Measuring Organizational Performance Including both Master and Flexible Budgets

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.