Budget Management

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UNIVERSIDAD DE ESPECIALIDADES ESPIRITU SANTO
SCHOOL OF INTERNATIONAL STUDIES
INTERNATIONAL CAREERS PROGRAM
SYLLABUS
CLASS: BUDGET MANAGEMENT
PREREQUISITE(S): Financial Accounting
PREREQUISITE(S): Managerial Accounting
PROFESSOR: Oscar F. Briones
BIMESTER: Fall II 2006
CODE: FIN 361
CREDITS: 3
CODE: CON 101
CODE: CON 202
SCHEDULE: Mo – Th. 20:50 -22:10
CLASSROOM: G – 223.
HOURS OF HOMEWORK: 100
1. COURSE DESCRIPTIÒN
The Course is designed to automate and expedite the budgeting process. It makes the task of entering and manipulating budget
requests easier, and adds a management review process that facilitates the approval of the budget. Historical comparisons assist
the budget officer throughout the budgeting process. Once a final budget is approved it may be rolled automatically.
2. OBJECTIVES
General
Present the different Budgeting techniques according to different business. Provide the opportunity to work with real life methods,
exercises, and cases of Budgeting.
Specific
 Expand the current horizon of the Budgeting process
 Teach quantitative skills to Forecast Sales Budgets
 Cover the entire Budgeting process using vanguard techniques including spreadsheet applications
 Encourage students to learn and practice the Budget process in Manufacturing and Merchandising firms by working
on cases using MS Excel
 Analyze the differences between Budget and actual results
 Emphasis on the role of Budgeting in Finance Managers and organizations
 Gain in depth knowledge of the Accounting issues that Analysts and Managers need to deal with in the Budgeting
process.
2. GENERAL METHODOLOGY
Classes will be conducted by giving Lectures and using the Socratic method of questions and answers.
Before the daily Lecture, in every class a small review session will be conducted by the instructor. The student participation will
be graded by the instructor.
Read the material before coming to class.
Workshops and Homeworks must be turned in on time, (NO excuses for late assignments).
Assignments MUST be done using MS EXCEL and WORD. NO handwritten work will be accepted.
Students are expected to review class problems and end of the chapter exercises.
DATE
SPECIFIC
COMPETENCIES
Subject(s) to be
covered
Monday 30
October
Tuesday
31 October
Wednesday
1
CONTENT
Illustrate an in-depth
view of the Master Plan
Chapter 20. Master
Budget for a Retailer.
(Part I)
Chapter 20. Master
Budget for a Retailer.
HOMEWORK (100
HRS.)
Assignment & number
of allotted hours-specify
pages
Studying. (pages: 785 820).
36 pages
EVALUATION
How assignment will
be evaluated
Class Discussion,
Homework
Class Discussion /
November
(Part II)
Demonstrate the
Thursday 2 importance of the
November variation analysis
Monday 6
November
Identify the different
centers responsible for
company performance
Tuesday 7
November
Wednesday
8
November
Thursday 9
November
Chapter 24. Flexible
Budgets & Standard
Costs. (Part I)
Chapter 24. Flexible
Budgets & Standard
Costs. (Part II)
Chapter 25. Budgets &
Responsibility Centers
(Department &
Branches).
Studying. (pages: 935 –
970) 36 pages
Reading Control,
Application problem
(using Excel)
Class Discussion /
Reading Control
Class Discussion /
Reading Control
Studying. (pages: 971 1003) 33 pages
Class Discussion /
Reading Control
Chapter
2.
The Studying. (pages: 30 Fundamentals of Profit 70)
Planning and Control.
41 pages.
2.1 Management Planning
using Profit Planning and
Control
2.2 Time Dimensions of in
Profit Planning and Control
2.3 Management control of
Profit Planning and Control
2.4
Organizational
adaptation
of
Profit
Planning and Control
2.5 Coordination of Profit
Planning and Control
2.6 Formal versus Informal
Budgets
2.7 Flexibility in applying
Profit Planning and Control
Workshop, Problem
15 pages.
