Flexible Budget and Standard

Course Properties

Course date: 24-12-2017
Course End Date: 28-12-2017
Location Cairo

Course Objective:

               By the end of the program, participants will be able to:
                 • Understand the managerial accounting, cost accounting, and cost management systems,
                 • Undertake Cost behavior analysis and statistical process control,
                 • Understand the traditional two-stage cost allocation approach,
                 • Develop the master budget of financial plan,
                 • Evaluate and manage the standard full absorbation costing.

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Who Should Attend:

    This course is very valuable for Financial managers, accountants, auditors and all staff involved in the preparation of the budgets.

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Course Contents:

            1. INTRODUCTION TO MANAGERIAL ACCOUNTING, COST ACCOUNTING AND COST MANAGEMENT SYSTEMS

                               • LEARNING OBJECTIVES
                               • CONCEPTUAL VERSUS OPERATIONAL DEFINITIONS
                               • Cost Accounting’s Changing Emphasis
                               • SYSTEMS, PERFORMANCE MEASUREMENT, BEHAVIOR & VARIABILITY.
                               • THE MATCHING CONCEPT AND COST ACCOUNTING


                               • COST BEHAVIOR AND PREDICTION
                               • Relevance Of Framework To Accounting

          2. COST BEHAVIOR ANALYSIS AND STATISTICAL PROCESS CONTROL

                               • STATISTICAL CONTROL CONCEPTS AND TECHNIQUES
                               • Plotting Sample Means Rather Than Individual Observations
                               • Estimate of the Variability of the Sample Means
                               • Using the Control Chart
                               • Control limits for the R-chart


                               • Measuring Improvements in a System
                               • THE SPC CONCEPT AND THE DICHOTOMY OF CAPITALISM
                               • Case study and problems

          3. THE TRADITIONAL TWO STAGE COST ALLOCATION APPROACH

                               • INTRODUCTION
                               • CONCEPTS UNDERLYING COST ALLOCATIONS
                               • PURPOSES OF COST ALLOCATIONS
                               • THE SUPPORTING LOGIC OF COST ALLOCATION METHODS
                               • ALLOCATING SERVICE DEPARTMENT COSTS


                               • THREE WAYS TO ASSIGN SERVICE DEPARTMENT COSTS
                               • Single Plant Wide Overhead Rate
                               • Separate Departmental Overhead Rates: The Traditional Two Stage Approach
                               • Multiple Activity Based Overhead Rates For Each Department
                               • TYPES OF RELATIONSHIPS BETWEEN SERVICE DEPARTMENTS


                               • THREE METHODS FOR STAGE I ALLOCATIONS
                               • The Direct Method
                               • The Step-Down or Sequential Method
                               • The Reciprocal Method
                               • Comparing the Allocations from the Product Cost Perspective


                               •  Comparing the Allocations from the Service Cost Perspective
                               • THE DUAL RATE OR FLEXIBLE BUDGET ALLOCATION METHOD
                               • THE SINGLE BUDGETED RATE METHOD
                               • COMPARING DEPARTMENTAL AND PLANT WIDE RATES IN STAGE II

          4. THE MASTER BUDGET OR FINANCIAL PLAN 

                              • LEARNING OBJECTIVES
                              • INTRODUCTION
                              • Discretionary Costs
                              • Engineered Costs
                              • Committed Costs


                              • Four Types of Budgets
                              • Appropriation Budgets
                              • Flexible Budgets
                              • Capital Budgets
                              • Master Budgets


                              • Integrates and Coordinates
                              • Facilitates Evaluation and Control
                              • THE ASSUMPTIONS OF THE MASTER BUDGET
                              • RESPONSIBILITY ACCOUNTING
                              • PREPARING A MASTER BUDGET


                              • THE OPERATING BUDGET
                              • SALES BUDGET
                              • PRODUCTION BUDGET
                              • DIRECT MATERIAL BUDGET
                              • DIRECT LABOR BUDGET


                              • FACTORY OVERHEAD BUDGET
                              • ENDING INVENTORY BUDGET
                              • COST OF GOODS SOLD BUDGET
                              • SELLING & ADMINISTRATIVE EXPENSE BUDGET
                              • BUDGETED INCOME STATEMENT


                              • CASH BUDGET
                              • BUDGETED BALANCE SHEET
                              • EXAMPLES AND PRACTICE PROBLEMS


          5. STANDARD FULL ABSORPTION COSTING
                             • LEARNING OBJECTIVES
                             • INTRODUCTION
                             • TYPES OF STANDARD COSTING
                             • Complete Standard Cost Methods
                             • Partial Standard Cost Methods


                             • Other Uses of Standard Costs
                             • Cost Flow and Analysis in Complete Standard Costing
                             • METHOD 1: DM PRICE VARIANCE BASED ON QUANTITY PURCHASED
                             • The Equation Approach
                             • METHOD 2: DM PRICE VARIANCE BASED ON QUANTITY USED


                             • Flexible Budget Diagram Approach
                             • The Graphic Approach
                             • Direct Material Variance Causes and Tradeoffs
                             • Main Disadvantage of the Traditional Analysis
                             • A Flexible Budget Diagram For Variable Overhead Analysis


                             • Interpreting The Meaning Of The Traditional Variable Overhead Variances
                             • Diagram Of Fixed Overhead Variances
                             • The Graphic Approach For Fixed Overhead
                             • The Unplanned Production Volume Variance
                             • Summary Combined Overhead Analysis
                             • Potential Behavioral Problems Associated with Overhead Variances


        6. SUMMARY OF THE STANDARD COST CONTROVERSY PROBLEMS
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