1 week course on Budget Control & Responsibility Accounting
What you'll learn
- How to develop and use the flexible budget to evaluate managers.
- Performance evaluation techniques of managers such as responsibility accounting
- Responsibility centres - Cost, revenue, profit and investment
- Understand the balanced scorecard and how it is used to evaluate management performance
Budgetary control is the process by which budgets are prepared for the future period and are compared with the actual performance for finding out variances if any. The comparison of budgeted figures with actual figures will help the management to find out variances and take corrective actions without any delay.
Budgetary control has become an important tool of an organization to control costs and to maximize profits. Some of the advantages of budgetary control are:
1. It defines the goals, plans and policies of the enterprise. If there is no definite aim then the efforts will be wasted in achieving some other aims.
2. Budgetary control fixes targets. Each and every department is forced to work efficiently to reach the target. Thus, it is an effective method of controlling the activities of various departments of a business unit.
Responsibility accounting is a system of accounting where specific persons are made responsible for the accounting of particular areas and cost control. If that cost increases, then the person will be held accountable and answerable. In this type of accounting system, responsibility is assigned based on a person’s knowledge and skills, and the proper authority is given to that person so that he can make a decision and show his performance.
Advantages of Responsibility Accounting
1. Responsibility accounting delegates decision making. Line managers, department heads, and supervisors are entrusted with operational decisions. The top management (executives) could then focus on strategic or long-term organizational objectives.
2. It provides a guide to the evaluation of performance. It helps to establish standards which are used for comparison with actual results.
3. It promotes management by objectives and management by exception.
Who this course is for:
- Students of effective management
I am a Professor of Accounting with over thirty-five years experience teaching accounting to college students, undergraduate and MBA university students as well as CMA candidates seeking to earn their Professional Certified Management Accountant Designation.
I achieved my Certified Management Accountant Designation 40 years ago. With that I then earned my Masters of Business Administration degree and later a PHD in accounting.
I have developed and will continue to develop a number of courses in both Financial Accounting and Management Accounting for you - a college or university student (or even a secondary student) to help you to achieve the best result in your undergraduate accounting course. If you get an "A" from me I guarantee you will get an "A" from your accounting prof.
For Graduate students, I have a course to prepare those of you who do not have a business degree for the Masters of Business Administration. Also I have a course at the masters level called Managerial Accounting.
For CMA Candidates, I have courses to prepare you to successfully pass their Certified Management Accounting Exams offered by Institute of Management Accountants.