Budgeting in business is often perceived as a tedious and complex process, fraught with inaccuracies and misunderstandings about its purpose and implementation. This course directly tackles these challenges, offering a clear, structured approach to budgeting, financial planning, and forecasting. We agitate the issue by addressing common misconceptions and difficulties in effectively preparing and analyzing budgets. The solution unfolds through comprehensive instruction on the creation and presentation of various budget types, linking strategic planning with budgeting, and employing new developments like rolling budgets. Participants will learn how to integrate budgeting with forecasting analytics and business intelligence, enabling them to master the financial aspects of their roles and anticipate problems before they arise.
Learning Objectives
After studying this course, you will be able to:
Chapter 1
Recognize the different types of budgets;
Identify characteristics and advantages of budgeting;
Chapter 2
Recognize how strategic planning and budgeting are linked together;
Identify certain budget measurements;
Distinguish between short-term and long-term plans;
Identify objectives of profit planning;
Recognize metrics in the profit plan;
Chapter 3
Recognize the major types of budget reports;
Identify the components of the budget sheet;
Chapter 4
Identify examples of variable costs, fixed costs, and mixed costs;
Recognize two methods of developing a flexible budget formula: the high-low method and regression analysis;
Calculate fixed costs and overheard costs;
Chapter 5
Distinguish among three types of responsibility centers;
Identify weaknesses of many cost systems;
Chapter 6
Identify examples of financial budgets;
Recognize components of overhead;
Chapter 7
Recognize the purpose and causes of variance analysis;
Recognize where certain variances arise;
Identify the value of performance reports;
Chapter 8
Identify the importance of a reasonable sales budget;
Differentiate between sales planning and sale forecast;
Recognize the procedures for developing advertising budgets and some characteristics of the advertising budget;
Identify some methods of calculating advertising budgets;
Chapter 9
Recognize fixed vs. semi-variable vs variable costs;
Understand the applicability of static budgets;
Recognize how the flexible budget formula helps develop the factory overhead budget;
Chapter 10
Recognize items included in the budget process for general and administrative (G&A) expenses;
Identify the factors that need to be considered in R&D planning;
Identify factors in considering capital expenditures;
Recognize components of the capital expenditures budget;
Chapter 11
Recognize the importance, attributes and components in a cash budgeting system;
Identify advantages of using "what-if" scenarios when budgeting;
Chapter 12
Recognize the steps involved in zero-base budgeting and how often it should be conducted;
Recognize what is involved in a decision package;
Chapter 13
Recognize the special features associated with planning and budgeting for service businesses; and
Identify the unique features and characteristics of governmental and nonprofit organizations (NPOs).
Major Topics
The What and Why of Budgeting
Types of Budgets
Advantages and Disadvantages of Budgets
Strategic Planning
Control, Evaluation and Analysis
Plans and Planning
Budget Process
Budget Audit
Regression Analysis
Cost Controllability
Organization Structure
Sales Budget
Budgeted Cash Balances
Using Variance Analysis
The Marketing Budget
Budgeting Manufacturing Costs
Administrative Departments
Budgeting for Capital Expenditures
Cash Flow Forecasting and Budgeting
The Zero-Base Budgeting Process
Capital and Operating Budgets
