Budgeting (ACCA) 2400-ZEWW943(ACCA)
1. The essence, goals and functions of budgeting.
2. The place of budgeting in the management process.
Budgeting as an element of planning. Budgeting stages.
3. Types of budgets. Budgeting methods: conventional and rolling budgeting, zero-based and incremental budgeting, topdown and participatory budgeting, activity-based budgeting, functional budget.
4. The use of quantitative methods in budgeting.
5. Elements of the leading (master) budget: operational and financial budget and their individual parts. Creating a budget - case studies.
6. Budgetary control in the enterprise. Actual, planned and recalculated budget.
7. Standard costing.
8. Calculation of various types of deviations from budgeted values. Analysis of the cause of deviations.
9. Behavioral aspects of budgeting.
10. Criticism of traditional budgeting. Management without budgets - the beyond concept budgeting.
Type of course
Course coordinators
Learning outcomes
A) knowledge
Student
- has knowledge of the essence of the budgeting process in the company,
- knows traditional and modern methods of creating a budget in an enterprise,
- knows the advantages and disadvantages of various budgeting methods, including their behavioral aspects,
- knows quantitative methods used in budgeting, such as the minimum and maximum value method, the learning curve method,
- knows the limitations of using quantitative methods in budgeting,
- knows the methods of setting cost standards,
- has knowledge of the use of standard costs in the budgeting process,
- knows the differences between the cost standard and the cost budget,
- knows the concept of controllable and uncontrollable costs,
- knows the risks associated with the budget revision process,
- has knowledge of the objectives and methods of budgetary control,
- knows the importance of accountability for the budgetary control process,
- knows the limitations of the traditional budgeting model,
- knows the challenges of changing the budgeting system,
- knows the concept of management without budgets and its limitations.
B) skills
Student
- can determine the place of budgeting in the process of managing a company,
- can indicate the information necessary to prepare a budget and their sources,
- can describe the stages of budgeting,
- knows how to explain the role of employees in the process of creating a budget and the impact of budgeting on the motivation of employees and managers,
- is able to choose the appropriate budget system for a particular company and justify your choice,
- is able to prepare individual budgets that make up the leading budget,
- knows how to prepare a recalculated budget and calculate the deviations resulting from the change business size,
- can apply various quantitative methods in the budgeting process, including the ability to extract fixed and variable costs using the extreme value method, can estimate the learning rate and learning effect, and can indicate the advantages and disadvantages of using spreadsheets in budgeting,
- can explain the principles and objectives of standard costing,
- can calculate and interpret various deviations from budgeted values, e.g. deviations in the costs of direct materials, payroll and departmental costs, as well as deviations in sales in both full and variable costing companies, and indicate the reasons for these deviations, - is able to calculate and indicate the causes of deviations that make up the deviation in the consumption of direct materials and deviations in the sales volume and indicate their possible causes,
- can prepare a revised budget,
- can calculate and identify the causes of operational and budget revision deviations regarding sales, direct materials and labor costs,
- can identify and explain the links between different types of deviations and propose actions to eliminate deviations,
- can reconcile the planned budget with the actual one, - can identify the risks associated with traditional budgeting.
C) social competence
Student
- understands the importance of budgeting in the business management process and for the motivation of employees and the actions they take,
- shows willingness to independently expand his knowledge,
- able to cooperate and work in a group,
- able to present and justify their views,
- knows how to participate in a discussion.
Assessment criteria
Mandatory presence. Credit based on a written exam at the end of the semester (80% of the final grade), activity and work during classes (20% of the final grade). To pass the course, student must obtain at least 50% of the points from the colloquium, and also - at least 50% of all possible points.
Additional information
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