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Master Budgets – Managerial Accounting/Cost Accounting

Name: Master Budgets – Managerial Accounting/Cost Accounting
Rating: 4.3 (455 reviews)

Unlocking Profitability: A Comprehensive Guide to Constructing and Analyzing Master Budgets for Strategic Planning

Created byRobert (Bob) Steele

Last updated 4/2024

English

What you'll learn

Define the key concepts and principles of budget construction, including the components of a master budget and their interrelationships.
Evaluate the advantages and disadvantages of different budget timing methods to determine the most appropriate approach for a given scenario.
Analyze the characteristics and functions of a budget committee, understanding its role in facilitating effective budgeting processes.
Create a sales budget, incorporating forecasting techniques and industry trends to develop accurate sales projections.
Develop a production budget, considering factors such as demand forecasts, inventory levels, and capacity constraints to optimize production planning.
Formulate a materials budget, estimating material requirements, analyzing supplier costs, and implementing strategies to optimize inventory management.
Construct a direct labor budget, considering labor rates, workforce capacity, and production requirements to accurately estimate labor costs.
Create a factory overhead budget, identifying cost drivers, allocating overhead costs, and analyzing variances to control expenses effectively.
Design a general and administrative budget, allocating resources to administrative functions, overhead costs, and support departments aligned with organizationa
Develop a cash budget, forecasting cash inflows and outflows, managing liquidity, and optimizing cash resources for efficient financial management.
Construct a budgeted cost of goods manufactured statement, analyzing the costs incurred in the production process to determine the budgeted cost of goods manufa
Prepare a budgeted cost of goods sold statement, calculating the expected cost of goods sold based on budgeted production and inventory data.
Compose a budgeted income statement, integrating revenue projections, cost data, and expense estimates to generate a comprehensive budgeted income statement.
Formulate a budgeted balance sheet, considering the budgeted assets, liabilities, and equity based on the financial projections and budgeted activities.
Integrate all components of the master budget into a cohesive analysis, applying Excel skills to consolidate and interpret the budgeted financial information.
Evaluate the effectiveness of the master budget in supporting strategic financial planning and decision-making processes.
Apply critical thinking and problem-solving skills to address challenges and make informed decisions in the context of budget construction and analysis.

Course content

17 sections • 158 lectures • 23h 50m total length

Introduction5:57
Explore the master budget framework in managerial accounting, from the budgeting process and committee roles to composing the budgeted income statement, balance sheet, cash budget, and related cost budgets.
PDF - 105 Why Budget0:08
Access a downloadable PDA file that supplements the instructional video, reinforcing the why budget concept within master budgets.
105 Why Budget10:22
Explore how budgeting provides a future-oriented map and aligns departments with the big-picture goals. Communicate the plan, involve employees, and turn long-term goals into actionable short-term budgets.
PDF - 110 Budget Problems0:08
Access a downloadable PDA file that serves as a supplement to the instructional video for PDF - 110 budget problems.
110 Budget Problems10:23
Identify budgeting pitfalls such as understate sales and overstate expenses to hit targets, and align culture, realistic targets, and ethics with long-term company goals.
Multiple Choice 13:50
Develop skills in budgeting through multiple choice questions and process of elimination, identifying terms like projection, what-if report, and budgeting, including variance analysis and formal planning.
Accounting Comic Break0:14

