Financial Modeling and Driver-Based Planning

Description

Learn the basic concepts and principles necessary to build driver-based financial models (including use of Excel's Regression and Solver tools) and use them to improve cost management.

The importance of cost management tools able to yield a competitive advantage is no secret. Financial modeling tools including Excel's Regression and Solver tools are now being used in financial planning and analysis to allow users to better manage costs. These tools reveal the drivers affecting costs and to help manage resources.

Highlights

• Driver-based planning (DBP), the next generation approach to cost management
• Why activity-based costing (ABC) & throughput costing (TOC) are not enough
• Cost decomposition analysis using REGRESSION tool
• Driver-based modeling using SOLVER tool
• Multi-driver budgeting for more accurate planning & cost reduction
• The importance of managing idle capacity

Objectives

• Recognize the limitations of traditional cost accounting & activity-based costing.
• Learn the key features of driver-based planning (DBP).
• Identify and validate cost drivers using regression analysis.
• Determine the impact of these drivers using multi-driver cost modeling.
• Uncover hidden profits using a resource-consumption-based approach.
• Develop driver-based planning systems to enhance cost reduction efforts.
• Show why resource consumption-based cost measurement, not GAAP costing, is essential for success.

Designed For

CPAs, CFOs, controllers, financial analysts and accountants.