FUNDAMENTALS
OF COSTING &
BUDGETING
(NOTE: CALCULATOR REQUIRED)
Presented by Mr. Gerald Perries
INTRODUCTION
In today’s competitive business environment, an organisation’s pricing strategy can be a critical factor that
can make the difference between success and failure.
Organisations that are cost efficient would have a clear competitive advantage, therefore accurate and
timely cost information can go a long way in helping these organisations become successful.
Organisations also need to control their cost through effective budgeting and variance analysis. This will
enable them to quickly take corrective action and steer the organisation back on track.
By the end of this course, participants should be able to:COMPREHEND
• The nature and purpose of Costing and Budgeting
• The different types of Costing systems and techniques
• How Costing information can be used in decision making
• The use of Budgets as a control tool
DEVELOP
• The skills in determining the cost of products and services.
• Pricing policies to become competitive
• The skill in Budgeting and investigating variances.
APPRECIATE
• The usefulness and limitations of Costing information.
Date
Time
Venue
: 2 days
: 9.00 am to 5.00 pm
: The Coronade Hotel KL
Organised by
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TRAINERS’ PROFILE
Mr. Gerald Perries
BSc. Finance MSc. Administration
GERALD PERIES received his Masters in Business Administration and Bachelor of Science Degree in
Finance from Southern Illinois University, U.S.A.Gerald has over 12 years experience in training and
lecturing for various business organisation and private colleges. His areas of expertise are in Finance and
Accounting.
Gerald combines a wide range of practical and hands-on training experience in a challenging and
interactive environment.At present he regularly conducts training programs on effective cash flow
management, investment decision making, costing skills, fundamentals of financial accounting and
accounting for non-accounting staff. He is also actively involved in lecturing on several M.B.A. and Degree
programs, affiliated with Edith Cowan University, University of Ballarat, University of Sunderland,
Northumbria University and several other universities.
Prior to this, he served as a Finance Manager for a large engineering company for several years where he
was responsible for making investment, costing financing and working capital decisions.
His specific duty among others was:Evaluating the viability of long-term projects and making appropriate recommendations to the board of
directors.
Costing for Projects
Sourcing for appropriate financing upon approval of projects
Preparing the budgets for projects, ensuring compliance and investigating any deviations
Managing the day to day running of the finance department.
WHO SHOULD ATTEND
Accounts Clerks, Accounts Assistants, Accounts Supervisors,
Costing Clerks, Costing Assistants, Costing Supervisors,
Production Supervisors, Administrative Assistants,
New Accounting Personnel,
Non-Financial Executives & New Financial Executives
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Course Outline
DAY 2
DAY 1
9.00 am
INTRODUCTION
•
•
•
What is Costing?
Classification of Costs
Costing systems and techniques
•
•
•
•
ABSORPTION COSTING
•
•
•
•
SESSION 1
MARGINAL COSTING & DECISION
MAKING
Allocation & apportionment of overheads
Dealing with service department cost
Determining selling price of product
Exercise
•
•
•
Classification of Costs
Profit statement
Decision making using marginal costing
Acceptance of special orders below normal selling
price.
Dropping an unprofitable product or closing down
unprofitable department
Limiting factor decisions
Exercise
10.30 am
TEA BREAK
10.45 sm
SESSION 1 & 2 (CONTINUED)
10.30 am
TEA BREAK
ACTIVITY BASED COSTING
10.45 am
SESSION 2
ABSORPTION COSTING & MARGINAL
COSTING DIFFERENCES COST
VOLUME PROFIT ANALYSIS
•
•
When appropriate?
Differences with Absorption Costing
JOB COSTING & SERVICE COSTING
•
•
Types of industries
Setting selling prices
1.00 pm
LUNCH & ZOHOR
2.00 pm.
SESSION 3
•
•
•
•
•
PROCESS COSTING
• Types of industries
• Simple process accounts
• Normal and abnormal losses and gains
• Work in process equivalent units
• Cost per unit and setting selling price
• Exercise
3.30 pm
TEA BREAK
3.45 pm
SESSION 4
CASE STUDY
5.00 pm
END SESSION
Additional Information
• Interactive lectures
• Discussions
• Practical Exercises & Case
Study
1.00 pm
2.00 pm
Relationship and assumptions
Break-even point determination using Equations,
contribution margin &
graphs
Target profit
Alternative pricing strategies
Exercise
LUNCH & ZOHOR
SESSION 3
BUDGETING
•
•
•
•
•
•
Overview and benefits of budgeting
Sales & Production budget
Material & Labour budget
Overhead, selling and administration budgets
Cash budgets
Fixed & Flexible budgets
3.30 pm
TEA BREAK
3.45 pm
SESSION 4
STANDARD COSTING & VARIANCE
ANALYSIS
•
•
•
•
•
•
5.00 pm
Definition of terms used
Setting standards
Calculating cost variances for
Materials, labour and overhead
Sales Variances
Exercise
END OF PROGRAMME
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REGISTRATION DETAILS
Registration
To register, please fill in the registration
form and return it with your cheque or
bank draft in favor of “Comfori Sdn.
Bhd.”.
Fees and Payment
Participant
Individual fee
Group Fee (for three
or more participants)
Time Table
The course starts at 9.00 am and ends at
5.00 pm daily. Lunch at 12.30 pm to 1.30
pm. In between, there will be two breaks.
How to register
TEL: (03) 5621 3630 (Intan)
Fee
RM 1,100
each
RM 1,000
each
Fees must be sent with registration form
in advance and include tuition, tea
breaks, lunches and course notes.
Once we receive your registration, a
place will be reserved for you.
Admission nametag and course notes will
be provided at the start of the course.
FAX: (03) 5638 8248
E-MAIL: info@comfori.com
Mail:
Comfori Sdn. Bhd. (581115-T)
E-02-3, 3rd Floor, East Wing, Subang
Square Business Centre, Jalan SS15/4G,
47500 Subang Jaya,
Selangor.
For further enquiries:
Please call for more information
(03) 5621 3630 (Intan)
REGISTRATION FORM
Fundamental of Costing & Budgeting
ο Register me to above course seminar
Mr/Ms/Mrs: ____________________________________________________
Position: _______________________________________________________
Department: ____________________________________________________
Company: _____________________________________________________
Address: ______________________________________________________
______________________________________________________________
Contact person: _________________________________________________
Tel: ____________________________Fax____________________________
Email: _________________________________________________________
Type of Industry: ________________________________________________
Company Chop:
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