2 Managerial Accounting Overview1:30
Explore a managerial accounting overview and shift from historical financial accounting to future projections, building a master budget with budgeted financial statements, balance sheet, and income statement for decision making.
PDF - 10 Managerial Accounting Introduction0:08
Download a PDA file to use as a supplement to the instructional video for the managerial accounting introduction.
10 Managerial Accounting Introduction13:03
Develop managerial accounting by focusing on internal users and decision making, contrasting it with financial accounting's external, GAAP-regulated reports. Create customizable, future-oriented internal reports to support unit and department decisions.
PDF - 20 Cost Classifications0:08
Access a downloadable pda file that you can use as a supplement to the instructional video on cost classifications in master budgets.
20 Cost Classifications9:31
Classify costs by behavior into fixed and variable costs, then by function into direct and indirect costs, including overhead, to support future projections and cost allocation.
PDF - 30 Product Costs & Period Costs.0:08
Access a downloadable PDA file that serves as a supplement to the instructional video, reinforcing concepts of product costs and period costs in managerial accounting.
30 Product Costs & Period Costs.ENCODING16:25
Learn how product costs and period costs drive inventory capitalization in manufacturing. Explore direct materials, direct labor, overhead allocations, and the distinctions of variable, fixed, direct, and indirect costs.
PDF - 40 Prime Costs & Conversion Costs0:08
Download the PDA file to supplement the instructional video, and review prime costs and conversion costs in this presentation.
40 Prime Costs & Conversion Costs5:35
Understand prime costs and conversion costs in manufacturing, linking direct materials, direct labor, and overhead to inventory and the production process.
PDF - 50 Manufacturer's Balance Sheet0:08
Download a PDA file that supplements the instructional video, featuring a pdf balance sheet for a manufacturer to support master budgets and managerial accounting practice.
50 Manufacturer's Balance Sheet3:15
Examine how a manufacturer's balance sheet differs from a service company, with inventory as a current asset and raw materials, work in process, finished goods, and direct labor and overhead.
PDF - 60 Manufacturer's Income Statement0:08
Download a PDA file to supplement the instructional video for the 60 manufacturer's income statement module.
60 Manufacturer's Income Statement8:49
Learn how manufacturing inventory affects the income statement, comparing cost of goods sold across manufacturing, merchandising, and service models, using the cost of goods manufactured formula.
PDF - 70 Manufacturing Activities Flow0:08
Access a downloadable pda file to supplement the instructional video accompanying the pdf '70 manufacturing activities flow' within master budgets and managerial accounting.
70 Manufacturing Activities Flow7:51
Examine the manufacturing activities flow, tracking materials, direct labor, and overhead through work in process to cost of goods manufactured and finally to cost of goods sold.
PDF - 80 Just In Time (JIT) Manufacturing0:08
Download a PDA file that supplements the instructional video on just-in-time manufacturing and pdf resources for master budgets in managerial accounting.
80 Just In Time (JIT) Manufacturing2:58
examine the just in time inventory system, where production follows a customer order. assess benefits and risks, including customization, reduced warehouse space, and tight supplier coordination for timely shipping.
PDF - 90 Job Cost Vs Process Cost0:08
Explore the contrast between job cost and process cost in managerial accounting, using a downloadable PDA file that supplements the instructional video.
90 Job Cost Vs Process Cost9:13
Compare job cost and process cost systems, showing how custom, heterogeneous, low-volume production favors job costing, while homogeneous, high-volume production favors process costing.
Multiple Choice 25:35
Practice budgeting through multiple choice questions and elimination strategies. Identify essential elements, such as attainable goals, communication with employees affected, evaluations of budgets and performance, and awareness of limitations.
Accounting Comic Break0:15
Master budgets are explored within managerial and cost accounting, highlighting how budgeting practices guide decision making, with an accounting comic break to illustrate concepts in an engaging way.

3 Budget Timing and Budget Committee0:38
Learn how to schedule master budgets through precise budget timing. Understand the governance and role of a budget committee in managerial and cost accounting.
PDF - 115 Budget Timing0:08
Download a PDA file to supplement the instructional video on budget timing in the master budgets course.
115 Budget Timing2:58
Learn how to time and structure budgets from annual to quarterly and monthly levels, compare actual results to budgets, and use rolling budgets to regularly update forecasts one year out.
PDF - 120 Budget Committee0:08
Access a downloadable PDA file to supplement the instructional video for the 120 budget committee module.
120 Budget Committee5:49
Explore how a budget committee balances top-down decisions with bottom-up input from supervisors and regional managers to craft a holistic, fair budgeting process.
Accounting Comic Break0:16
Experience an accounting comic break that reinforces budgeting and managerial accounting concepts. This lighthearted segment connects humor with core cost accounting insights for practical learning.