Solving
Class Discussion /
Written Quiz
Inform
the
complete Chapter 4. Application of Studying. (pages: 121process in a Manufacturing Comprehensive
Profit 170)
firm.
Planning and Control
50 pages
4.1
Introduction
and
purpose
4.2
Comprehensive
demonstration Case
4.3 Case Application of
Budget in a Manufacturing
enterprise
4.4 Illustration of the SMC
Monday 13
case in MS Excel
November
Chapter 4. Application of
Comprehensive Profit
Tuesday
Planning & Control
14
(Part II).
November
Book: Budgeting, Profit Studying. (pages 171 –
Wednesday
Class work,
Problems &
Discussion
Class Discussion /
Reading Control.
Class Discussion /
Reading Control.
Application problem
(using Excel)
Class Discussion /
15
November
Thursday
16
November
Provide the tools to forecast Planning and Control
209)
and implement a sales plan Chapter 5. Planning and 39 pages.
control of Inflows: Sales
and services
5.1 Sales planning
5.2 Comparison of the sales
plan & forecast
5.3 Development of a sales
plan
5.4 Control of sales and
expenses
5.5 Illustration of the SMC
case in MS Excel
5.6 Sales estimates:
Moving Average, Linear
Regression, Non linear
forecasts: Growth Function,
Exponential Smoothing.
Application of Forecasts
using MS. Excel commands
and examples.
Chapter 5. Planning &
Controlling Revenues:
Sales & Services (Part II)
Calculate efficiently the Chapter 6. Planning and Studying. (pages 210 –
optimum inventory levels control of Production. 239)
in a manufacturing firm
Inventory of Production 30 pages.
in process and finished
products
6.1 Purpose of Planning
and control of Production
6.2 Production Budget
6.3 Planning the needs of
Raw Materials
6.4 Production required
just-in-time
6.5 Production Budget as a
tool for planning,
coordinating and control
6.6 Illustration of the SMC
Monday 20
case in MS Excel
November
Ch. 6. Planning &
Controlling Production:
Work-in-process &
Finished-Goods
Tuesday
Inventories
21
(Part II)
November
Wednesday
Review
22
November
Thursday
MID – TERM
23
TEST
November
Chapter 7. Planning and Studying. (pages: 240 Monday 27
Reading Control.
Class Discussion /
Reading Control.
Application problem
(using Excel)
Class Discussion /
Reading Control
Class Discussion /
Reading Control.
Application problem
(using Excel)
Class Discussion
TEST
Class Discussion /
November
Tuesday
28
November
Examine
the
different control of Purchases and 279)
alternatives available to use of raw materials.
40 Pages
decrease production costs
7.1 Purpose of Planning
and control of Purchases
and use of raw materials
7.2 Raw Materials and
spare parts Budget
7.3 Planning, controlling,
coordinating Raw Materials
and spare parts Budget
7.4 Inventory levels and
purchases Planning
7.5 Illustration of the SMC
case in MS Excel
Ch. 7 Planning &
Studying.
Controlling Purchases &
Materials usage:
Manufacturing &
Nonmanufacturing
Class Discussion /
Reading Control,
Application problem
(using Excel)
(Part II).
Chapter 8. Planning and Studying. (pages:280 control of costs of direct 301)
labor
22 pages
8.1 Methods use in
planning costs of direct
labor
8.2 Structure of direct labor
budget
8.3 Control of costs of
direct labor
8.4 Illustration of the SMC
case in MS Excel
Ch. 8. Planning &
Controlling Direct Labor
Costs, Homework
(Part II)
Wednesday
29
November
Thursday
30
November
Identify, Examine the most
significant expense areas
and provide alternative to
decrease them.
Monday 4
December
Reading Control
Chapter 9. Planning and Studying. (pages: 302 control
of
Expenses: 342)
Indirect
Overhead, 41 pages
product quality costs,
Distribution costs.
