Budgeting for Profit Planning & Control (PCDP)

Pre-requistes:

Basic accounting

Knowledge Level:

Overview

Major Topics:

• The What and Why of Budgeting
• Strategic Planning and Budgeting and Planning for Profit
• Administering the Budget: Reports, Analyses, and Evaluations
• Cost Behavior: Emphasis On Flexible Budgets and Contribution Margin
• Responsibility Accounting and Reporting To Management
• Master Budget: Genesis of Forecasting and Profit Planning
• Using Variance Analysis to Evaluate Performance
• Budgeting Sales Forecasts, and the Sales and Marketing Budget
• Budgeting Manufacturing Costs
• Budgeting General and Administrative Expenses and R&D Costs
• Cash Flow Forecasting and Budgeting
• Zero-Base Budgeting: Priority Budgeting for Best Resource Allocation
• Budgeting for Service Businesses and Nonprofit Organizations

Learning Objectives:

• Recognize the different types of budgets
• Identify characteristics and advantages of budgeting
• 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
• Recognize the major types of budget reports
• Identify the components of the budget sheet
• 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
• Distinguish among three types of responsibility centers.
• Identify weaknesses of many cost systems
• Identify examples of financial budgets
• Recognize components of overhead
• Recognize the purpose and causes of variance analysis
• Recognize where certain variances arise
• Identify the value of performance reports
• 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
• Recognize fixed vs. semi-variable vs variable costs
• Understand the applicability of static budgets
• Recognize how the flexible budget formula help develop the factory overhead budget
• Recognize items included in the budget process for general and administrative 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
• Recognize the importance, attributes and components in a cash budgeting system
• Identify advantages of using “what-if” scenarios when budgeting
• Recognize the steps involved in zero-base budgeting and how often it should be conducted
• Recognize what is involve in a decision package
• Recognize the special features associated with planning and budgeting for service businesses.
• Identify the unique features and characteristics of governmental and nonprofit organizations (NPOs)

Designed For:

Business professionals engaged in budgeting, financial planning, forecasting, profit planning, and control