Management control and cost analysis

Objectives

The objective of the 2nd module in "Budgeting and Management Control" of the Financial Analysis for Non-Financial Professionals" programmeis to help participants understand the link between costs and corporate strategy. The course will present the classic notions of cost control by showing how managers and executives use real information in the business world. At the end of this module, the participant will be able to :

• Understand the objectives and added value of management accounting and of the
  business control and the link with corporate strategy
• Define the different cost categories in a company
• Determine the financial profitability by type of activity or product sold by
  the company
• Measure the cost of a product or any business activity: the cost of developing, producing, buying, selling, distributing, etc.
• Link the company's level of activity with the amount of costs
• Understand the impact of costs on pricing policy, investment decisions, value creation and product outsourcing policy.
• Master the tools of budgeting, dashboards and financial planning

Teaching Approach

The module will illustrate all the theoretical concepts seen in the course through real examples and practical cases. Continuous interaction with participants and the sharing of their experience will be emphasised. Finally, we will use Excel to apply the various tools.

Content | Budgeting and Management Control

Understand the different types of costs in a company and how they relate to the company's level of activity

• Fixed, variable and semi-fixed costs
• Direct and indirect costs
• Production and distribution costs

Understanding the difference between financial accounting and management accounting

Profitability analysis of a product, a service, an activity or a customer

• Cost allocation methods: traditional or ABC
• Definition of cost centres
• Link with corporate strategy
• Analysis of Variance

CVP analysis

• Calculating a break-even point, margin montribution or desired profit
• Link with corporate strategy

Budgeting Tools

Your Trainer

Next dates: 20 and 21 January 2025