Pass Marks: 35
Lecture hours: 150
Course Objectives:
The objectives of this course are to give students a deeper understanding in the area of budgeting and controlling
in a competitive business environment. It also aims to acquaint students with advanced knowledge in the field of
accounting in order to formulate business strategies.
Course Description
This course contains conceptual foundation, sales planning and control, production planning and control, planning
of factor of production, planning and controlling cash, completion of profit plan, zero-based budgeting, planning
and controlling capital expenditures, application of cost volume profit analysis in profit planning, performance
reports for management control.
Course Details:
Unit 1: Conceptual Foundation LH 14
Introduction and purpose of profit planning and control; Overview of PPC; Fundamental concept of
Comprehensive profit planning and control; Management planning and control using PPC; Time
dimensions in PPC; Organizational adaptation to PPC; PPC processes; Line and staff responsibilities
related to PPC; Behavioral implications of a PPC program; Application of PPC in manufacturing and
non-manufacturing organizations.
Unit 2: Sales Planning and control LH 10
Concept and objectives of sales planning; Sales planning compared with forecasting; Strategic and
Tactical sales plans; Component of comprehensive sales planning; Developing a comprehensive sales
plan; Consideration of alternatives in developing a realistic sales plan; Steps and methods of sales
planning.
Unit 3: Production Planning and Control LH 10
Concept and objectives of production planning; General considerations in planning production and
inventory levels; Time dimensions of production planning; Developing production planning; Developing
inventory policies; Setting production policies; Just in time (JIT) production; The production budget as a
planning, coordinating and control tool.
Unit 4: Planning of Factor of Production LH 28
Material Consumption, purchases and material cost budgets; Material inventory and JIT purchase;
Merchandize purchase budget of a non manufacturing organization; Open to buy concept and its validity;
Planning of direct labour hours, direct labour costs, direct labour budget and control; Overhead cost
planning and control; Controllable and non-controllable overhead cost; Cost control and reduction;
Manufacturing, administrative and selling & distribution overhead cost planning; Apportionment and
reapportionment of planned overhead costs to operating divisions.
Unit 5: Planning and Controlling Cash LH 14
Concept and objectives of planning and control of cash; Time horizons in cash planning and control;
Estimation of cash receipts and payments; Borrowing and other financial need; Use of financial
accounting approach in computing cash collection and cash disbursements.
Unit 6: Completion of Profit Plan LH 18
Concept and objectives of completion of profit plan; Completion of the annual profit plan; Alternatives
available in developing profit plan; Implementation of the profit plan; Application of profit plan in
controlling operation.
Unit 7: Zero-Based Budgeting LH 6
Concept, objectives, advantages, limitations and procedures of zero-based budgeting.
Unit 8: Planning and Controlling Capital Expenditures LH 15
Concept, objectives and characteristics of capital expenditure budget; Project orientation in the capital
expenditure budget; Time dimensions in the capital expenditure budget; Benefits of capital expenditures
budget; Responsibilities for developing the capital expenditures budget; Methods of measuring the
economic value of a capital expenditures
Unit 9: Application of Cost Volume Profit Analysis in Profit Planning LH 14
Concept and objectives of cost volume profit analysis; Basic assumption underlying cost-volume-profit
analysis; The principle of cost variability as applied to cost-volume-profit analysis; Identification of fixed
and variable cost components; Break even and contribution analysis; Application of break even analysis;
Cost validity; Sales mix and sales price planning.
Unit 10: Performance Reports for Management Control LH 11
Classification of reports; Performance report as a communication tool; Essential features of a
performance report; The basic format of performance report; Adapt performance reports to requirement of
users; Design and preparation of performance report; Time gap between the decision and report;
Technical aspect of control reports.
Project Work LH 10
After the completion of fourth year concentration classes the students shall have to prepare and submit a project
work in the area they have specialized. The subject teachers have to discuss with students on possible topics of the
project work, availability and sources of literature, availability of data, data collection methods, appropriate tools
of data analysis, etc relevant to the subject within 10 lecture hours.
Basic Books:
Welsh, G. A., Ronald, W. H. & Gordan, P. N. Budgeting: Profit planning and control, New Delhi: Prentie Hall
of India.
Jones, R. L. & Trentin, G. H. Budgeting: Key to planning and control, Mumbai
Jakhotiya, G. P., Budgeting and Budgetary Control, New Delhi: Tata McGraw Hill Publishing Company Limited
Reference Books:
Shah, B. & Goet, J., Profit Planning and Control. Dreamland Publication, Kathmandu
Ojha, K. P. & Gautam, C. M., Profit Planning and Control, Kathmandu: Asmita Books and Distributors Pvt.
Ltd.
Fago, G. & Niraula, H., Profit Planning and Control. Kathmandu: Buddha Academic Enterprises Pvt. Ltd.
No comments:
Post a Comment