Budgeting, Forecasting and Planning

Day 1: Introduction

• The Planning Process
• Need and system of Plans
• Steps in Developing the Near-Term Sales Plan
• Sales Forecasting
• How to measure cost behaviour using the account analysis, high-low, visual-fit, and least-squares regression Methods?

Day 2: Budget and Budgeting

• Definition of Budget 
• Strategic Focus on Budgeting
• What are the Advantages of Budgets?
• Management Support
• Time Coverage of Budgets
• Types of Budgets

Day 3: Budgeting and Planning

• Strategic Planning and Budgeting Process 
• Why must you link budgeting and Forecasting to Planning and Performance?
• Budget Participants and Budget Preparation Procedure.
• Participative Budgeting and the Importance of Communication in an Effective Planning Process.
• Building the Budgeting Model
• Prepare the budget structure
• Writing the budges
• Monitoring
• Comprehensive (Master) Budgeting
• How to manage the cash Resource
• Objectives of Cash flow and Working Capital Management
• Cash flow Reporting

Day 4: 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

Day 5: Budgeting and Control

• Flexible Budget and Overhead Analysis
• The advantages of the flexible budget approach over the static budget approach.
• Prepare a performance report for 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 spending and efficiency variance.
• Explain the significance of the denominator activity figure in determining the standard cost of unity of the 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