Course Description:

This is a 5-day intensive, practical workshop designed to eliminate the “mystery” from the budgeting side of the participant’s business. The workshop begins with an overview of the decision making process (planning decision and controlling decision) and concludes with a discussion of the comprehensive budget. Using examples and exercises, the participants will learn how financial of how to prepare the comprehensive budget, how to determine and analyze the variances between the actual and budgeted performance, and when to investigate the variance.

Course Goal:

To enhance the participant’s Knowledge, Abilities and Skills necessary to understand budgeting issues as a planning and control tool.

Course Objectives:

By the end of the course the participant will be able to:

1. Describe the Planning and Budgeting Cycle
2. Describe the Major Elements of the Annual Business Plan
3. Describe and Perform the Basic Steps in Preparing a Comprehensive Budget
4. Prepare a Capital Budget
5. Determine and Investigate Budget Variances
6. Understand New Trends in Budgeting

Course Outline:

• Types of budget systems

1. Annual business plans (master budgets)
2. Master Budget and Responsibility Accounting
3. Types of Budgets
4. Comprehensive Budgeting
5. Responsibility Accounting
6. Responsibility and Accountability

• Annual profit plan and the supporting schedules

1. Sales budget
2. Production / inventory budget
3. Direct materials budget
4. Direct labor budget
5. Pro forma statement of employee benefit costs
6. Overhead budget
7. Cost of goods sold budget
8. Selling and administrative budget
9. Budget for acquisition of capital assets
10. Cash budget and cash management plans
11. Pro forma income statement
12. Pro forma statement of financial position
13. Pro forma statement of cash flows

• Measuring Actual Performance against the Budgeted Performance

1. Static Budgets and Flexible Budgets
2. Flexible Budgets without Standard Cost
3. Flexible Budgets with Standard Cost
4. Overview of Variance analysis (DM, DL, and OH)
5. Variances Investigation
6. Benchmarking
7. Human Aspects of Budgeting

• New Trends in Budgeting

1. Activity based budgeting
2. Zero-based budgeting
3. Continuous (rolling) budgets
4. Kaizen budgeting

Who Can Benefit

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