Budget Control

Knowledge of Financial Accounting and Management Accounting

Theoretical-practical classes, with theoretical exposition of the syllabus, accompanied by the resolution of practical cases particularly suitable to complement the problems developed in the theoretical exposition.

Objectives and Skills to Develop
Goals:
– Develop knowledge and techniques related to the preparation of budgets by functions and centers of responsibility and their control, in conjunction with strategic and operational planning, in a perspective of using the budget as an instrument of forecast management

– Integrate the issue of determination and analysis of deviations in all responsibility centers of a profit-oriented organization, be it industrial, commercial or services.

– Highlight the importance of benchmarking in budget preparation and standards assessment.

– Establish the methodology and precautions for implementing a budget management system.

Skills to be achieved:

After completing the UC, the student must obtain the following general skills:

• Capacity for analysis and synthesis and decision making;
• Critical and self-critical capacity;
• Ability to understand theory and apply it to practice;

And the following technical skills:

• Understand budget management as a management tool resulting from the strategic and operational planning process and from the management control process;
• Know how to prepare operational and financial budgets, and provisional financial statements – Income Statement and Balance Sheet;
• Know how to calculate and analyze budget deviations by responsibility and cause,
• know how to prepare control reports, and
• Knowing how to develop a methodology for implementing a budget management system

Program
PART I – THE PLANNING AND CONTROL PROCESS

1.The management functions and process

2. Management functions

3.The nature of Budgets and Budget Control

4. Implementation methodology of budget management system

PART II – THE BUDGETING PROCESS

5. The process of preparing Budgets.

6 . Information, Forecasting and Budgeting

7. Budgeting and Uncertainty

8. Budget typology: by Functions, by Centers of Responsibility, by Projects

9.The Budget Articulation

10. Synthesis Budgets

PART III – BUDGET CONTROL

11.The Budget Control Process

12.Assumptions of Budget Control

13. Calculation and analysis of budget deviations

NAO

Drury, Colin – (2019), Management and Cost Accounting – International Thomson Business Press, 7ª Ed.

Horngren, Charles T., Foster, George e Datar – Srikant. (2009), Cost Accounting a Managerial Emphasis – Prentice Hall, 12ª Ed, 2009.