Introduction

Advanced managerial accounting focuses on using financial and non-financial data to make strategic decisions that enhance business performance, control costs, and increase profitability. This 5-day course will cover advanced managerial accounting concepts, including cost management, performance measurement, budgeting, and decision-making. Participants will gain an in-depth understanding of how to apply these concepts to real-world scenarios and provide valuable insights for decision-makers.

By the end of the course, participants will be able to implement complex costing techniques, evaluate performance through advanced metrics, and make strategic decisions that align with their organization’s financial goals.

Course Objectives

• Master advanced costing techniques such as activity-based costing, job order costing, and process costing.
• Learn to design, implement, and manage comprehensive budgeting systems.
• Develop skills in variance analysis to measure performance and improve cost control.
• Understand how to calculate and apply key performance metrics in decision-making.
• Learn to use managerial accounting tools for strategic decision-making and performance evaluation.
• Gain knowledge in financial forecasting, break-even analysis, and capital budgeting.

Who Should Attend?

• Senior accountants, financial managers, and controllers responsible for cost management and strategic financial decision-making.
• Managers who need to understand the financial implications of business decisions.
• Financial analysts involved in performance measurement and budgeting.
• Individuals preparing for higher-level accounting or financial roles in large corporations.
• Business owners and entrepreneurs who want to improve their financial management skills.

Day 1: Advanced Costing Techniques

• Session 1: Activity-Based Costing (ABC)
  • Introduction to Activity-Based Costing (ABC) and its benefits over traditional costing methods.
  • How to allocate overhead costs based on activities and cost drivers.
  • Applying ABC in decision-making, pricing, and cost management.
  • Real-world examples of ABC in various industries.
• Session 2: Job Order and Process Costing Systems
  • Understanding job order costing: applying costing to customized products and projects.
  • Understanding process costing: applying costing to homogeneous products in continuous production.
  • Differences between job order and process costing and their application in manufacturing.
• Session 3: Standard Costing and Variance Analysis
  • Setting up standard costs for direct materials, labor, and overhead.
  • How to calculate and analyze cost variances: price variance, efficiency variance, and spending variance.
  • Using variance analysis to control costs and improve performance.

Day 2: Advanced Budgeting and Forecasting Techniques

• Session 1: Master Budgeting
  • Overview of master budgets and the role they play in financial planning.
  • How to create a master budget, including sales, production, cash, and capital budgets.
  • Integrating different budgets into one cohesive plan to forecast the company’s financial position.
• Session 2: Flexible Budgeting and Variance Analysis
  • Understanding flexible budgets and how they adjust for varying levels of activity.
  • Analyzing performance using flexible budgets and identifying the causes of variances.
  • Real-world applications of flexible budgets in managing cost control.
• Session 3: Cash Flow Forecasting
  • The importance of cash flow forecasting in managerial decision-making.
  • Techniques for forecasting cash flows: direct method vs. indirect method.
  • Cash flow projections for short-term and long-term business needs.

Day 3: Performance Measurement and Decision-Making

• Session 1: Key Performance Indicators (KPIs) and Balanced Scorecard
  • Introduction to KPIs: defining and measuring financial and non-financial performance.
  • How to create a balanced scorecard that includes financial, customer, internal process, and learning/growth perspectives.
  • Using KPIs and scorecards for tracking strategic objectives and organizational performance.
• Session 2: Break-Even Analysis and Cost-Volume-Profit (CVP) Analysis
  • Understanding the relationship between fixed and variable costs, and how to calculate break-even points.
  • Using CVP analysis for pricing decisions, product line selection, and cost management.
  • Scenario analysis and sensitivity analysis for decision-making under uncertainty.
• Session 3: Relevant Costing for Decision-Making
  • Understanding relevant and irrelevant costs for decision-making.
  • How to apply relevant costing for decisions such as make-or-buy, pricing, product discontinuation, and outsourcing.
  • Real-life case studies on using relevant costs in managerial decisions.

Day 4: Strategic Financial Decision-Making

• Session 1: Capital Budgeting and Investment Appraisal
  • Key capital budgeting techniques: Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period.
  • How to assess the financial viability of long-term investments.
  • Adjusting for risk in capital budgeting decisions using sensitivity analysis and scenario planning.
• Session 2: Transfer Pricing
  • The concept of transfer pricing and its importance in multinational organizations.
  • Methods of setting transfer prices: cost-based, market-based, and negotiated pricing.
  • The impact of transfer pricing on financial performance and tax implications.
• Session 3: Leveraged Buyouts (LBOs) and Mergers & Acquisitions (M&A)
  • Understanding the financial structure of LBOs and their impact on company valuation.
  • The role of managerial accounting in M&A: financial modeling, due diligence, and integration.
  • How to evaluate and manage financial risks in corporate restructuring.

Day 5: Advanced Techniques in Risk Management and Financial Analysis

• Session 1: Risk Management in Managerial Accounting
  • The role of managerial accounting in risk management: identifying, analyzing, and mitigating risks.
  • Techniques for managing financial risk: hedging, insurance, and diversification.
  • The relationship between financial risk and operational performance.
• Session 2: Using Financial Ratios for Performance Evaluation
  • Advanced financial ratios for measuring liquidity, profitability, and solvency.
  • How to use financial ratios for benchmarking and identifying performance trends.
  • Real-world applications of ratio analysis in business decision-making.
• Session 3: Implementing Strategic Financial Plans
  • How to integrate financial planning with business strategy.
  • Managing working capital, financing options, and operational efficiency.
  • Developing long-term strategic financial plans to align with corporate objectives.

Course Conclusion

• Recap of Key Learnings
• Interactive Q&A Session
• Certification of Completion
• Networking Opportunity