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Cost Control Management
COURSE TYPE : [ ADVANCED ]
COURSE DURATION2 Days
 
 
 
 
 
  

DAY 1 Session 2                  

 

14:00   Tax and Cost Schedules

Gain insight into tax benefits from a sound cost accounting model.   What are the international accounting rules and how are they applied for compliant cost reporting.

 

15:00   Coffee Break

 

15:15   Funding Costs & Leverage

Look at various methods of funding costs, understand how to sweep debt between physical reporting periods and the effects of cost transference on the net present value of projects.

 

16:15   Coffee Break

 

16:30   Cost Risk Measurement

Look at market, credit, operational risk as a reserve expense.  How to statistically generate a VaR model for estimating potential loss is discussed.   Why is risk management important from a cost accounting perspective will be discussed.   How to build a model to forecast potential losses will also be shown.  Spreadsheet examples will be given to explain this complex topic in an easy to follow manner.   Understand how to price risk in business delivery and understand the effectiveness of control improvement and insurance for cost reduction.

  

 

 

DAY 1 Session 2                   

 

14:00   Tax and Cost Schedules

Gain insight into tax benefits from a sound cost accounting model.   What are the international accounting rules and how are they applied for compliant cost reporting.

 

15:00   Coffee Break

 

15:15   Funding Costs & Leverage

Look at various methods of funding costs, understand how to sweep debt between physical reporting periods and the effects of cost transference on the net present value of projects.

 

16:15   Coffee Break

 

16:30   Cost Risk Measurement

Look at market, credit, operational risk as a reserve expense.  How to statistically generate a VaR model for estimating potential loss is discussed.   Why is risk management important from a cost accounting perspective will be discussed.   How to build a model to forecast potential losses will also be shown.  Spreadsheet examples will be given to explain this complex topic in an easy to follow manner.   Understand how to price risk in business delivery and understand the effectiveness of control improvement and insurance for cost reduction.

 

 

DAY 2 Session 1                  

  

08:30   Typical Cost Reduction

Look at the key areas for cost reduction, including resource management, financing, sell/lease, equivalent funding, process consolidation and many more case studies for different areas of the business. 

 

09:30   Outsourcing Models

Gain insight into how to evaluate outsourcing models, learn how to price such services and to benchmark against existing and projected cost models.

 

10:30   Coffee Break

 

10:45   Cost Effective Procurement

Look at the best practice approaches for Procurement, learn how to set Procurement policy and to keep such processes competitive.  Review approaches for managing Procurement contracts to share liability and reduce risk cost.

 

11:45   Hedging Cost Risk  

Look at methods to reduce costs and losses through hedging instruments.   Learn how to manage such exposures in an ongoing manner.

 

11:45   Coffee Break

 

12:00   Cost Centre vs Profit Centre

Look at the key methods for converting a cost centre into a profit centre, by increasing revenues to reduce costs.

 

 

 

DAY 2 Session 2                  

   

14:00   Cost Efficiency & Capacity

Understand variance analysis and how to calculate sales volume, mix and pricing variances into cost models.  Add this structure to the main cost map framework.  Learn about capacity utilisation and target cost models.  Gain insight into transfer pricing and the implications of inter-divisional product pricing.  Learn how to apply such reports to a uniform tax code.

 

15:00   Coffee Break

 

15:15   Audit and Cash flow

Extend the cost map framework, so that expenditure processes can be easily audited, policy deviation tracked and how exceptions should be managed.  Learn how to complain cash flow and cost accounting

 

16:15   Coffee Break

 

16:30   Incremental Cost Analysis

The course will finish by bringing all the topics together and show at a top level the impact to WACC for cost variance, how to apply the analysis model to production units, service units and product division.  Learn about Scarce Resource Analysis and long inventory classes/cost of carry.

 

17:30   Day Two Complete

 

 

 

OBJECTIVE

It is very common for business to be overly focused on revenue streams without giving the same emphasis of care on their cost control framework.  This is a balanced course that looks at the dynamics/function between the two. It highlights best practice methods for reducing costs without hampering revenue streams and it looks at various ways to scale up/down to reach economies of scale.    This course should be seen as a practical course with plenty of case studies and spreadsheet models but none the less theoretical accounting is treated.

 

  • Understand how to build a real time cost map
  • Common pitfalls in budgetary process
  • Best practie insight into cost reduction
  • How to build profit centres from cost centres
  • Gain complete overview into the effects of cost leverage

 

 

THE COST FUNCTION

Gain insight into the cost function of your business model, what are the effects of additional output on the cost structure.   Understand how to build a cost map benchmark system for the enterprise.

 

 

PROFIT CENTRE FOCUSED

How can the business leverage off its fixed cost model to enhance revenues, how can it use financial instruments to improve net present value of the firm & how costs are reduced via better procurement practices.