Budget Management Control System


Units: 6


This course provides an introduction to the design and use of systems that assist management in ensuring that organizations achieve their goals. It emphasizes budgets as a major component of management control systems for for-profit, governmental and non-profit organizations. Key topics include: • Understanding costs and cost behavior • Product and service costing • Budgets as planning devices and performance targets • Variance analysis • Systems to provide incentives for managers to meet organizational goals

Learning Outcomes:

At the end of this course, you should be able to: • Apply breakeven analysis in various real world situations • 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

Prerequisites Description:

Ability to prepare basic spreadsheets and report in Excel