8 – Budgets and Budgetary Control
- Introduction to Budgeting
- Budget setting process
- Flexible Budgets
- Functional Budgets
- Cash Budget
- Master Budget
- Zero Based Budgets
- Performance Budgets
- Behavioral Aspects
- Beyond Budgeting
- Q & A
- Closing and Remarks
