1. Introduction

• The Planning Process

• Need for Plans

• System of Plans

• Steps in Developing the Near-Term Sales Plan

• Sales Forecasting

• Measurement of Cost Behaviour

• How management influences on cost behaviour?

• How to measure and Mathematically express cost functions and use them to predict costs?

• How to measure cost behaviour using the account analysis, high-low, visual-fit, and least-squares regression Methods?



2. Budget and Budgeting

• Definition of Budget

• Strategic Focus of Budgeting

• What are the Advantages of Budgets?

• Management Support

• Time Coverage of Budgets

• Types of Budgets



3. Budgeting and Planning

• Strategic Planning and Budgeting Process

• Why You Must Link Budgeting and Forecasting to Planning and Performance?

• Budget Participants and Budget Preparation Procedure.

• Participative Budgeting and Importance of Communication in Effective Planning Process.



4. Building the Budgeting Model

• Prepare the budget structure

• Write the Budget

• Monitor

• Comprehensive (Master) Budgeting

   •   Cash is King: How to manage this Resource

   •   Objectives of Cashflow and Working Capital Management

• Cashflow Reporting

• Capital Budgeting:

   •   What is Capital Expenditure?

   •   Nature of Capital Investment Decisions

   •   What is Capital Budget?

   •   Stages of Capital Budgeting Process

   •   Relevant Cash Flows

   •   Methods of Evaluating Capital Investments

   •   Budgeting and control: Use of budget and budget performance analysis (variance analysis)



5. Flexible Budget and Overhead Analysis

• The advantages of the flexible budget approach over the static budget approach.

• Prepare a performance report for both variable and fixed overhead costs using the flexible budget approach.

• Use the flexible budget to prepare a variable overhead performance report containing only a spending variance.

•Use the flexible budget to prepare a variable overhead performance report containing both a spending and an efficiency variance.

• Explain the significance of the denominator activity figure in determining the standard cost of a unity of product.

• Apply overhead cost to units of product in a standard cost system.

• Compute and interpret the fixed overhead budget and volume variances.

• Variances Investigation