Cost Management, Finance & Banking

 Planning & Controlling Production Budget

With companies operate in a more competitive and unpredictable environment, it is critical to implement the right planning and control processes as parts of every manager’s initiatives and budgeting activities.

This course will explain the planning and control process from the organizational financial standpoint as an interactive cycle consisting of two major phases that involves looking forward into the future to plan (i.e. planning process), and then looking back to see how we did relative to the plan (i.e. control process).

The first phase of the cycle is the planning process. This is the forward looking aspect of the cycle, where management prepares forecasts, estimates and projections of what it expects to happen in the future.

The second phase of the cycle is called the control process. This is the backward looking aspects of the cycle, where actual results are compared to the planned, or budgeted, results.

The difference between actual and budgeted results is called a variance.

Course Outlines

• Role of budgets and variances in the planning and control cycle.
• Different types of budgets and their relations.
• Master budget components.
• Difference between the master budget and flexible budget and their roles.
• Differences in profit between the master budget, flexible budget and actual results, and the source of these differences.
• Cost, Revenue and Volume Variances.

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