4 Sales Budget, Production Budget, & Materials Budget1:23
Explore how sales budgets inform production budgets and materials budgets within master budgets for managerial accounting.
PDF - 210 Sales Budget, Production Budget, & Materials Budget0:08
A downloadable pdf file (PDA) accompanies the instructional video, providing a supplement to explore the 210 sales budget, production budget, and materials budget.
210 Sales Budget, Production Budget, & Materials Budget14:07
Explore the master budget, including the sales, production, and materials budgets, and learn how unit sales drive inventory buffers, materials purchases, and cash budgeting.
Excel Worksheet Download0:05
The next presentation includes a downloadable Excel worksheet to reinforce master budgets concepts in managerial accounting.
Worksheet - 210 Sales Budget, Production Budget, & Materials Budget15:14
Develop a manufacturing master budget by building the sales, production, and materials budgets for July–September, using unit sales, $24 price, and 80% next-month ending inventory policy.
Excel Worksheet Download0:05
Access a downloadable Excel worksheet in the next presentation to practice master budgets in managerial accounting.
Worksheet 215 Accounting instructions-Master budget, raw materials budged part 29:53
Continue building master budget by deriving the raw materials budget from the production budget, applying ending inventory cushions, material per unit, and cost per unit to determine direct material purchases.
Accounting Comic Break0:15
Engages learners with an accounting comic break to reinforce master budgets concepts within managerial and cost accounting.

5 Direct Labor, Factory Overhead, Selling, & General and Administrative Budgets1:20
Examine direct labor, factory overhead, selling, and general and administrative budgets within the master budget process. Use PowerPoint and Excel worksheets (completed, preformatted, and blank tabs) to practice budgets.
PDF - 220 Direct Labor, Factory Overhead, Selling, General and Administrative0:08
Explore direct labor, factory overhead, and selling, general and administrative costs within master budgets, aided by a downloadable PDA file as a supplement to the instructional video.
220 Direct Labor, Factory Overhead, Selling, General and Administrative10:16
Learn to build the direct labor budget from the production and sales budgets, compute hours per unit and apply the hourly rate, then estimate variable and fixed factory overhead.
Excel Worksheet Download0:05
The next presentation will include an Excel worksheet. We can download the worksheet for use in the course.
Worksheet - 220 Direct Labor & Factory Overhead10:16
Calculate the direct labor budget from the production budget using hours per unit and the hourly rate, then determine the variable and fixed factory overhead for July through September.
Excel Worksheet Download0:05
Download an Excel worksheet from the next presentation. Use the downloadable file to practice budgeting concepts in managerial accounting.
Worksheet - 225 Selling & Administrative Budget14:59
Build the master budget by calculating the selling expense budget, including 9% sales commissions and admin costs, and plan cash budget with 30% cash sales, 70% credit, and next-month collections.
Discussion Question 17:07
Explore how budgeting creates future orientation, translates vision into actionable yearly, quarterly, and monthly plans, coordinates activities, motivates employees, and serves as a roadmap for evaluation and implementation.
Accounting Comic Break0:16
Pause for an accounting comic break during master budgets and managerial accounting to reset focus. Embrace humor to reinforce attention and engagement with the course concepts.

6 Cash Budget1:45
Explore the cash budget within the master budget sequence, measuring cash inflows and outflows to forecast cash flows. Contrast accrual budgeting with cash budgeting for liquidity and budgeted statements.
PDF - 230 Cash Budget0:08
Explore the pdf-230 cash budget with a downloadable PDA file that supplements the instructional video.
230 Cash Budget16:19
Explore how to compile the cash budget within the master budget, tracing cash receipts and disbursements, maintaining a minimum balance, and using a line of credit.
Excel Worksheet Download0:05
Download the Excel worksheet included in the upcoming presentation to explore hands-on budgeting and cost accounting exercises.
Discussion Question 23:32
Explain rolling budgets as a continuous 12-month outlook that updates with time and compare them to traditional budgets, highlighting planning and communication benefits.
Worksheet - 230 Cash Budget18:35
Develop a cash budget by linking beginning cash, cash receipts, and disbursements, accounting for accounts payable lag, variable overhead, salaries, dividends, and loan adjustments to maintain a 40,000 minimum balance.
Accounting Comic Break0:15
Explore budgeting and cost accounting concepts through an accounting comic break. Join this course segment to connect master budgets with managerial accounting themes.

