Course Objectives.

• Define Planning and its Purpose
• Describe the Planning and Budgeting Cycle
• Explain the Strategic Planning Process
• Describe the Major Elements of the Annual Business Plan
• Understand why you must link budgeting and forecasting to planning and performance
• Describe and Perform the Basic Steps in Preparing a Comprehensive (Master) Budget
• Prepare a Capital Budget
• Determine and Investigate Budget Variances
• Understand New Trends in Budgeting

Who Can Benefit?

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

Course Outline:

• Introduction.

• The Planning Process
• Need for Plans
• System of Plans
• Steps in Developing the Near-Term Sales Plan
• Sales Forecasting
• Measurement of Cost Behavior
• How management influences on cost behavior?
• How to measure and Mathematically express cost functions and use them to predict costs?
• How to measure cost behavior using the account analysis, high-low, visual-fit, and least-squares regression Methods?

• Budget and Budgeting

• Definition of Budget
• Strategic Focus of Budgeting
• What are the Advantages of Budgets?
• Management Support
• Time Coverage of Budgets
• Types of Budgets

• Budgeting and Planning.
• Strategic Planning and Budgeting Process

• Why You Must Link Budgeting and Forecasting to Planning and Performance?
• Participative Budgeting and Importance of Communication in Effective Planning Process.
• Building the Budgeting Model
• Prepare the budget structure
• Write the Budget
• Monitor
• Budget Participants and Budget Preparation Procedure.
• Comprehensive (Master)Budgeting
• Cash is King: How to manage this Resource
• Objectives of Cash flow and Working Capital Management
• Cash flow Reporting

• Capital Budgeting.

• What is Capital Expenditure?
• Nature of Capital Investment Decisions
•  What is Capital Budget?
• Stages of Capital Budgeting Process
• Relevant Cash Flows
•   Methods of Evaluating Capital Investments
• Budgeting and control: Use of budget and budget performance analysis (variance analysis)
• Flexible Budget and Overhead Analysis
• The advantages of the flexible budget approach over the static budget approach.
• Prepare a performance report for both variable and fixed overhead costs using the flexible budget approach.
• Use the flexible budget to prepare a variable overhead performance report containing only a spending variance.
• Use the flexible budget to prepare a variable overhead performance report containing both a spending and an efficiency variance.
• Explain the significance of the denominator activity figure in determining the standard cost of a unity of product.
• Apply overhead cost to units of product in a standard cost system.
• Compute and interpret the fixed overhead budget and volume variances.
•   Variances Investigation

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