Name: Flexible Budgets, Standard Costs, & Variance Analysis
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Created byRobert (Bob) Steele

Last updated 11/2024

English

What you'll learn

Differentiate between managerial accounting and financial accounting, understanding their distinct roles and objectives in business decision-making.
Apply flexible budgeting techniques, demonstrating an understanding of their benefits and how they can be utilized to adapt to changing business conditions.
Analyze standard costs and perform cost variance analysis, interpreting the variances to identify areas of cost inefficiencies and opportunities for improvement
Calculate and interpret sales variances, evaluating the impact of sales performance on overall profitability and making informed decisions based on the analysis
Perform direct materials variance analysis, assessing the efficiency and effectiveness of material usage and identifying potential cost-saving opportunities.
Evaluate direct labor variances, understanding the factors that contribute to labor cost variations and implementing strategies for better labor cost management
Interpret overhead variances, analyzing the discrepancies between actual and budgeted overhead costs and identifying potential areas for cost control.
Solve comprehensive problems related to overhead variance analysis and variance analysis, integrating knowledge and skills to make informed decisions and provid
Apply Excel skills to construct and analyze budgets, utilizing preformatted worksheets and step-by-step instructional videos for effective budgeting processes.
Demonstrate critical thinking and problem-solving abilities in real-world scenarios, utilizing variance analysis and budgeting techniques to support strategic d

Course content

10 sections • 91 lectures • 7h 59m total length

Introduction5:04
Develop skills to make better business decisions using flexible budgets and variance analysis, compare actual results to forecasts, and apply standard costs to materials, labor, and overhead variances.
PDF - 150 Budgetary Controls and Reporting0:08
Access a downloadable PDA file to supplement the instructional video on budgetary controls and reporting for the course flexible budgets, standard costs, and variance analysis.
150 Budgetary Controls and Reporting6:27
Explore budgetary controls and reporting with a focus on the flexible budget, comparing actual results to budgeted figures and analyzing variances to guide revisions.
PDF - 160 Budget Options0:08
The next presentation offers a downloadable PDA file to supplement the instructional video for the PDF - 160 budget options lecture.
160 Budget Options8:47
Explore master budget components and compare fixed versus flexible budgets, using sales, production, and overhead plans to analyze variances and achieve apples-to-apples performance measurements.
Multiple Choice Questions 15:10
Practice multiple choice questions on flexible budgets and standard costs, and apply test-taking strategies. Identify standard costs as preset costs for delivering a product or service under normal conditions.
Accounting Comic0:15
Discover flexible budgets, standard costs, and variance analysis in accounting, delivered through an engaging comic format.

2 Managerial Accounting Overview0:18
Review general managerial accounting topics to reorient toward the managerial accounting mindset, contrasting with financial accounting, and prepare for the rest of the course.
PDF - 10 Managerial Accounting Introduction0:08
Access a downloadable PDA file to supplement the instructional video for the managerial accounting introduction in the course on flexible budgets, standard costs, and variance analysis.
10 Managerial Accounting Introduction13:03
Introduce managerial accounting and contrast it with financial accounting, emphasizing internal decision making, customized management reports, and future-focused cost-benefit analysis to guide planning.
PDF - 20 Cost Classifications0:08
Download a PDA file to accompany the PDF - 20 cost classifications lecture video as a supplement.
20 Cost Classifications9:31
Classify costs by behavior into fixed and variable to support projections. Identify direct and indirect costs, allocate overhead, and apply these classifications to inventory valuation in managerial accounting.
PDF - 30 Product Costs & Period Costs.ENCODING0:08
Access a downloadable PDA file to supplement the instructional video for flexible budgets, standard costs, and variance analysis.
30 Product Costs & Period Costs16:25
Identify and classify product costs (direct materials, direct labor, overhead) and period costs (selling and administrative), and learn how overhead is allocated to inventory in manufacturing, with examples like guitars.
PDF - 40 Prime Costs & Conversion Costs0:08
Download a PDA file to supplement the instructional video and reinforce learning on prime costs and conversion costs.
40 Prime Costs & Conversion Costs5:35
Explore prime costs and conversion costs within production budgeting, detailing direct materials, direct labor, and overhead, and contrast with direct versus indirect costs in job and process cost systems.
PDF - 50 Manufacturer's Balance Sheet0:08
Download a PDA file to supplement the instructional video on the manufacturer's balance sheet for learners.
50 Manufacturer's Balance Sheet3:15
Compare a manufacturer's balance sheet with service and merchandising firms, showing inventory as a current asset, including raw materials, work in process with direct labor and overhead, and finished goods.
PDF - 60 Manufacturer's Income Statement0:08
Provide a downloadable pda file to supplement the instructional video for the pdf 60 manufacturer's income statement.
60 Manufacturer's Income Statement8:49
Compare the cost of goods sold for manufacturers and merchandisers, and explain how beginning inventory, purchases, cost of goods manufactured, and finished goods determine inventory costs.
PDF - 70 Manufacturing Activities Flow0:08
The next presentation provides a downloadable PDA file and a PDF resource to supplement the instructional video.
70 Manufacturing Activities Flow7:51
Trace the manufacturing activities flow—from materials, direct labor, and overhead—to the cost of goods manufactured and cost of goods sold, including the impact of work in process and finished goods.
PDF - 80 Just In Time (JIT) Manufacturing0:08
Access a downloadable PDA file to supplement the instructional video on just in time manufacturing.
80 Just In Time (JIT) Manufacturing2:58
Explore the just-in-time manufacturing concept, where production starts after a customer order, enabling customization and reduced inventory while emphasizing supplier coordination and risks if any processes fail.
Multiple Choice Questions 23:40
Practice solving multiple choice questions on flexible budgets and standard costs, focusing on price variance, quantity variance, and budget variance to sharpen variance analysis skills.
Accounting Comic0:15
Explore flexible budgets, standard costs, and variance analysis through an engaging accounting comic that clarifies core budgeting concepts.

