Fundamentals of Budgeting and Variance Analysis
Learn about the importance of budgeting, types of budgeting as well as variance analysis from this free online course.
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This free online course will begin by introducing you to the concept of budgeting and budgetary control in cost accounting. You will learn about the importance of having a budgetary control system in an organisation, the objectives of budgeting, the various types of budgeting available in cost accounting, the different components of a functional budget as well as how resources are co-ordinated and allocated to two different functions in cost accounting.
This course will also introduce you to how to compute budget contribution margin using illustrations. This course will teach you about the importance of cash budgeting in cost accounting, the concept of standard costing, along with its steps. You will learn about types of standard, the advantages along with the disadvantages of standard costing in cost accounting, as well as the meaning of material cost variance.
Finally, this course will introduce you to the formula for computing material cost variance as well as the formula for calculating labour variance. This course will give you insights to the reasons why an organization faces overhead variance along with the reasons for labour cost variance in cost accounting. Start this course and improve your understanding of budgeting and variance analysis in cost accounting.Start Course Now
Introduction to Budgeting
Introduction to Budgeting - Learning Outcomes
Budgeting and Budgetary Control
Introduction to Budgeting - Lesson Summary
Types of Costing and Variance Analysis
Types of Costing and Variance Analysis - Learning Outcomes
Standard Costing and Variance Analysis
Material Cost Variance
Types of Costing and Variance Analysis - Lesson Summary
On successful completion of this course you will be able to:
- Discuss the concept of budgeting and the types of budgeting in cost accounting.
- Analyze the components and importance of a budgetary control system.
- Discuss the concept of zero-based budgeting and its application in cost accounting.
- Explain the components of functional budgeting and how it is applied in an organization.
- Analyze the importance of cash budgeting in cost accounting using illustrations.
- Explain the concept of standard costing and the steps in it.
- Discuss the concept of variance as well as the types of variance.
- Outline the advantages and disadvantages of standard costing.
- Explain variance analysis and the formula for computing material variance.
- Discuss the term variance of efficiency in cost accounting.
- Explain the different ways of analysing variance in cost accounting.
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