Budget Control

Knowledge of Financial Accounting , Management Accounting, and Introduction to Management

Theoretical-practical classes are taught in person in the classrooms and at the times defined for the class.

The expository method will be used for theoretical classes, characterized by clarity, expressiveness, enthusiasm. To promote interaction with students, the interrogative method will also be used.

Objectives and Skills to Develop
Goals:
The curricular unit, (UC), of BUDGET CONTROL is part of the scientific area of ​​Accounting, Auditing and Taxation, and its main objectives are:

– 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;
• Skills for working in groups.

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 know how to dialogue with stakeholders

Program
PART I – THE PLANNING AND CONTROL PROCESS

1.The management process

2. Management functions

3.The nature of Budgets and Budget Control

PART II – THE BUDGETING PROCESS

4. The process of preparing Budgets. Information, Forecasting and Budgeting

6. Budgeting and Uncertainty

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

8.Internal Transfers

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

PART IV – THE IMPLEMENTATION OF BUDGET CONTROL

14. Behavioral aspects

15. Implementation methodology

16.The function of the “Controller”

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.