Management Accounting Fundamentals

Course Objectives

The objectives of the course are to

• Explain the basic principles of Budgeting
• Provide participants with an understanding of the aspects of Financial Decision making

Following completion of the two-day Programme, participants will be able to

• Communicate the Budget to colleagues and explain the importance of Budget targets
• Provide effective  input to Financial Decision Making within their organisations
• Engage in discussions with financial colleagues to drive performance initiatives.
• Understand and contribute to their in-company budgeting process

Target Audience
This course is suitable for anyone that wants to understand the language of Finance and wants to contribute to financial decision making within their organisation.

Course Content

Introduction to Management Accounting
Cost Volume Profit Analysis
Overhead Allocation Methods

Costing of Overheads
Standard Costing
Activity Based Costing

The Budgeting Process
The Budgeting Cycle
Overhead Allocation Exercise
Overhead Recovery Exercise
Direct Product Profitability Exercise
Customer Account Profitability Exercise

Investment Appraisal Methods
Payback
Net Present Value (NPV)
Internal Rate of return (IRR)

Performance Analysis
Principles of Variance Analysis
Variance Analysis Example
Total Materials Variance
Price Variance (PPV) Exercise
Usage Variance (Yield and MUV) Exercise
Total Direct Wages Variance
Rate Variance Exercise
Efficiency Variance Exercise