|Author :||Jae K. Shim, Ph.D., CPA|
|CPE Credits :||10.0|
|IRS Credits :||0|
|Passing Score :||70%|
|Primary Subject-Field Of Study:||
Finance - Management for Course Id 15
The course is intended for business professionals engaged in budgeting, financial planning, forecasting, profit planning, and control. A budget is the formal expression of plans, goals, and objectives of management that covers all aspects of operations for a designated time period. The budget is a tool providing targets and direction. Budgets provide control over the immediate environment, help to master the financial aspects of the job and department, and solve problems before they occur. Budgets focus on the importance of evaluating alternative actions before decisions are actually implemented. This course explains what budgets are, how they work, how to prepare and present them, and how to analyze budget figures and results. The new development and use of budgets such as rolling budgets at various managerial levels within a business are illustrated. Active financial planning software and e-budgeting that combine budgeting, forecasting analytics, business intelligence, and collaboration.
|Usage Rank :||0|
|Prerequisites :||Basic math.
|Experience Level :||Overview|
|Additional Contents :||Complete, no additional material needed.|
|Additional Links :|
|Advance Preparation :||None.|
|Delivery Method :||Self-Study|
|Intended Participants :||Anyone needing Continuing Professional Education (CPE).|
|Revision Date :||14-Jan-2014|
|NASBA Course Declaration :||Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam.|
|Approved Audience :||
NASBA QAS - NASBA Registry - 15
|Keywords :||Finance, Modern, Budgeting, Profit, Planning, Control, cpe, cpa, online course|
|Learning Objectives :||
List and define the types of budgets
Explain the steps involved in the budgetary process
Distinguish between the bottom-up and top-down approaches to budgeting
Describe how to coordinate departmental budget activities
Explain actual costs versus budget costs
Identify the advantages and disadvantages of budgets
Explain how strategic planning and budgeting are linked together
Prepare a checklist for a budgeting system
Distinguish between short-term and long-term plans
List the types of plans and explain each.
Explain the basic principles of profit planning
Identify the objectives of profit planning
Describe the role of managers in achieving profit targets
Give a few real-life illustrations of profit planning
Identify basic types of budget reports
Give a list of items in the performance-to-budget report
Explain the budget manual and what it contains
Describe what the budget sheet is all about
Demonstrate the budget preparation calendar
Explain two methods of developing a flexible budget formula: the high-low method and regression analysis
Explain the advantages and disadvantages of the high-low method for developing a flexible budget formula
Develop the formula using the high-low method
Describe the advantages of regression analysis
Utilize a spreadsheet program such as MS Excel to develop the flexible budget formula.
Prepare a flexible budget
Distinguish between the terms gross margin and contribution margin
Explain why the contribution income statement is useful for managers
Distinguish among three types of responsibility centers and see how they are evaluated
Explain what cost control involves
Identify the types of reports necessary for effective responsibility accounting
Compare conventional accounting and responsibility accounting
Diagram and explain the master budget interrelationships.
Describe the master budget process and the steps involved in the process
Prepare sales, production, manufacturing costs, and cash budgets.
Develop a budgeted income statement.
Prepare a cash budget
Explain how budgets aid in planning and control
Identify the types of standards
State the purposes for using standard costs
Describe the steps involved in variance analysis
Calculate sales variances
Calculate the different types of variances for manufacturing costs--direct materials, direct labor, and manufacturing overhead.
Explain the managerial significance of these variances.
Computer variances in selling and administrative expenses
Identify the types of performance reports
Prepare a flexible budget and explain its advantage over the static budget format.
Differentiate between sales planning sale forecast
Explain how important sales forecasts are to budgeting
. Explain why sales forecasts are needed for managerial planning
List three ways of making estimates
Describe how regression analysis can be used to develop a sales forecasting model
Prepare the sales budget
Prepare a direct material usage and purchase budget
Discuss the procedures for developing material budgets
Prepare a direct labor budget
Discuss the procedures for developing direct labor budgets
Prepare a factory overhead budget
Describe how the flexible budget formula help develop the factory overhead budget
Prepare marketing budgets and selling expenses budgets
Discuss the procedures for developing selling expenses budgets
List three popular methods for developing advertising budgets and explain each
Identify some measures of advertising effectiveness
Prepare performance reports for marketing personnel
Prepare a budget for distribution expenses
Describe the budget process for general and administrative expenses
Explain some approaches to budgeting general and administrative expenses
Identify the factors that need to be considered in R&D planning
Define the product life cycle and explain its implication in R&D planning
Prepare a R&D budget
Prepare project status reports
Prepare a cash budget
Enumerate the major components of a cash budget
Prepare a cash variance report
Give some popular cash budgeting software
Give some examples of stand-alone budgeting software
Describe some advantages of using budgeting software
Build rolling budgets
Briefly explain some popular budgeting software
Describe why capital expenditures decisions are necessary.
Discuss what information is needed to make a capital budgeting decision.
List factors to consider in determining capital expenditures.
Identify the four steps in the capital expenditure budgetary process.
List some major forms for capital project decisions and explain each.
Prepare a capital budget.
Discuss the advantages and disadvantages of ZBB.
Explain how ZBB differs from traditional budgeting.
Describe the steps involved in the ZBB process.
Define decision packages.
Prepare a zero-base budget.
Discuss a common pattern observed while implementing a budgetary system for growing service companies
Prepare a budget for service businesses such as a hotel and an airliner
List the three major types of NPOs
Explain the concept of encumbrances.
Explain why budgeting is particularly important to NPOs
Discuss the characteristics that are unique to budgeting for hospitals, colleges, churches, and professional associations.
|Course Contents :||
Chapter 1 The What and Why of Budgeting
Chapter 2 Strategic Planning and Budgeting
Chapter 3 ‑ Profit Planning: Targeting and Reaching Achievable Goals
Chapter 4 ‑ Administering the Budget: Reports, Analyses, and Evaluations
Chapter 5 - Cost Behavior: Emphasis on Flexible Budgeting and Contribution Margin
Chapter 6- Responsibility Accounting and Reporting To Management
Chapter 7- Master Budget: Genesis of Forecasting and Profit Planning
Chapter 8- Using Variance Analysis to Evaluate Performance
Chapter 9- Budgeting Sales and Sales Forecasts
Chapter 10- Budgeting Manufacturing Costs
Chapter 11-Budgeting for Sales, Advertising, and Distribution Expenses
Chapter 12‑ Budgeting General and Administrative Expenses
Chapter 13‑ Budgeting for Research and Development
Chapter 14‑ Cash Flow Forecasting and Cash Budgeting
Chapter 15‑Use of a Spreadsheet Program and Software for Budgeting
Chapter 16‑ Budgeting for Capital Expenditures
Chapter 17‑ Zero-Base Budgeting: Priority Budgeting for Best Resource Allocation
Chapter 18- Budgeting for Service Businesses
Chapter 19- Budgeting for Nonprofit Organizations