Modern Budgeting for Profit Planning and Control
Field of Study:
The course is intended for business professionals engaged in budgeting, financial planning, forecasting, profit planning,
and control. A budget is the formal expression of plans, goals, and objectives of management that covers all aspects of
operations for a designated time period. The budget is a tool providing targets and direction. Budgets provide control
over the immediate environment, help to master the financial aspects of the job and department, and solve problems before
they occur. Budgets focus on the importance of evaluating alternative actions before decisions are actually implemented.
This course explains what budgets are, how they work, how to prepare and present them, and how to analyze budget figures
and results. The new development and use of budgets such as rolling budgets at various managerial levels within a business
are illustrated, along with active financial planning software and e-budgeting that combine budgeting, forecasting analytics,
business intelligence, and collaboration.
Program content and Learning objectives:
After completing this course you will be able to:
- List characteristics of capital investment.
- Distinguish between different business entities.
- Understand and define different types of costs.
- Recognize costs and their allocation.
- Identify which factors are used in evaluating a firmís stock.
- Recognize a comprehensive set of financial ratios and how to interpret them.
- Identify the basic components of the Du Pont formula and how it can be used for profit improvement.
- Identify major steps in preparing the master budget.
- Recognize how the cash budget can be used to more effectively conduct financial management.
- Recognize the concept and use of the time value of money.
- Recognize the definitions for annuities and minimum rates of return.
- Define the risk-return trade-off used in understanding diversification.
- Using the Capital Asset Pricing Model (CAPM), calculate portfolio return and portfolio risk.
- Using the Arbitrage Pricing Model (APM), compute rate of return.
- Distinguish between preferred stock and common stock.
- Compute costs of financing for long-term debt.
- Identify the overall cost of capital.
- Identify capital budgeting methods used to grow a company.
- Recognize the primary objective of capital structure decisions and the influences on capital structure decisions.
- Understand the components of working capital and how to compute work capital.
- Recognize ways to better manage inventory, including the economic order quantity and the ABC inventory control method.
- Recognize the different short-term financing instruments and when one is most appropriate.
Type of Delivery Method:
Recommended CPE Credits:
Final examination expiration date:
The program participant will have one year from the date of purchase to complete the course and final examination.
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Complaint resolution policy:
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Web CPE is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org