3 Flexible Budget0:40
Explore flexible budget concepts and contrast them with fixed budgets, highlighting when to use them for managerial accountants. Practice with Excel worksheets and step-by-step videos.
PDF - 170 Flexible Budget Benefits0:08
Access a downloadable PDA file that supplements the instructional video, illustrating flexible budget benefits and supporting the course on flexible budgets, standard costs, and variance analysis.
170 Flexible Budget Benefits9:34
Compare flexible budgets to fixed budgets using a contribution margin framework to enable apples-to-apples variances and what-if planning based on the same unit level.
PDF - 175 Flexible Budget0:08
Explore the pdf 175 flexible budget and use the downloadable pda file as a supplement to the instructional video.
175 Flexible Budget13:25
learn how to build a flexible budget from a static budget by classifying costs into fixed, variable, and mixed categories, and use it to forecast profit across different production levels.
Download Backup Files0:05
Download an Excel worksheet from the upcoming presentation to practice flexible budgets and variance analysis.
Worksheet - 175 Flexible Budget18:46
Transform the fixed budget into a flexible budget by classifying costs as fixed or variable, then project contribution margin and income from operations for different unit levels.
177 Flexible Budget Compared To Actual13:15
Create and compare a flexible budget to actual production, analyze variable versus fixed costs to explain variances and improve accountability in managerial accounting.
Excel Worksheet Download0:05
Download an Excel worksheet in the upcoming presentation to follow along and practice with the provided file.
Worksheet - 177 Flexible budget compared to actual part 113:04
Convert the fixed budget to a flexible budget using actual production of 21,000 units and analyze variable versus fixed costs to reveal per-unit costs and contribution margins for performance assessment.
Worksheet - 178 Flexible budget compared to actual part 212:29
Build a flexible budget from actual production, compute variable and fixed costs, compare actual outcomes to budget, and analyze variances and contribution margin to identify favorable and unfavorable differences.
Multiple Choice Questions 34:18
Practice multiple choice questions on flexible budgets, standard costs, and variance analysis, including identifying cost variances and applying elimination strategies to deepen test-taking skills.
Discussion Question 2
Accounting Comic0:15
Explore flexible budgets, standard costs, and variance analysis through an engaging accounting comic that simplifies key cost concepts for practical understanding.

