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

Who Can Benefit

• financial decision makers, working with accountants and are involved in formulating, planning and implementing business strategy
• Those with expertise in their own fields who need to acquire expertise 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

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