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Business Plans and Budgets

Course Code:

102

Semester:

1st Semester

Course Hours:

3

ECTS:

6


Course Outline

Learning Outcomes

The course of Business Plans and Budgets aims at providing graduate students with: a) comprehensive knowledge of the subject areas of ​​the course (analyzed in curriculum program) and b) the ability to apply theoretical knowledge to practice. Specifically, students will be familiarized with the following concepts:

  • Management accounting as an information and management system.
  • Cost-Volume-Profit Analysis
  • Budgeting and Budgetary Control (Master Budgeting, Budgeting Assumptions, Sales Budget, Production Budget, Inventory Purchases, Direct Materials Budget, Direct Labor Budget, Manufacturing Overhead Budget, Ending Finished Goods Inventory, Selling and Administrative Expense Budget, Cash Budget, Budgeted Income Statement, Budgeted Balanced Sheet, Static and Flexible Budgets, Human Factors in Budgeting, Advances and Deficiencies of Budgets, Capital Budgeting)
  • Performance Measurement in Decentralized Organizations, Responsibility Accounting, Segment Reporting, Evaluation of Investment Centers
  • Decision making based on differential, relevant and opportunity cost
  • Variable Costing and Segment Reporting
  • Contemporary Budgetary and Costing Systems

 

General Competences

  • Decision making
  • Production of new research ideas
  • Production of free, creative, and inductive thinking
  • Working independently
  • Respect for difference and multiculturalism
  • Respect for natural environment
  • Showing, social, professional, and ethical responsibility and sensitivity to gender issues

 

Syllabus

  • Presentation of Management Accounting Pillars (Programming, Decision Making, Control, Costing)
  • Financial versus Management Accounting-characteristics, differences and interconnections.
  • Basic concepts of Budgeting, Use, Concepts and distinctions of Budgeting (Budget periods-short and long term-, Bottom-up, Top-Down, Mixed approach, Zero-based, Incremental Budgets)
  • Human Factors in Budgeting
  • Flexible Budgets (use, usefulness, examples)
  • Variable and Fixed Costs- Cost Behavior and Budgets
  • Characteristics and Usefulness of Flexible Budgets Analysis (Activity Variances, Spending Variances, Performance Reports)- Examples
  • Capital Budgeting, Decisions and Evaluation Methods
  • Segments’ Performance Evaluation
  • Performance Evaluation-Review Problems
  • Responsibility Accounting (Cost, Profit, Investment Centers)
  • Transfer Pricing (Applications, Approaches, Negotiated Transfer Prices Range of Acceptable Transfer Prices, Idle capacity, Transfer Prices at Cost, Transfers at Market Price, International Aspects of Transfer Pricing, Transfer Prices and Divisional Performance- Examples and Exercises)
  • Full Absorption Costing and Variable Costing (characteristics, structure, implementation, differences, information and usefulness)