Planning, Budgeting and Control

Students must have prior knowledge in:

• Management and Administration, namely with regard to the management cycle and the various functional areas of organizations;
• Financial Accounting, namely with regard to Financial Statements and the Accounting Standardization System in general;
• Management Accounting, namely with regard to the different types of expenses and income and respective calculation methodologies.

In this subject, active teaching, learning and assessment strategies are followed, in which the student is at the center of the process and in which the teacher assumes the role of facilitator of learning.

Classes are theoretical-practical, including theoretical exposition components, exposition of practical case resolution, resolution of practical cases by students and respective discussion and presentation of work developed by students outside of class.
Students are encouraged to intervene in the discussion of the themes taught, and interventions may focus on aspects raised by their own personal and professional experience.
The work to be carried out by students outside the classroom, aims to develop their critical spirit, their ability to synthesize and guidance to obtain relevant results.

Goals:

1) Conceive and develop a management information system, in coordination with all business areas, aiming to:

1.1) Materialize the information in management instruments that allow predicting, with some security, the future of the organization;

1.2) Control the activity;

1.3) Support decision-making processes.

2) Know, understand and apply the techniques related to:

2.1) The preparation of the annual plan of activities;

2.2) The elaboration of budgets by functions and centers of responsibility;

2.3) Budgetary control, in conjunction with strategic planning.

3) Establish the methodology for implementing a budget system.

Students must acquire the following skills:

• Know how to prepare the company’s strategic plan
• Know how to prepare and articulate plans, programs and budgets, globally and functionally.
• Know how to prepare forecasts, calculate and analyze deviations and take corrective measures;
• Know how to prepare a planning, budgeting and performance evaluation model, supported by IT tools, which allows to prepare the operational plan, the annual budget and calculate budget deviations, simulate corrective actions, and measure the respective impact on results.

1. Planning, Budgeting and Control and the Management Cycle

The management and functions of the manager
The functions and planning process
The budget as a planning tool

2. Planning, Budgeting and Control: Concepts

The budget and its determining role in achieving the organization’s goals
Alignment between budget and organizational strategy
Strategy, planning, budgeting and control
Strategic and operational planning.

3. The Budget Process

Preparation of programs/plans
Budgeting and articulation
Management indicators
Budgeting Processes
Behavioral aspects associated with budget management

4. Budget Control: calculation and analysis of variances

NAO

Fundamental bibliography:

• Cokins, G.; Juras, P.; David, S.; Blocher, E. (2016), Cost Management: A Strategic Emphasis, 7nd edition, McGrawHill (ISBN: 9780077733773);
• Drury, C. (2018), Management and Cost Accounting, 10th Ed., Cengage Learning (ISBN: 9781473748873);
• Horngren, C.T.; Rajan, M, Bhimani, A.e Datar, S.M. (2015), Management and Cost Accounting, 6th Edition, Pearson (ISBN 9781292063461).

Complementary bibliography:

• Anthony, R.N.; Govindarajan, V.; Hartmann, F.; Kraus, K.; Nilsson, G. (2014). Management Control Systems: First European Edition, McGraw-Hill (ISBN9780077133269);
• Jordan, H; Neves, J. C.; Rodrigues, J.A. (2015), O Controlo de Gestão ao Serviço da Estratégia e dos Gestores, 10ª Ed., Áreas Editora (ISBN 9789898058683);
• Major, M. e Vieira, R. (Ed.) (2018) Contabilidade e Controlo de Gestão: Teoria, Metodologia e Prática, Lisboa, Escolar Editora (ISBN 9789725925218).