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Course Description:
The
preparation of the budget is the ideal time for a manager to question
procedures, look for alternatives, and redesign or improve existing
processes. This session focuses on the preparation of the operating
budget. It describes the basic steps in developing an operating budget
and shows how to estimate each major element of the budgeted income
statement. It explains how to budget sales, cost of sales, and operating
expenses for service and manufacturing industries. Participants will also
learn how to prepare a departmental spending budget and how it is
integrated into the organization’s operating budget. The course can be
taught as a standalone or in combination with
Course # 201, The Planning and Budgeting Cycle to
obtain a more comprehensive view of the planning and budgeting process.
Pre-requisites: This course is
taught at an intermediate level. No specific pre-requisite or advance
preparation is required. However, the participant should have taken the
seminars
Understanding
Financial Information, Basic
Cost Concepts or an equivalent course which explains the
fundamentals of financial information and cost terminology. Participants
are encouraged to complete the course
Strategic
Planning and Budgeting Process or an equivalent course
prior to taking this seminar.
Pre-work: Not required.
Who should attend:
Managers and supervisors in manufacturing or service industries,
entrepreneurs, business owners, professional employees (planners,
engineers, buyers, analysts), controllers, accounting managers and
supervisors, CPAs, CMAs, financial accountants, financial analysts, cost
accountants, cost analysts
Course
Objectives: Upon completion of this seminar, you will be able
to:
- Describe the basic steps in preparing an operating
budget
- Prepare a sales budget and its importance in the
overall budgeting process.
- Discuss how to calculate the different elements of
manufacturing costs
- Calculate unit manufacturing cost
- Calculate cost of sales in a service or
manufacturing environment
- Prepare your departmental spending budget
- Tie your budget dollars to specific objectives
Course
Content:
- The sales budget
- The production plan
- Budgeted manufacturing costs
- Cost of goods sold
- The budgeting process
- Other costs
- Putting it all together in the income statement
- How to budget departmental spending
- Short term strategies
- Organizational structure
- Departmental spending
- Documentation of assumptions, risks, and
opportunities
- Capital budget
Instructional method used:
Instructor-led
Recommended CPE:
7 credit hours
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