Fundamentals of Budgeting and Variance Analysis

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.