Course Objectives
When you have completed
this workbook you will be better able to:
- identify different costs and how they behave
- appreciate how important it is to control costs
- understand how standard costing techniques help to control costs
- use different methods for controlling and reducing costs
- understand what a budget is and how they are used
- help to draw up workable budgets
- use some budgetary control techniques
Assessment Criteria
Know how to work to a budget
1.1 Explain the importance of agreeing to a budget and operating
within it
1.2 Describe a method to monitor variance between actual performance
and budget
1.3 Explain how information used in determining and/or revising
budgets is gathered
Understand costs within an organization
1.1 Explain fixed and variable costs; and the concept of break even
in relation to the organization
1.2 Explain the purpose and nature of basic cost statements
1.3 Explain the value of standard costing and its role as a control
mechanism
1.4 Briefly describe mechanisms in the organization to maintain
control of costs
International
Curriculum
Unit 3.27 - Official ILM
Curriculum, Institute of Leadership & Management
Course Outline
SECTION 1 BUDGETING
1. An Introduction to budgeting
2. Objectives of budgeting
3.
The budget cycle
4. Constructing a budget
5. Negotiating a
budget
6. Incremental budgeting
7. Zero based budgeting
8. Budgetary control
9. Budget
preparation
10. Variance analysis
11. Performance management
SECTION 2 COST BEHAVIOUR AND CONTROL
1. An Introduction to cost control
2. Cost classification
3.
Cost elements
4. Direct and indirect costs
5. Fixed and variable costs
6. Break-even analysis
7. Overhead costs
8. Cost centres
9. Profit centres
10 Standard costing
11. Cost control mechanisms
APPENDIX
Assignment
Marksheet