7 Budgeted Cost of Goods Manufactured & Cost of Goods Sold1:12
Learn to develop the budgeted cost of goods manufactured and budgeted cost of goods sold within the master budget, using step-by-step instructional videos and Excel worksheets with multiple tabs.
PDF - 240 Budgeted Cost of Goods Manufactured & Cost of Goods Sold0:08
Download a PDA file as a supplement to the instructional video on budgeted cost of goods manufactured and cost of goods sold.
240 Budgeted Cost of Goods Manufactured & Cost of Goods Sold7:27
Walks through the master budget to compute budgeted cost of goods manufactured and cost of goods sold from raw materials, direct labor, and overhead.
Excel Worksheet Download0:05
In the master budgets course, the upcoming presentation will include an Excel worksheet that we can download.
Worksheet - 240 Budgeted Cost of Goods Manufactured & Cost of Goods Sold9:15
Explore the master budget, calculating the budgeted cost of goods manufactured from raw materials, labor, and overhead, then determine cost of goods sold using beginning and ending inventories.
Accounting Comic Break0:15
Enjoy an accounting comic break that highlights budgeting concepts within master budgets and managerial accounting. Reinforce learning by connecting the humor to cost accounting ideas in context.
Discussion Question 32:43
This discussion explains why the budgeting process starts with the sales budget and how projected sales drive inventory, production, and the master budget.

8 Budgeted Income Statement1:15
Master the budgeted income statement within the master budget, covering budgeted financial statements like the budgeted balance sheet, with PowerPoint instruction and an Excel worksheet featuring ready-to-use and blank templates.
PDF - 250 Budgeted Income Statement0:08
Download a PDA file that supplements the instructional video for the budgeted income statement, part of the master budgets in managerial accounting.
250 Budgeted Income Statement5:39
Construct the budgeted income statement from prior budgets by detailing sales, cost of goods sold, gross profit, operating expenses, taxes, and net income.
Excel Worksheet Download0:05
Download the Excel worksheet featured in the next presentation to reinforce budgeting concepts in managerial accounting.
Worksheet - 250 Budgeted Income Statement5:56
Build the budgeted income statement from the master budget, linking sales and cost of goods sold to compute gross profit, then itemize operating expenses and taxes to net income.
Accounting Comic Break0:17
Explore budgeting and cost accounting concepts within master budgets, using an accounting comic break to illustrate managerial accounting ideas in a clear, engaging way.
Discussion Question 42:59
Describe the sales budget as the starting point of the master budget, detailing budgeted sales in units and unit price, and its role in forecasting production and raw materials needs.

9 Budgeted Balance Sheet1:18
Explore the budgeted balance sheet within the master budget, following the sales budget and budgeted income statement, using Excel templates for practice.
PDF - 260 Budgeted Balance Sheet0:08
Access a downloadable PDA file that supplements the instructional video on the budgeted balance sheet within master budgets.
260 Budgeted Balance Sheet13:20
Explore how the master budget culminates in a budgeted balance sheet by linking the sales, production, and cash budgets to forecast assets, liabilities, and equity at period end.
Excel Worksheet Download0:05
Access a downloadable Excel worksheet included in the next presentation and download the worksheet to support your work in master budgets and managerial accounting.
Worksheet - 260 Budgeted Balance Sheet10:00
Finish the master budget by completing the budgeted balance sheet, tying cash flow, accounts receivable, inventories, equipment, depreciation, and current liabilities into a concise financial snapshot.
Short Calculation Questions14:11
Short calculation questions in budgeting cover cash budgets, June cash flow, minimum balances, loans, selling expenses, and budgeted purchases from inventory and sales forecasts.
Accounting Comic Break0:15
Take an accounting comic break to explore master budgets within managerial accounting and cost accounting.
Discussion Question 54:22
Explore the cash budget within the master budgeting process, showing how cash inflows and outflows are forecast using sales, production, raw materials, and direct labor budgets.

10 Verify The Budget1:07
Verify the budget with an Excel worksheet by recording predicted journal entries from the beginning balance sheet, projecting into the next year, and checking debits, credits, and net income.
Excel Worksheet Download0:05
Download the Excel worksheet included in the next presentation to practice master budgets and cost analysis in managerial accounting.
Worksheet - 270 Verify The Budget27:10
Troubleshoot master budgets by journalizing activities into a trial balance and verify that the balance sheet and income statement stay in balance through accurate debits and credits.
Accounting Comic Break0:14
Discussion Question 63:02
Explain how production budget, part of the master budget driven by sales budget, uses inventory levels to determine units to produce and costs such as raw materials, labor, and overhead.

