INTRODUCTION FOR COST ANALYSIS PLANNING & CONTROL TECHNIQUES
In today’s changing business condition with intense competition, there is a need for all employees to understand, plan and implement cost analysis and followed by cost control and cost reduction strategies.
Businesses that don’t control their costs don’t stay in business. Is everyone in your organisation sufficiently aware of costs, managing them effectively and maximising opportunities to reduce them? This training programme aims to help learners develop consummate skills of planning, analysis, control and cost management.
Who should attend: Professionals, Senior Managers, Managers, Senior & Junior Executives who had profit center responsibilities and all levels of employees who assist and implement cost analysis and cost control strategies.
COURSE OBJECTIVES
On completion of the programme, participants will be able to:-
- Being aware of importance of cost analysis and cost control at all times.
- Understanding techniques in managing performance through strategic cost management
- Seeking cost reduction from the start (including life-cycle costing)
- Understanding real budgeting techniques such as Activity Based Costing (ABC).
- Ensuring cost reports presented are led to action
- Managing a cost reduction process that delivers.
COURSE CONTENT
Introduction – the cost management process
- The risks of poor cost control
- Capital and revenue costs
- The importance of cost awareness
- The importance of cost reduction
- Cost management – the key aspects
- How to build a cost management and control process checklist for your areas of responsibility
- Case study: Performing cost analysis techniques.
Cost removal – taking out costs
- Costs of poor design / poor processes
- Value engineering
- Removing redundant costs
- Cost reduction culture
- The need for cost reports
- What measures can be used to identify over-spends as early as possible
- Cost control performance measures and ratios.
Cost Management : Variance Analysis tool
- Understanding essentials of variance analysis & how variances are calculated in cost management
- What causes cost variances?
Cost reduction process impact to the profitability
Understanding of cost
- Cost element classification
- Value Costing
- Costing methods and structure
- Identify firm’s cost drivers in Activity Based Costing (ABC)
- Different types of cost – fixed, variable
- Application to cost reduction strategies
