SUKKUR IBA UNIVERSITY

FACULTY OF BUSINESS ADMINISTRATION

Budgeting & Forecasting (FIN-402)
Course Outline
1. Course Identification and General Information

Program and Class: BBA-VIII (A,B & C) Semester: Spring 2020

Credit Hours: 03 Instructor: Arsalan Ahmed Soomro
Email: Arsalan.soomro@iba-suk.edu.pk
Office Location: Room 101 (Block – II)
Pre-requisite Course: Counseling Hours: Friday 3:00-5:00

2. Schedule of Assessment Tasks for Students during the Semester

S.No: Assessment Task (e.g. essay, test, group Week Due Proportion of Final
project, examination etc.) Assessment/Marks
1 Quizzes 3rd 10

2 Assignments 10th 5

3 Case Participation. 5

4 Two Mid-Term Academic 40

Calendar
5r Final Exam Academic 40
Calendar

3. Learning Resources

I- Recommended Books:

Budgeting Basics and Beyond-Wiley (2011)

II- Reference Books/ Material
1. ACCA Study text Foundation Management accounting and Performance
Management.
2. Managerial Accounting, By: Garisson, Noreen, McGraw Hill 14thEdition
3. Management and Cost Accounting by Colin Drury -Cengage Learning EMEA (2012)
 III- Electronic Materials, Web Sites etc.
N/A

IV- Other Learning Material(such as computer-based programs/CD, professional

standards/regulations)
N/A

4. Course Description
The course is designed to develop skills necessary for preparation and reporting budgets and
forecasted calculations along with decision making. The course will enhance the students ability
to identify different alternative course of actions for same activity.

5. Course Learning Outcomes (CLOs) along with PLOs

PLO CLOs Course Teaching Assessment Methods

s Strategies
2.1 Students will be able to present Classroom Case presentation
and justify prepared budgets participation/presentation
proficiently
3.2 Students will be able to apply Lectures &
different budgeting and Readings Quiz, Assignments,
forecasting tools, techniques Exams
and models
7.1 Students will be able to address Lectures,
business challenges by using Readings & Quizzes and Exams
concepts of Budgeting and Case Study
Forecasting
6. Lesson Plan &week wise Schedule

Suggested
Discussion Themes Assignments/Quizze
Serial # Reading
s
Session 1
Class introduction of Budgeting
 Planning & control cycle Foundation in
 Formulation of budget. Management
 Budgetary planning & control system Accounting
 Objective of budgeting. [CH 15].
1  Planning and control in performance
hierarchy Performance
 Approaches to development of Management
budgeting [CH 8].
 Responsibility centers

Session 2 .
Types of budgets & Usages of the budgetary
system Performance
2  Incremental budgeting. Management
 Fixed and flexible budgeting. [CH 8].
 Zero based budgeting.
 Activity based budgeting.
Session 2 Continued
Types of budgets & Usages of the budgetary
system
 Rolling budgets.
 Criticism of budgeting. Case on production Handouts will
3  Benefits of budgeting and purchase budget. be provided
 Challenges for implementation of
budgets.
 Budgets and uncertainty.
 Class Practice
Session 3
Components of budget Handouts will
4  Production budget be provided
 Purchase budgets
 Sales Budgets
Materia and Labour usage budget
 Session 3 Continued
Components of budget and cash budget.
5  Class practice on components of Handouts will
budgets be provided
 Cash budget.
Class practice.
Session 4
 Master budgets
6 Session 5 Budget control system
 Flexible budgets basic concepts.
 Flexible VS Fixed budgets
Session 5 Continued
7  Profit margin and Profit Mark up
 Preparation of Flexible Budgets
 Class practice.

8  Short Scenario on flexible budgets

 Practice

1st Mid Term

Session 6
Variance analysis
 Usefulness of Variance Analysis Foundations in
9  Cost Variances Management
 Material Variances Accounting
 Labor Variances [21]
 Variable Overhead Variances
Session 6 Continued Foundations in
 Fixed Overhead Variance Management
10  Flexible budgets and overhead Assignment Accounting
variance [21]
 Causes of variances
Session 6 Continued
 Significance of cost variance
11  Interdependence of variances
 Sales Variance
 Class practice on variance analysis
Session 7 Foundations in
Operating statement and further analysis Management
12,13 &  Operating Statement Accounting
14  Control Actions [22]
 Practice Questions
  Summary
2nd Mid Term
Session 8 Foundations in
Forecasting Management
 Concept and purpose of forecasting Accounting
 Correlation coefficient. [14]
 Coefficient of determination
 Least square method of linear
regression
15,16  High low method.
&17
 Time series analysis.
 Finding the seasonal variation.
 Sales forecasting time series analysis.
 Forecasting problems.
 Sales forecasting the product life
cycle.
 Practice problems
Session 9
Budgeted Financial Statements
 Budgeted income statement
18 & 19  Budgeted Balance sheet.
 Budgeted cash management
 Practice problems
Session 10 Foundations in
Capital budgeting Management
 Capital and revenue expenditure Accounting
 Payback [18] & [19]
21, 22  Time value of money.
& 23  Discounted cash flow
Quiz
 Project appraisal Net present value.
 Relevant and irrelevant cost.
 Scenario Analysis
 Sensitivity Analysis
24 & 25 Session 11 Performance
Cost volume profit analysis management
Break even and multi product break even. Mini-case on CVP [3]
Contribution to sales and Multi product analysis
break even.
Margin of safety and targeted profit.
Limitations and advantages of break even.

Final Exam