Effective Costing, Cash Flow Management and Budgetary ControlFinancial Management

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.

Key Takeaways

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

Who Should Attend

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.

Programme Outline

Module 1:Overview of Cost and Management Accounting

• Differences Between Financial Accounting and Management Accounting
• Costing Concepts and Purposes

Module 2: Differences Between Marginal Costing and Absorption Costing

• Gross Profit Concept
• Contribution Margin Concept

Module 3: Budgeting and Variance Analysis

• Interpretation of Material Variance
• Interpretation of Labour Variance
• Investigation of Variance

Module 4: 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

Module 5: Cash Flow versus Profit

• Definition of Profits
• Subjective Judgments Influencing The Profit Figures
• Accounting Rules Explained
• Accrual, Matching and Prudence Concepts

Module 6: Linking the Financial Statements

• The Link between the Three Financial Statements
• Balance Sheet, Profit and Loss Account and Cash FlowStatement.
• Structure of Cash Flow Statement
• Operating Activities, Investing Activities and Financing Activities
• Preparing The Cash Flow Statement

Module 7: 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

Module 8: 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

Module 9: Cash Flow Strategy for Business

• Key Consideration in Cash Flow Management
• Factors to be Considered When Designing an Effective Cash Flow System

Methodologies

Presentation, interactive discussion, individual exercises, case studies and group activities.

Note: Each participant needs to bring a calculator for this course.

Programme Trainer

Lim Kaim Soon is a corporate trainer specialising in accounting and financial management.His past appointments include careers in financial control and general management in the banking, insurance, retail and manufacturing industries. He has held management positions as a Financial Controller and a Director for manufacturing companies. He was also in-charge of the group and subsidiaries’ accounting, finance, and investing projects and management, including reporting to the board and statutory bodies in Singapore, Malaysia, Hong Kong, Indonesia.

He holds a Bachelor degree (honours) in Business Administration from the National University of Singapore majoring in finance and investment. He is a fellow member of the Chartered Association of Certified Accountants, UK and has obtained his MBA at the Helsinki School of Economics, Finland.