Budget Management Control System
Units: 6
This course covers the design and use of systems that assist management in insuring that organizations achieve their goals i.e. management control systems. It presents basic principles of management control and uses of management control systems to plan control and evaluate organizational activities. The course presents an extensive discussion of budgets for planning and analysis of variances from the budget for evaluation and control. Design of responsibility centers in organizations to motivate and provide incentives to management will also be studied. Evaluation will consist of two written case analyses an in-class final exam case analysis and class participation.
At the end of this course, you should be able to
- Know how and why to allocate overhead and common costs to programs, products and services, and when this is and is not appropriate
- Prepare a formula-driven budget in Excel
- Prepare flexible budgets
- Compute volume, revenue, and expense variances
- Disaggregate revenue and cost variances into their component parts
- Use variances to help explain deficiencies and improvements in performance
- Identify the types of responsibility centers that should be set up in order to meet the strategic objectives and goals of an organization
- Prepare performance reports with the relevant information for evaluating the manager of a revenue, expense, or profit center in the organization
- Communicate your results in writing in a clear, coherent and logical style, accompanied by the appropriate financial reports
Financial Analysis 90-723, 91-804 , or equivalent
Ability to prepare basic spreadsheets and reports in Excel