4 Standard Costs & Cost Variance Analysis Overview0:25
Explore standard costs and cost variance analysis overview, learn what the tool is used for, and preview how to apply, calculate, and use the cost variance analysis tools.
PDF - 180 Standard Costs0:08
Download a PDA file to supplement the instructional video and the pdf on 180 standard costs.
180 Standard Costs8:46
Explore standard costs as preset, future-oriented budgets for production under normal conditions, developed by a cross-functional team and used to analyze variances against actual costs.
PDF - 190 Cost Variance Analysis0:08
Download the downloadable PDA file that supplements the instructional video and supports learning about cost variance analysis.
190 Cost Variance Analysis10:54
Explore cost variance analysis: compare actual to standard costs, prepare the standard cost performance report, and learn variance concepts like unfavorable and favorable variances and CV, AC, SC.
Multiple Choice Questions 45:22
work through multiple choice questions on flexible budgets and standard costs. sharpen test-taking skills while reviewing price, quantity, and sales variances and the master budget concept.
Discussion Question 3
Accounting Comic0:15
Explore flexible budgets, standard costs, and variance analysis through an accounting comic. See how these accounting concepts connect for practical budgeting and cost analysis.

5 Sales Variance Analysis0:38
Explore sales variance analysis by breaking budgeted versus actual sales into component parts and using tools for management, supported by PowerPoint, Excel worksheets, and step-by-step videos.
PDF - 195 Sales Price & Volume Variance0:08
Access a downloadable file that serves as a supplement to the instructional video, reinforcing sales price and volume variance concepts for flexible budgets, standard costs, and variance analysis.
195 Sales Price & Volume Variance7:28
Break budgeted versus actual sales into price and volume variances, revealing a 29,500 unfavorable price variance and 50,000 favorable volume variance, totaling 20,500.
Excel Download0:05
Download an Excel worksheet to practice flexible budgets, standard costs, and variance analysis concepts for the course.
Worksheet - 195 Sales Price & Volume Variance7:05
Calculate and break down sales variance into price and volume components by comparing actual and budgeted quantities and prices, illustrating standard costs and variance analysis.
Multiple Choice Questions 54:00
Practice solving multiple choice questions on flexible budgets, standard costs, and variance analysis, using elimination to identify when budgets reflect multiple activity levels and when they are fixed.
Discussion Question 4
Accounting Comic0:15
Examine how flexible budgets, standard costs, and variance analysis illuminate budget performance through an accounting comic.

6 Direct Materials Variance Analysis0:30
PDF - 196 Variance Analysis Direct Material Price Variance & Quantity Variance0:08
Access a downloadable PDA file to supplement the instructional video on variance analysis, including direct material price variance and quantity variance.
196 Variance Analysis Direct Material Price Variance & Quantity Variance12:13
Learn to apply variance analysis to direct materials by building a flexible budget. Compare actual costs to standard costs to compute price and quantity variances.
Excel Worksheet Download0:05
Download the Excel worksheet provided in the next presentation to practice flexible budgets, standard costs, and variance analysis.
Worksheet - 196 Variance analysis part 1 direct materials price and quantity var13:00
Analyze cost variance analysis, including direct material price variance and quantity variance, direct labor rate and efficiency variance, and overhead controllable and fixed overhead volume variances within a flexible budget.
Multiple Choice Questions 64:12
Practice solving multiple choice questions on flexible budgets and standard costs, using elimination to identify variable and flexible budgets, and determine that favorable variance occurs when revenue exceeds budgeted revenue.
Discussion Question 5
Accounting Comic0:15
Explore how flexible budgets adapt to actual outcomes, examine standard costs, and conduct variance analysis through an engaging accounting comic.

7 Direct Labor Variance Analysis0:30
Explore direct labor variance analysis, its components, and calculation methods using PowerPoint, preformatted Excel worksheets, and step-by-step instructional videos.
PDF - 200 Variance Analysis Direct Labor Rate Variance & Efficiency Variance 2300:08
Download a supplementary file to accompany the instructional video on variance analysis, featuring direct labor rate variance and efficiency variance concepts.
200 Variance Analysis Direct Labor Rate Variance & Efficiency Variance 230010:48
Explore variance analysis for direct labor, calculating rate variance and efficiency variance within a flexible budget, comparing actual hours and costs to standard costs to assess performance.
Excel Worksheet Download0:05
Download the excel worksheet included in the upcoming presentation to practice flexible budgets, standard costs, and variance analysis.
Worksheet - 200 Variance analysis Part 2 direct labor rate and efficiency6:11
Analyze direct labor rate and efficiency variances, using actual and standard hours and rates, then evaluate overhead control and fixed overhead variances for favorable outcomes.
Multiple Choice Questions 73:54
Explore flexible budgets and standard costs through multiple choice questions, and practice applying variance analysis to compare actual performance with budgeted performance at the actual sales volume.
Discussion Question 6
Accounting Comic0:15
Explore how flexible budgets, standard costs, and variance analysis illuminate managerial accounting concepts through a lighthearted accounting comic approach.

