Budgeting for Profit Planning and Control

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).