Course Objectives

• Describe the Planning and Budgeting Cycle
• Describe the Major Elements of the Annual Business Plan
• Describe and Perform the Basic Steps in Preparing a Comprehensive Budget
• Prepare a Capital Budget
• Determine and Investigate Budget Variances
• Understand New Trends in Budgeting

Course Outline:

• Types of budget systems

• Annual business plans (master budgets)
• Master Budget and Responsibility Accounting
• Types of Budgets
• Comprehensive Budgeting
• Responsibility Accounting
• Responsibility and Accountability

• Annual profit plan and the supporting schedules

• Sales budget
• Production / inventory budget
• Direct materials budget
• Direct labor budget
• Pro forma statement of employee benefit costs
• Overhead budget
• Cost of goods sold budget
• Selling and administrative budget
• Budget for acquisition of capital assets
• Cash budget and cash management plans
• Pro forma income statement
• Pro forma statement of financial position
• Pro forma statement of cash flows
• Measuring Actual Performance against the Budgeted Performance
  • Static Budgets and Flexible Budgets
  • Flexible Budgets without Standard Cost
  • Flexible Budgets with Standard Cost
  • Overview of Variance analysis (DM, DL, and OH)
  • Variances Investigation
  • Benchmarking
  • Human Aspects of Budgeting

• New Trends in Budgeting

• Activity based budgeting
• Zero-based budgeting
• Continuous (rolling) budgets
• Kaizen budgeting

Who Can Benefit?

• financial decision makers, working with accountants and are involved in formulating
• planning and implementing business strategy