Accountants and business decision-makers who want to understand concepts related to measuring and tracking company performance could benefit from this course. The course allows participants to become familiar with tracking the performance of a decentralized organization as well as understanding the benefits and key pieces of both a Master budget and a Flexible budget.
Learning Objectives
- Performance Measurement and Responsibility Accounting
- Compare the advantages and disadvantages of a decentralized organization.
- Demonstrate an understanding of financial and non-financial performance evaluation for cost centers, profit centers, and investment centers as applicable.
- Demonstrate an understanding of controllable and uncontrollable costs, direct and indirect expenses, and the allocation of indirect expenses.
- Master Budgets
- Discuss the benefits, timing, and components of a Master budget.
- Explain the components of a Master budget including the Operating budget, Cash budget, and budgeted Financial Statements.
- Flexible Budgets
- When comparing budgeted results to actual results discuss the advantages of a Flexible budget compared to a fixed budget.
- Explain the per unit and total costs behavior of variable and fixed costs as production amounts change within the relevant range.
- Demonstrate an understanding of setting Flexible budget standard costs including the calculation of variances for direct material, direct labor, and manufacturing overhead.