Budgeting and Financial Forecasting syllabus

Budgeting and Financial Forecasting

• 1 Introduction to Budget (6 LHs)

  • Budget concept, importance, roles and users
  • Eight steps and methods for budget preparation
  • Ethics, problems and behavioral aspects
  • Budgetary control concept, objectives and limits
  • Responsibility accounting and budget centers
• 2 Zero Based and Activity Based Budgeting (4 LHs)

  • Zero-based and activity-based budgeting concepts
  • Objectives, advantages, limitations and procedures
• 3 Master Budget (15 LH)

  • Operating budgets: sales and production
  • Direct-material purchase and direct-labor budgets
  • Factory overhead, selling and administrative budgets
  • Budgeted income statement
  • Financial budgets: capital expenditure and cash
  • Budgeted balance sheet and performance report
• 4 Flexible Budget and Variance (6 LH)

  • Static and flexible budget concepts and need
  • Differences between static and flexible budgets
  • Overhead and three overhead variances
• 5 Standard Costing (7 LH)

  • Standard costing meaning, objectives and limits
  • Standard costing versus budgetary control
  • Direct material and labor variance analysis
• 6 Financial Forecasting (10 LH)

  • Forecasting meaning, objectives, scope and users
  • Financial-information characteristics and IFRS/NFRS framework
  • Ethics in financial reporting
  • Forecasting in budgeting: concept, importance and process
  • Qualitative methods: executive opinions, Delphi, sales force pooling and consumer survey
  • Quantitative methods: time series and pro-forma statements