Cost Management

Course details

Overview
Cost management is the process of identifying analysing and controlling the costs associated with a project or business operation. It involves budgeting forecasting and monitoring expenses to ensure that a project or business stays within its financial constraints. Effective cost management requires ongoing monitoring analysis and control. It is an essential part of project and business management as it helps ensure that resources are used efficiently and that projects and operations are completed within budget.

The objective of a cost management training course is to provide participants with the knowledge and skills necessary to effectively manage costs within an organisation. The course will cover a wide range of topics including cost accounting principles budgeting and forecasting cost control and reduction techniques and cost-benefit analysis. The course will also provide participants with practical tools and techniques that can be applied in the workplace to improve cost management processes and decision-making.

Objective

• Control and minimise costs: Identify areas where costs can be reduced and implement strategies to achieve this.
• Optimise the use of resources: Ensure that resources are used efficiently and effectively to achieve the desired outcome.
• Provide accurate financial information: Monitor and report on costs to ensure that accurate financial information is available to stakeholders.
• Improve decision-making: Provide accurate and timely information to support decision-making and ensure that resources are allocated to the areas that will generate the greatest benefit.
• Improve performance: Continuously monitor and improve performance by identifying and eliminating inefficiencies and waste.

Who Should Attend

• Cost Management training is beneficial for a wide range of professionals who are involved in managing costs within an organisation. Some common groups that may attend cost management training include:
• Project managers: Project managers need to understand cost management principles and techniques in order to effectively plan, budget, and control costs for their projects.
• Financial managers: Financial managers need to understand cost management principles and techniques in order to effectively plan, budget, and control costs for their organization.
• Operations managers: Operations managers need to understand cost management principles and techniques in order to effectively plan, budget, and control costs for their department or business unit.
• Procurement professionals: Procurement professionals need to understand cost management principles and techniques in order to effectively plan, budget, and control costs for the goods and services they purchase.
• Engineers: Engineers need to understand cost management principles and techniques in order to effectively plan, budget, and control costs for the projects they work on.
• Business Analysts: Business Analysts need to understand cost management principles and techniques in order to effectively plan, budget, and control costs for the projects or initiatives they are working on.

Course Outlines
Day 1: Introduction to cost management and cost accounting principles

• Understanding the role of cost management in an organisation
• Overview of cost accounting principles including variable and fixed costs direct and indirect costs and cost behaviour analysis
• Introduction to cost-volume-profit analysis and break-even point analysis

Day 2: Budgeting and forecasting

• Understanding the importance of budgeting and forecasting in cost management
• Techniques for creating and using budgets including zero-based budgeting and activity-based budgeting.
• Methods for forecasting costs including trend analysis regression analysis and Delphi technique.
• Introduction to rolling budgets and flexible budgeting.

Day 3: Cost control and reduction techniques

• Understanding the role of cost control in cost management
• Techniques for controlling costs including standard costing target costing and activity-based costing.
• Methods for reducing costs including process improvement outsourcing and re-engineering.
• Introduction to cost-cutting techniques such as cost-plus pricing and value engineering

Day 4: Cost-benefit analysis and decision-making

• Understanding the role of cost-benefit analysis in cost management
• Techniques for evaluating the financial impact of decisions including net present value internal rate of return and payback period.
• Methods for making cost-effective decisions including decision trees and sensitivity analysis
• Introduction to risk management and uncertainty analysis in cost-benefit analysis

Day 5: Tools and techniques for improving cost management processes and decision-making in the workplace.

• Understanding the importance of tools and techniques in cost management
• Introduction to cost management software and systems and cost management dashboards.
• Methods for using data and analytics to improve cost management processes and decision-making including data visualization and machine learning.
• Best practices for implementing and maintaining cost management processes and systems in the workplace.

Updated on 08 August, 2024