Budgeting (ACCA)

optional courses

(in Polish) Aby zarejestrować się na przedmiot Student musi uprzednio zaliczyć kurs Rachunkowość zarządcza!"

The aim of the course is to familiarize students with the theory and practice of the budgeting process in a company, including its traditional and modern concepts, and to educate students in the sense of the importance of the budgeting process for the management of the company. During the classes, students will learn what are the objectives and functions of budgeting in the company, what are the different methods of creating a budget, learn to prepare it and learn the rules of budget control, including the analysis of deviations from budgeted values. The course is a free choice subject for students of all faculties and years of study, it is also a mandatory subject for students who wish to obtain F5 (Performance Management) ACCA credits. Course completion shall be in writing and shall consist of a single-choice test and assignments. The final assessment is also influenced by the work (also in groups) during the classes.

1.The essence, objectives and functions of the budgeting.

2. Place of budgeting in the management process. Budgeting as an element of planning. The stages of budgeting.

3. Types of budget. Methods of budgeting:

conventional and rolling budgeting, zero-based and incremental budgeting, top-down and participatory budgeting, activity cost budgeting.

4. The use of quantitative methods in budgeting

5. Elements of the master budget: operational and financial budget and its various parts Creating a budget - case study.

6 Budgetary control in the company. Actual budget, planned and recalculated.

7. Standard costing.

8. Calculation of the different types of deviation from budgeted figures. Causal analysis of deviations.

9. Behavioral aspects of budgeting.

10. Criticism of traditional budgeting. Management without budgets - functional budgeting

1. materials prepared by the instructor.

2. materials available on the ACCA http://www.accaglobal.com/zm/en/student/exam-support-resources/fundamentals-exams-study-resources/f5/technical-articles.html

3. G. Świderska (red.), Controlling kosztów i rachunkowość zarządcza, Difin, Warszawa 2014.

4. Sobańska I. (red.), Rachunek kosztów. Podejście operacyjne i strategiczne, C.H.BECK, Warszawa 2009.

5. Sobańska I. (red.), Rachunek kosztów i rachunkowość zarządcza; Najnowsze tendencje, procedury i ich zastosowanie w przedsiębiorstwach, C.H.BECK, Warszawa 2006.

6. Jarugowa A., Szychta A., Kabalski P., Rachunkowość zarządcza, koncepcje i zastosowania, Wolters Kluwer, Łódź 2010.

7. G. Świderska (red.), Rachunkowość zarządcza i rachunek kosztów, Difin, Warszawa 2003, t. I i II.

(A) knowledge

Student

- has knowledge of the essence of the company's budgeting process,

- knows traditional and modern methods of budgeting in a company,

- knows the advantages and disadvantages of different budgeting methods, including their behavioural aspects,

- is familiar with quantitative methods used in budgeting, such as the minimum and maximum value method, the learning curve method,

- is familiar with the limitations of quantitative methods in budgeting,

- knows how to set cost standards,

- has knowledge of the use of standard costs in the budgeting process,

- knows the differences between the cost standard and the cost budget,

- is familiar with the concept of controllable and non-controlled costs,

- is familiar with the risks involved in the budget review process,

- has knowledge of the objectives and methods of budgetary control,

- is familiar with the importance of accountability for the budgetary control process,

- knows the limits of the traditional budgeting model,

- knows the challenges of changing the budgeting system,

- is familiar with the concept of budgetless management and its limits.

(B) skills

Student

- is able to determine the place of budgeting in the process of company management, - is able to indicate the information necessary to prepare the budget and their sources,

- can describe the stages of budgeting,

- can explain the role of employees in the budgeting process and the impact of budgeting on the motivation of employees and managers,

- is able to choose the right budget system for a specific company and justify the choice made,

- is able to draw up the various budgets that make up the lead budget,

- is able to draw up a recalculated budget and calculate variations resulting from a change in the size of activity,

- can apply different quantitative methods in the process of budgeting, including the ability to distinguish fixed and variable costs using the extreme values method, can estimate the learning rate and learning outcomes, and can indicate the advantages and disadvantages of using spreadsheets in budgeting,

- is able to explain the rules and objectives of standard cost accounting,

- is able to calculate and interpret various deviations from budgeted values, e. g. deviations in costs of direct materials, wages and departmental salaries and sales deviations in enterprises using the calculation of full and variable costs, and indicate the reasons for such deviations,

- be able to calculate and indicate the causes of deviations in the consumption of direct materials and in the volume of sales, and indicate their possible causes,

- can draw up a revised budget,

- is able to calculate and identify the causes of operational and revision-related budget deviations in sales, direct materials and labour costs,

- can identify and explain links between different types of deviations and propose actions to eliminate deviations,

- is able to match the planned budget with the actual budget,

- can identify risks associated with traditional budgeting.

C) social competences

Student

- understands the importance of budgeting in the company management process and for the motivation of employees and their actions,

- is ready to expand his/her knowledge on his/her own,

- can work together and work in a group,

- is able to express and justify his or her views,

- can participate in discussions.

Mandatory presence. A credit based on a semester-end colloquium (80% of the final grade), activity and work during the class (20% of the final grade). In order to pass the course, you must obtain at least 50% of the points from the colloquium, and also - at least 50% of all the possible points.

In order to participate in classes, students should have basic knowledge of the differences between the generic and functional layout of costs and the basic elements of financial statements. Students who are not familiar with these issues will be de-registered from the course by the Dean of Studies at the beginning of the semester without any consequences and will be able to register for other classes (this does not exhaust the statutory right of the student to resign from the course under the right to resign once during the course of studies of a given degree; de-registration takes place in this case in a different mode).