This course is also offered in face-to-face courses, click on the course below.
Overview
Course Methodology
This course focuses on exercises, case studies, and individual and group presentations.
Course Objectives
By the end of the course, participants will be able to:
- Defend the importance of linking an organization's budget with its strategic plan
- Demonstrate how the budget relates to the balance sheet, income statement, and cash flow statement
- Prepare the key elements of an operating and capital budget and evaluate the different budgeting approaches used
- Apply cost control tools, analyze management variance reports, and take proper corrective action
- Calculate different capital budgeting evaluation techniques as included in a capital expenditure proposal
- Utilize cost-volume-profit analysis in making budgeting decisions
Target Audience
All managers, supervisors and analysts who prepare or use management budgets.
Target Competencies
- Interpreting financial statements
- Planning and budgeting
- Cost control
- Capital budgeting
- Applying cost-volume-profit analysis
- Utilizing breakeven analysis
Note
This course is worth 25 NASBA CPEsCourse Outline
- Planning and the Functions of Management
- The critical functions of management
- Budget as a planning tool
- Control: The missing link
- Roadmap to strategy
- Aligning the budget with the organization’s strategy
- Planning pitfalls
- The Key Financial Statements
- The accounting system
- The income statement
- The balance sheet
- Retained earnings
- The cash flow statement
- Budgeting: Process and Approaches
- The advantages of budgeting
- The budget process
- Rolling budgets
- Direct and indirect costs
- The master budget
- Operating and capital budgets
- Approaches to budgeting:
- Incremental budgeting
- Zero-based budgeting
- Flexible budgeting
- Kaizen budgeting and continuous improvement
- Activity-based budgeting
- Tools of forecasting
- Characteristics of an adequate budget
- Problems in budgeting
- Cost Control
- Budget as a control tool
- The control process
- Characteristics of an effective control system
- Responsibility reporting
- Variance analysis:
- Identifying the components of variance
- Taking the corrective action
- Capital Expenditure Budgeting and Analysis
- Time value of money
- The discount rate: Using cost of capital
- Simple versus compound interest
- Identifying and analyzing cash flows
- Net Present Value (NPV)
- Internal Rate of Return (IRR)
- Profitability Index (PI)
- Pay-Back Period (PBP)
- Accounting Rate of Return (ARR)
- Approval for Expenditure (AFE)
- Sensitivity and risk analysis
- Cost Volume Profit Analysis (CVP)
- Defining fixed costs
- Defining variable costs
- Breakeven point in units
- Breakeven point in dollars
- Computing breakeven point in sales
- Sensitivity analysis: Changing assumptions
Schedule & Fees
Face-to-Face Courses
This course is also offered in face-to-face courses, click on the course below.
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