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Course Description: This course
presents a comprehensive overview of the planning and budgeting process
combining the content of
Course # 201, Strategic Planning and the Budgeting Process and
Course # 202,
Budget Preparation Procedures.
During Day
1, we will discuss the planning cycle and its relationship to the annual
budgeting process. We will explain the nature of strategic planning and
how this process is a necessary first step in the development of
long-range strategies and short-term plans. We will also cover the annual
budgeting cycle, the major contents of the annual business plan, and the
review process. The behavioral impact of the budgeting process will also
be explored. Day 2 focuses on the preparation of the operating budget.
We will discuss the basic steps in developing an operating budget and show
how to estimate each major element of the budgeted income statement. You
will also learn how to budget sales, cost of sales, and operating expenses
for service and manufacturing industries and how to prepare a departmental
spending budget.
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.
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:
- Define planning and its uses within the
organization
- Describe the planning cycle and its relationship
to the budgeting process
- Explain the strategic planning process
- Describe the budgeting cycle
- Identify the major contents of the annual business
plan
- Identify the budget preparation method that is
appropriate for your organization
- Manage the review process more effectively
- Explain the principles of adaptive processes and
how these are applied to the budgeting process.
- 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
Course
Content:
Day 1
- The nature and purpose of planning
- An overview of the planning cycle
- The strategic planning process
- Strategic analysis
- External factors
- Internal factors
- Overview of the budgeting process
- Budget preparation methods
- Forecasts and the budget
- Guidelines for a smoother budgeting process
- How to manage the review process
- Behavioral considerations
- Beyond budgeting
Day 2
- The operating budget
- The sales budget
- The production plan
- Budgeted manufacturing costs
- Cost of goods sold
- 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:
Group-live
Recommended CPE:
14 credit hours
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