Accountants and business decision makers who wants to understand concepts related to measuring and tracking company performance could benefit from this course. The course allows participants to become familiar with tracking 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 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.