Cost Estimation, Budgeting and Cost Control Techniques

Course overview

What are cost control and budgeting? Estimating expenses, creating a shared budget, and managing actual costs in relation to that budget are all parts of budgeting and cost control. A realistic budget must be planned, created, and followed to the letter in order for a department’s or even the entire organization’s finances to be successfully managed. Additionally, operating expenditures must be tracked and managed under strict financial management in order to guarantee this compliance.

Cost estimation – what is it? An estimate of the cost of a project, programmed, or operation is known as a cost estimate. A product of the cost estimating process is the cost estimate. The cost estimate has a single overall value and might have separate, measurable component values. Therefore, it is essential to comprehend how expenses act in order to create realistic strategies and provide the organization with the right resources.

You will learn to practice and execute efficient cost reduction tactics in our Training Bee course on “Cost Estimation, Budgeting and Cost Control” to keep expenditures down and boost earnings. You will learn how to plan, manage, and control expenditures using the most popular budgeting approaches.

Introduction

Cost Estimation, Budgeting, and Cost Control are essential components of any successful business. Cost Estimation is the process of predicting the cost of a project before it is actually completed. It is important to accurately estimate costs in order to ensure that the project is completed within the budget set. Budgeting is the process of creating a financial plan for a project or business. It includes setting financial goals, allocating resources, and determining how funds will be used. Cost Control is the process of monitoring and adjusting the costs of a project to ensure that the project is completed within the budget. This includes identifying areas of cost reduction, controlling expenditures, and tracking costs. By using Cost Estimation, Budgeting, and Cost Control, businesses can ensure that projects are completed on time and within budget.

We are The Training Bee, a global training and education firm providing services in many countries. We are specialized in capacity building and talent development solutions for individuals and organizations, with our highly customized programs and training sessions.

Learning Objectives

Upon completing Cost Estimation, Budgeting and Cost Control Techniques, participants will be able to:

• Recognize how budgeting affects attaining your organization’s objectives.
• Better company decisions should be based on financial analysis and planning.
• Recognize and name important performance indicators to aid in focused and efficient decision-making
• Learn to combine budgeting and forecasting, and link them to your corporate strategy.
• Create strategies to boost performance and profitability via improved planning and reporting.

Our Unique Training Methodology

This interactive course comprises the following training methods:

• Social learning – Information and expertise exchanged amongst peers via computer-based technologies and interactive conversations including Blogging, instant messaging, and forums for debate in groups.
• Mind mapping and brainstorming – A session will be carried out between participants to uncover unique ideas, thoughts, and opinions having a quality discussion.
• Interactive sessions – The course will use informative lectures to introduce key concepts and theories related to the topic.
• Presentations – Participants will be presented with multimedia tools such as videos and graphics to enhance learning. These will be delivered engagingly and interactively.
• Group discussions – The course will incorporate group discussions and debates to encourage active participation and collaboration.
• Case studies – Participants will be presented with realistic scenarios and case studies that demonstrate effective strategies related to the topic. These activities will encourage participants to think critically and apply their knowledge to real-life situations.

Training Medium

This Cost Estimation, Budgeting and Cost Control Techniques training is designed in a way that it can be delivered face-to-face and virtually.

Course Duration

This training is versatile in its delivery. The training can be delivered as a full-fledged 40-hour training program or a 15- hours crash course covering 5 hours of content each day over 3 days

Pre-course Assessment

Before you enroll in this course all we wanted to know is your exact mindset and your way of thinking.
For that, we have designed this questionnaire attached below.

• What topics will be covered in this course?
• What types of cost estimation techniques will be discussed?
• How will cost control and budgeting be addressed?
• How will the concepts be applied to a real-world project?
• What methods of cost estimation will be discussed?
• What tools and techniques will be used to assess cost and resource requirements?

Course Modules

This Cost Estimation, Budgeting and Cost Control Techniques cover the following topics for understanding the essentials of the Agile Workplace:

Module 1 – Within a Strategic Framework for Budgeting

• Budgeting Goals and Importance Putting Strategy into a Business Plan
• A Manual for Better Budgeting
• Discussions and activities in groups

Module 2 – Budgeting Methodology

• Process Flow of an Organizational Framework for Manufacturing, Services, and Retail Companies Budgeting in Small/Large Businesses
• Sources of Information: Top-Down vs. Bottom-Up Involvement

Module 3 – Practical Guide to Budget Development

• Typical Budgeting Methods/Models
• Fixed vs. Flexible Budget, Imposed vs. Participatory, Static vs. Rolling, Incremental, Zero Based, Formula Based, Activity Based, Hybrid Budget Advantages and Budget Criticisms
• Budgeting from a Behavioral Perspective
• Obtain support for the budget
• Beyond Budgeting: The Push for Creating Shareholder Value
• Case Study Exercises and Analysis for Modeling a Master Budget in Excel

Module 4 – Monitoring budgetary results

• Budget vs. Actual Variance Analysis (Control Process)
• Monthly Variances with Management-Related Qualitative Inputs
• Cost and Time Variances
• Regulatory Ratios
• How Do You Review a Budget?
• Analyses and Exercises

Module 5 – Tools and Optimization Techniques for Applied Budgeting

• Excel’s decision-making tools:
• Managing Scenarios
• Goal (Sensitivity Analysis) Find Data Table
• Solver Method
• Breakeven Evaluation
• How to accommodate uncertainty Exercises and Analysis in Risk Analysis

Post-course Assessment

Participants need to complete an assessment post-course completion so our mentors will get to know their understanding of the course. A mentor will also have interrogative conversations with participants and provide valuable feedback.

• What are the key components of a cost estimation process?
• What methods are used to estimate project costs?
• How does cost estimation influence project budgeting?
• What techniques are used to track and control project costs?
• How do cost estimation and budgeting help to manage risk?
• How can cost estimation and budgeting be used to improve project performance?

Lessons Learned

The most important lesson to be learned from cost estimation, budgeting and cost control is that the success of any project depends on careful planning and management. It is essential to have a detailed understanding of the costs associated with a project and to develop realistic budgets that can be monitored and controlled. This will enable a project manager to identify and address any potential issues early on, helping to ensure that the project is completed on time and within budget.

“For each project, it pays to be well-prepared and practice cost estimate, budgeting, and cost control since it will ultimately save you time and money.”