8 Overhead Variance Analysis0:32
Explore overhead variance analysis, its components, and calculation methods using PowerPoint, downloadable Excel worksheets, and step-by-step instructional videos.
PDF - 310 Overhead Cost Variances0:08
Explore overhead cost variances within flexible budgets and standard costs, and apply variance analysis concepts, supported by a downloadable pdf file that supplements the instructional video.
310 Overhead Cost Variances10:55
Explore overhead cost variances by applying a predetermined overhead rate to standard activity, separating fixed and variable components, and using flexible budgets to analyze controllable and volume variances.
Excel Worksheet Download0:05
Access a downloadable excel worksheet to practice flexible budgets, standard costs, and variance analysis, enabling hands-on application during the upcoming presentation.
Worksheet - 310 Overhead Controllable Variance & Volume Variance16:55
Explore overhead controllable variance and volume variance by comparing actual overhead to a flexible budget and budgeted overhead, using variable and fixed cost analysis.
Excel Worksheet Download0:05
Download an Excel worksheet in the upcoming presentation to practice with flexible budgets, standard costs, and variance analysis.
Worksheet - 312 Overhead Spending & Efficiency Variance10:17
Compute overhead variance by comparing actual vs standard machine hours and variable overhead rates to derive the total variable overhead cost variance, variable overhead spending variance, and efficiency variance.
Multiple Choice Questions 85:26
Explore multiple choice questions on flexible budgets and standard costs, and practice test-taking skills for sales variance analysis and planning and control in budgeting.
Multiple Choice Questions 94:15
Practice multiple choice questions on flexible budgets, standard costs, and variance analysis, focusing on direct materials price variance and overhead variance within a flexible budget framework.
Short Calculation Questions12:46
Learn to compute overhead variances from a flexible budget and analyze direct labor rate variance and material quantity variance using standard costs and actual hours.
Discussion Question 7
Accounting Comic0:15
Explore how an accounting comic visualizes flexible budgets, standard costs, and variance analysis, turning core cost-management concepts into engaging, memorable lessons.

9 Overhead Variance Comprehensive Problem0:55
Tackle overhead variance with a comprehensive problem using Excel worksheets featuring three tabs: answer, a preformatted fillable sheet with step-by-step videos, and a blank workspace.
Excel Worksheet Download0:05
An Excel worksheet will be provided in the next presentation for download. Use the worksheet to explore flexible budgets, standard costs, and variance analysis.
Worksheet - 400 overhead Variance Comp13:41
Explore overhead variance analysis by comparing actual overhead to standard and flexible budgets, focusing on variable and fixed overhead spending and efficiency variances using direct labor hours.
Accounting Comic0:15
Explore flexible budgets, standard costs, and variance analysis through an engaging accounting comic that clarifies key concepts with concise explanations.

10 Comprehensive Problem0:54
Explore variance analysis through a comprehensive problem using Excel worksheets in a step-by-step format, featuring an answer tab, a pre-formatted fillable tab, and a blank practice sheet.
Excel Worksheet Download0:05
The next presentation includes a downloadable Excel worksheet to support budgeting and variance analysis practice.
Comp Prob 1 Data6:22
Organize data in Excel by separating text, numbers, and references; compute standard costs for materials, labor, and overhead; compare to actual costs and develop a flexible budget with variance analysis.
Comp Prob 2 Flexible Overhead Budgets15:35
Learn to build a flexible overhead budget from a 20,000 unit capacity across 65%, 75%, and 85% levels, calculating variable costs per unit and fixed costs to total overhead.
Comp Prob 3 Direct materials cost variance15:29
Examine the direct materials cost variance by calculating total variance, then break it into price and quantity variances using pictorial and formula methods within a flexible budget framework.
Comp Prob 4 Direct labor cost variance14:52
Explore direct labor cost variance analysis, including calculating actual versus standard costs and breaking the results into rate and efficiency variances to interpret favorable and unfavorable outcomes.
Comp Prob 5 Overhead Variance Report7:02
Explore the overhead variance report by comparing the flexible budget to actual results, analyzing volume, variable, and fixed cost variances, and identifying favorable or unfavorable differences.
Multiple Choice Questions 109:39
Practice solving multiple choice questions on flexible budgets, standard costs, and variance analysis, including production, volume, overhead, and controllable variances.
Accounting Comic0:15
An accounting comic explains flexible budgets, standard costs, and variance analysis in an engaging, approachable way.

