Effective Budgeting and Cost Control Skills Training

Dolphins Group - Book Now

Course Introduction
Modern businesses are an epitome of uncertainty and complexity. Over the period, this uncertainty and complexity in business has led to the development of various managerial tools, techniques and procedures useful in managing business successfully. Of all these, budgeting is the most common and widely used standard device for planning and control. This course provides fundamental understanding of budgeting, budgeting process and includes a practical guide for preparing and mastering financial budgets

Participants will explore the tools, concepts and techniques used by financial analysts. They will be guided through a practical and best practice approach to understanding budgets and financial reports. The end result will be a solid understanding of key finance and budgeting principles so that the participant can hold tangible discussions with relevant stakeholders, assess and create financial documents anddevelop reports that allow decision making based on financial data.

Why Attend

Planning and budgeting are must-have skills for all professionals regardless of their function or managerial level. This course covers the concept of budgeting as a planning tool, a financial device and a control mechanism. In addition, it provides the necessary application of long and short-term planning decisions.

After completing this course participants are conversant with:

  • Overview of budgeting
  • Different types of budgets
  • Different approaches to budgeting
  • The process of preparing budget and budgetary control
  • Understand financial terminology and concepts clearly
  • Gain skills to analyze financial statements
  • Understand the differencesbetween budgets & budgeting
  • Be able to implement techniques for effective budgeting
  • Be able to apply advanced forecasting techniques
  • Discover how to make smart purchasing decisions
  • Interpret some of the legal aspects of finances
  • Defend the importance of linking an organization’s budget with its strategic plan
  • Demonstrate how the budget relates to the key financial statements: balance sheet, income statement, and cash flow
  • Prepare the key elements of an operating and capital budget and evaluate the different budgeting approaches used
  • Apply cost control tools, analyze management variance reports and take proper corrective action
  • Calculate different capital budgeting evaluation techniques as included in a capital expenditure proposal
  • Utilize cost-volume-profit analysis in making budgeting decisions


Course Level
Basic & Intermediate Level


Program Outline

Overview of budgeting

  • The basic concepts of budget and budgeting
  • Budgeting and forecasting
  • Budgeting and management
  • Budgeting and planning
  • Budget procedures and budget administration

Types of budgets

  • The components of operating budget like sales budget, production budget, production cost budget, ending inventory budget, cost of goods sold budget, selling expenses budget, administrative expenses budget and budgeted income statement
  • The components of financial budget like capital expenditure budget, cash budget, budgeted balance sheet, and cash flow budget

Approaches to budgeting

  • The various approaches to building budgets like – fixed budgeting approach, flexible budgeting approach, incremental budgeting approach, kaizen budgeting approach, zero base budgeting approach and others.
  • The distinctive features of each approach to budgeting.


Preparing a budget

  • The preparation of operating budgets
  • The preparation of financial budgets

Budgetary control

  • The basic concepts of budgetary control
  • The process of budgetary control
  • Budgetary variance

Planning and the functions of management

    • The critical functions of management
    • Aligning the budget with the organizations strategy
    • Road map to strategy
    • Budget as a planning tool
    • Control: the missing link
    • Planning pitfalls

The key financial statements

    • The accounting system
    • The income statement
    • The balance sheet
    • The cash flow statement

Budgeting: process and approaches

    • The advantages of budgeting
    • The budget process
    • Rolling budgets
    • The master budget
    • Operating and capital budgets
    • The budgeted financial statements

Approaches to budgeting:

      • Incremental budgeting
      • Zero based budgeting
      • Flexible budgeting
      • Kaizen budgeting and continuous improvement
      • Activity based budgeting

Tools of forecasting

    • Direct and indirect costs
    • Characteristics of an effective budget
    • Problems in budgeting

Cost control

    • Budget as a control tool
    • The control process
    • Characteristics of an effective control system
    • Responsibility reporting
    • Variance analysis: identifying the components of variance
    • Variance analysis: taking the corrective action

Capital expenditure budgeting and analysis

    • Time value of money
    • Simple versus compound interest
    • Identifying and analyzing cash flows
    • The discount rate: using cost of capital
    • Net Present Value (NPV)
    • Internal Rate of Return (IRR)
    • Profitability Index (PI)
    • Pay-Back Period (PBP)
    • Accounting Rate of Return (ARR)
    • Approval for Expenditure (AFE)
    • Sensitivity and risk analysis

Cost-Volume-Profit analysis (CVP)

    • Identifying the fixed costs and variable costs
    • Computing breakeven point in units
    • Computing breakeven point in sales
    • Assumptions of CVP analysis
    • Using CVP in budgeting decisions


Dolphins Training & Consultants ltd

View Park Towers 10th Fl ,Utalii Lane /
L584-off UN Avenue, Gigiri.
P O Box 27859 00100 Nairobi, Kenya
Tel +254-20-2211362 /4/5/382

Fax +254-20-2211386



Your No.1 Corporate Training Partner-NITA No.711