TRAINING BUDGETING, PLANNING & COST CONTROL

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TRAINING APLIKASI BUDGETING PLANNING AND COST CONTROL training Perncanaan Pendanaan dan Pengendalian Biaya di jakarta

Introduction:
Firms are established to manufacture products or to render services to
meet  consumers’  needs.  They do these by utilizing resources (labor,
materials,   various   services,   buildings,  and  equipment).  These
resources  need  to be financed, or paid for. To work effectively, the
people  in  a  firm  need  information  about  the  amounts  of  these
resources,  the  means  of  financing  them,  and the results achieved
through using them.

Budgeting   is   the   process  of  planning  the  activities  of  the
organization’s responsibility centers for the next period, usually the
next year. Budget is a plan expressed in quantitative (monetary) terms
covering  a specified period of time, usually one year. Many companies
refer  to  their  annual  budget  as a profit plan, since it shows the
planned  activities  that  the  company  expects  to  undertake in its
responsibility  centers in order to obtain its profit goal. The budget
serves as:
* An aid in making and coordinating short-range plans.
* A   device   for   communicating   these   plans  to  the  various
responsibility center managers.
* A  way  of  motivating  managers  to  achieve their responsibility
centers’ goals.
* A benchmark for controlling ongoing activities.
* A  basis  for evaluating the performance of responsibility centers
and their managers.
* A means of educating managers.

Management control’s purpose is to attain desired results. A budget is
a  statement  of  the  results  desired  as of the time the budget was
prepared.  A  carefully  prepared budget is the best possible standard
against  which  to  compare  actual  performance.  This  is because it
incorporate  the  estimated effect of all variables that were foreseen
when the budget was being prepared.

A  comparison of actual performance with budgeted performance provides
a  “red  flag”;  it  directs  attention  to  areas where action may be
needed.  An  analysis  of  the  variance  between  actual and budgeted
results may (1) help identify a problem area that needs attention, (2)
reveal  an  exploitable  opportunity  not  predicted  in the budgeting
process,  or  (3)  reveal  that the original budget was unrealistic in
some way.

Objectives:
1. Understand  the  principles  types of planning activities that are
part of the management control
process.Understand how to develop two main types of plans:
+ strategic (or long-range) plans and
+ budgets,   which  are  usually  annual  plans  structured  by
responsibility centers.
2. Learn  how  to evaluate company’s performance by using budget as a
tool for controlling.

Benefits:
Understand   the   budget’s  purposes  as  a  device  for  making  and
coordinating plans, for communicating these plans to those responsible
for  carrying  them  out,  for motivating managers at all levels, as a
benchmark for controlling ongoing activities, as a standard with which
actual  performance  subsequently  can  be compared, and as a means of
educating managers.

Who Should Attend:
Managers and supervisors in all areas.

Outline:
1. Budgeting :
+ Uses of the Budget
+ The Master Budget
2. The Operating Budget :
+ Project Budgets
+ Flexible (Variable) Budgets
+ Management by Objectives
3. Preparing the Operating Budget:
+ Organization for Budget Preparation
+ Budget Timetable
+ Setting Planning Guidelines
4. Preparing the Sales Budget :
+ Initial Preparation of Other Budget Components
+ Negotiation
+ Coordination and Review
+ Final Approval and Distribution
+ Revisions
5. The Cash Budget
6. Longer-Run Decisions :
+ The Capital Expenditure Budget Nature of the problem
+ General approach
+ Return on Investment
7. Estimating the Variables :
+ Required Rate of Return ; Economic Life
+ Cash Inflows ; Depreciation
+ Investment ; Terminal Value ; Non monetary Considerations
+ Summary of the Analytical Process ; Other Methods of Analysis
+ Internal Rate of Return Method ; Payback Methods
+ Unadjusted  Return  on  Investment  Method; Multiple Decision
Criteria
+ Costs of Capital
8. Reporting and Evaluation :
+ Control Reports ; Incentive Compensation, Standard Cost
+  Variable Costing Systems, Quality Costs, and Joint Costs
+ Production Cost Variances ; Analyzing Other Variances
9. Short-Run Alternative Choice Decisions :
+ The  Differential  Concept ; Cost Constructions For Various ;
Purposes
+ Classifications of Costs Differential Costs & Revenue
+ Contrast  with  Full  Costs  Contribution Analysis ; Types of
Costs
+ Alternative Choice Problems, Differential Costs
+ Types of Alternative Choice