9.1 Planning expenses
9.2 Control of Indirect
overheads
9.3 Production Costs
9.4
Indirect
Overhead
Budget
9.5 Planning costs of
manufactured products
9.6 Planning expenses of
distribution costs
9.7
Distribution
costs
Budget
9.8 Planning administrative
Class Discussion /
Reading Control
Class Discussion /
Reading Control.,
Homework,
Application problem
(using Excel)
Class Discussion /
Reading Control.
expenses
9.9 Planning the number of
employees
9.10 Illustration of the
SMC case in MS Excel
Ch. 9. Planning &
Controlling expenses:
Manufacturing OVH,
Distribution &
Tuesday 5
Administrative expenses
Part II
December
Calculate
the
expect Chapter 12. Planning and Studying. (pages: 433 inflows and outflows of control of Cash Flows
465)
cash for the coming period 12.1 Cash planning and 33 pages
budgets
12.2 Time horizon in
planning and control of
cash
12.3 Financial Accounting
method to calculate cash
flow
12.4 Planning and control
Wednesday
of cash for a non
6
manufacturing company
December
Ch.12. Planning &
Studying.
Controlling Cash Flows,
Quiz
Part II
Thursday 7
December
Workshop, Case
Studying. 20 pages
Analysis
Monday 11
December
Identify
the
inefficiencies
in
mismanagement
resources
Tuesday
12
December
main Chapter 16.
Variation Studying. (pages: 569 the Analysis: Results against 592)
of Budget.
24 pages
16.1 How to analyze the
Variations?
16.2
Systematization
formats
of
variation
analysis
16.3 Use of variation
analysis
16.4 Variation research and
explanation.
Ch.16 Analysis of Budget
Variances. Part II
Studying.
Wednesday
13
December
Thursday
14
December
Chapter 17. Coordinating Studying. (pages: 593 Accounting systems with 629)
profit planning and
37 pages
control.
Class Discussion /
Reading Control,
Application problem
(using Excel)
Class Discussion /
Reading Control
Class Discussion /
Reading Control,
Quiz, Application
problem (using
Excel)
Class Discussion /
Problem Solving,
Application problem
(using Excel)
Class Discussion /
Reading Control
Class Discussion /
Reading Control,
Application problem
(using Excel)
Class Discussion /
Reading Control
Monday 18
December
Tuesday
19
December
Wednesday
20
December
Thursday
21
December
17.1 Importance and
characteristics of a cost
effective Accounting
systems to support a profit
planning and control plan.
17.2. Cost, Profit and
Investment Centers
17.3 Flexible expense
budgets related to standard
costs
17.4 Integration of standard
costing and profit planning
and control.
Chapter 17. Coordinating
Accounting System with
Profit Planning & Control.
Part II.
Project Presentation
Studying.
15 pages
Class Discussion /
Reading Control,
Application problem
(using Excel)
Class Discussion
Review Session
Class Discussion
FINAL TEST
TEST
512 Pages
4. EVALUATION
Midterm exam: 25%
Final Exam:
25%
Quizzes
Projects
Case studies
Class Participation
20%
15%
10%
5%
5. CLASSROOM POLICIES
Attend every class; be on time, students are expected to participate in every class. Six absences are allowed. If you are late three
times it will be counted as an absence. There are no excused or unexcused absences.
Plagiarism will not be tolerated.
Turn Off the Cell phone in class
There will be NO allowance for coffee, cigarette or cell phone breaks.
6. BIBLIOGRAPHY:
COURSEBOOK: Glenn A. Welsch, Ronald W. Hilton, Paul B. Gordon, Budgeting, Profit Planning and Control, 5th edition,
Prentice-Hall
COMPLEMENTARY TEXT: Additional Handouts will be provided by the Professor
7. Additional Requirements:
A Financial calculator is required in every class.
Familiarity with MS Excel.
PROFESSOR INFORMATION:
NAME:
Oscar F. Briones
DEGREES: Master of Business Administration.
UNIVERSITY: University of Québec
Master en Administración de Empresas.
ESPOL – ESPAE.
Bachelor of Arts. Major in Economics.
University of South Carolina
EMAIL: [email protected]
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