Requirements

Basic Accounting Knowledge: Familiarity with fundamental accounting principles, including an understanding of financial statements and terminology.
Managerial Accounting Foundations: A basic understanding of managerial accounting concepts, such as cost classification, cost behavior, and cost-volume-profit analysis.
Excel Proficiency: Proficiency in using Microsoft Excel, including the ability to navigate worksheets, enter data, perform basic calculations, and create simple formulas.
Numerical and Analytical Skills: Strong numerical aptitude and analytical thinking skills to analyze financial data, interpret budgeting concepts, and solve problems related to budget construction and analysis.
Willingness to Learn: An eagerness to expand knowledge in budget construction and analysis, and a commitment to actively engage with course materials and exercises.

Description

Embark on a comprehensive journey of budget construction with our "Mastering Budget Construction" course. This course offers a deep dive into each component of the master budget to provide a detailed understanding and practical application.

We start by building a strong foundation in managerial accounting concepts, comparing and contrasting its role with financial accounting. You will gain insights into the essential managerial accounting tools necessary for effective budget construction.

Throughout the course, we explore each component of the master budget in detail, incorporating practical insights as we go.

In the sales budget module, we delve into the process of constructing a sales budget, emphasizing the importance of accurate sales projections and incorporating forecasting techniques. We also explore industry trends and external factors that impact sales forecasts.

Moving on to the production budget, we analyze the factors influencing production levels, such as demand forecasts, inventory management, and capacity constraints. You will learn how to develop a production budget that optimizes resources and meets customer demands.

Our materials budget module focuses on estimating material requirements, analyzing supplier costs, and optimizing inventory levels. We explore techniques for effectively managing material costs and ensuring a smooth supply chain process.

Next, we dive into the direct labor budget, where we examine labor rates, workforce capacity, and production requirements. You will learn how to estimate labor costs accurately and allocate labor resources efficiently.

The factory overhead budget module explores the intricacies of managing factory overhead costs. We discuss cost drivers, allocation methods, and variance analysis, equipping you with the skills to effectively control and manage factory overhead expenses.

In the general and administrative budget section, we delve into the budgeting process for administrative functions, overhead costs, and support departments. You will gain insights into allocating resources, setting departmental budgets, and aligning them with organizational goals.

Our cash budget module provides a comprehensive understanding of cash flow management. You will learn how to forecast cash inflows and outflows, optimize cash resources, and manage liquidity effectively to ensure smooth financial operations.

Throughout the course, you will have access to preformatted Excel worksheets and practical exercises that allow you to apply the concepts learned. You will also have the opportunity to engage in discussions, practice test questions, and work on a comprehensive problem-solving exercise in Excel to consolidate your knowledge.

By the end of this course, you will possess a comprehensive understanding of each component of the master budget, along with the practical skills to construct and analyze budgets effectively. Whether you are a business owner, aspiring accountant, finance professional, or student, this course will empower you to excel in budget planning and analysis. Join us now and embark on a journey to master budget construction.

Who this course is for:

Accounting Professionals: Accountants seeking to enhance their skills in budgeting and financial planning, and those aiming to specialize in managerial accounting roles.
Finance Professionals: Financial analysts, financial managers, and professionals in finance-related roles who want to develop a solid understanding of budgeting concepts and techniques.
Business Owners and Entrepreneurs: Small business owners and entrepreneurs who want to gain expertise in budgeting and financial planning to optimize their business operations and decision-making.
Aspiring Managers: Individuals aspiring to managerial positions who wish to develop proficiency in budgeting and financial analysis to drive strategic planning and operational 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 budget construction and analysis.
Anyone Seeking Financial Literacy: Individuals interested in enhancing their financial literacy and understanding the role of budgets in managing personal finances or supporting business decision-making.

Master Budgets – Managerial Accounting/Cost Accounting

What you'll learn

Explore related topics

Course content

Introduction7 lectures • 31min

Managerial Accounting Overview21 lectures • 1hr 25min

Budget Timing and Budget Committee6 lectures • 10min

Sales Budget, Production Budget, & Materials Budget8 lectures • 41min

Direct Labor, Factory Overhead, Selling, & General and Administrative Budgets9 lectures • 45min

Cash Budget7 lectures • 41min

Budgeted Cost of Goods Manufactured & Cost of Goods Sold7 lectures • 21min

Budgeted Income Statement7 lectures • 16min

Budgeted Balance Sheet8 lectures • 44min

Verify The Budget5 lectures • 32min

Requirements

Description

Who this course is for: