PLANNING & THE FUNCTIONS OF MANAGEMENT
- Strategic vs. long-term planning
- The four management functions
- Components of the strategic plan
- SWOT analysis
- Approaches to developing a budget
- Control is the weakest link!
- Leadership in management functions
- Change management in planning.
- Environmental Scanning
MASTER BUDGETING
- Budget development process
- Characteristics of successful budgeting
- Top 10 problems with budgeting
- Types of budgets
- Budget Monitoring and Control
- Master Budget Integration
- Budget Variance Analysis
BUDGETING: PROCESS AND APPROACHES
- The advantages of budgeting
- The budget process
- Rolling 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
- Performance Budgeting
- Budget negotiations and conflict resolution
- Behavioral Aspects of Budgeting
CAPITAL EXPENDITURE BUDGETING & 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
- Behavioral Biases in Investment Decisions
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
- Cost Structure Analysis
- Sensitivity Analysis
- Breakeven in Multiple Scenarios
- Target Profit Variations
- Contribution Margin Variability
FORECASTING TECHNIQUES
- Steps in developing forecast models
- Assumptions and Input Variables
- Time series methods
- Forecasting revenues and expenses
- Forecasting working capital
- Forecasting cash flow
- Creating a forecasted business model
- Performing what-if-analysis and scenario analysis
- Risk & Uncertainty in Forecasting
