Overview/Description Target Audience Expected Duration Lesson Objectives Course Number Overview/Description
One of the most important uses of budgets is as a control tool. Once the budgets for various departments are planned and approved, they drive each department's activities to achieve its budgetary goals. Departmental managers along with organizational leadership review department's performance over a designated period and identify variances from budget goals. In particular, they identify adverse variances and, where possible, they take corrective measures to bring department's performance back on the track. If the causes of variance are beyond organization's control, the budgets have to be revised. This course explores budget variance analysis as a tool for controlling and managing business activities in an organization. It presents some examples of effective management during the budgetary planning and control process. It also discusses various types of budget variances and how to identify some of the common ones, using appropriate examples. And it explores variances, their underlying causes, and which ones are worth investigating using a budgeted income statement.
Finance and nonfinance professionals, functional managers, executives, and all individuals involved directly or indirectly with budgetary planning and an organization's control process