Requirements

Basic Accounting Knowledge: Familiarity with fundamental accounting principles, including an understanding of financial statements, terminology, and basic accounting concepts.
Managerial Accounting Foundations: A solid understanding of managerial accounting principles, such as cost behavior, cost classification, cost-volume-profit analysis, and basic cost accounting techniques.
Willingness to Learn: An eagerness to expand knowledge in managerial accounting tools, variance analysis, and cost management, along with a commitment to actively engage with course materials, participate in hands-on exercises, and apply learned concepts.

Description

This comprehensive Udemy course combines insights from college topics generally covered by managerial accounting textbooks with practical applications to provide a deep understanding of essential tools in managerial accounting.

To set the right foundation, we begin by introducing managerial accounting topics and contrasting them with financial accounting. This establishes the correct mindset for the course, ensuring a clear understanding of the distinctive features and objectives of managerial accounting.

We then delve into flexible budgets, exploring their advantages over static or fixed budgets. Through interactive example problems and step-by-step instructional videos, you will grasp the benefits of flexible budgets and learn how to utilize them effectively.

Next, we define and analyze standard costs and cost variance analysis. While providing an overview of cost variance analysis concepts, we will progressively dive deeper into each topic, equipping you with practical skills to identify and interpret cost variances.

Sales variance analysis will be thoroughly covered, including its purpose, calculation methods, and real-world applications. By working through example problems and following detailed instructional videos, you will gain hands-on experience in calculating sales variances.

Direct materials variance analysis will be explored comprehensively, demonstrating its practical use and calculation methods. Through instructional videos and example problems, you will master the application of direct materials variance analysis concepts.

Direct labor variance analysis will also receive extensive attention, ensuring a comprehensive understanding of its purpose and applications. Through instructional videos and practical examples, you will acquire the skills to calculate and interpret direct labor variances.

Overhead variance analysis will be discussed in detail, highlighting its significance in cost management. You will understand why overhead variance analysis is used and learn how to calculate and analyze overhead variances. Through demonstration presentations, example problems, and step-by-step instructional videos, you will navigate the intricacies of overhead variance analysis.

As a capstone, we will provide comprehensive problems on overhead variance and variance analysis. With preformatted Excel worksheets and accompanying instructional videos, you will have the opportunity to apply your knowledge and skills in solving complex variance analysis scenarios. The Excel worksheets will guide you through the step-by-step problem-solving process, enabling a hands-on experience to reinforce your understanding.

Join us on this transformative journey of mastering managerial and cost accounting tools. Enroll now and unlock the power of variance analysis and budgeting for effective decision-making and financial management.

Who this course is for:

Accounting Professionals: Accountants seeking to enhance their expertise in managerial accounting tools and cost analysis, and those looking to specialize in managerial accounting roles.
Finance Professionals: Financial analysts, financial managers, and professionals in finance-related roles who want to expand their knowledge of managerial accounting and develop proficiency in variance analysis and cost management.
Business Owners and Entrepreneurs: Small business owners and entrepreneurs who want to gain insights into cost analysis and budgeting techniques to optimize business performance and financial decision-making.
Aspiring Managers: Individuals aspiring to managerial positions who wish to develop a comprehensive understanding of managerial accounting tools and techniques to support strategic planning and decision-making.
Business and Accounting Students: Students pursuing degrees in business, finance, accounting, or related fields who want to complement their academic knowledge with practical skills in managerial accounting and variance analysis.
Anyone Interested in Financial Analysis: Individuals with a keen interest in understanding financial performance, cost management, and budgeting for effective decision-making.

What you'll learn

Explore related topics

Course content

Introduction7 lectures • 26min

Managerial Accounting Review19 lectures • 1hr 13min

Flexible Budget13 lectures • 1hr 26min

Standard Costs & Cost Variance Analysis Overview7 lectures • 26min

Sales Variance Analysis7 lectures • 20min

Direct Materials Variance Analysis7 lectures • 30min

Direct Labor Variance Analysis7 lectures • 22min

Overhead Variance Analysis11 lectures • 1hr 2min

Overhead Variance Comprehensive Problem4 lectures • 15min

Comprehensive Problem9 lectures • 1hr 10min

Requirements

Description

Who this course is for: