Budget Analysis and Budgetary Control Practice Exam

About Budget Analysis and Budgetary Control
Budgetary control is a tool for the management to allocate responsibility and authority in planning for future and to develop a basis of measurement to evaluate the efficiency of operations.

Budgetary control helps in coordinating the economic trends, financial position, policies, plans, and actions of an organization.

Budgetary control also helps the management to ensure and control the plan and activities of the organization. Budgetary control makes it possible by continuous comparison of actual performance with that of the budgets.

Why is Budget Analysis and Budgetary Control important?
There are a number of advantages to budgeting and budgetary control, which are
•    Compels management to think about the future, which is probably the most important feature of a budgetary planning and control system. Forces management to look ahead, to set out detailed plans for achieving the targets for each department, operation and (ideally) each manager, to anticipate and give the organisation purpose and direction.
•    Promotes coordination and communication.
•    Clearly defines areas of responsibility. Requires managers of budget centres to be made responsible for the achievement of budget targets for the operations under their personal control.
•    Provides a basis for performance appraisal (variance analysis). A budget is basically a yardstick against which actual performance is measured and assessed. Control is provided by comparisons of actual results against budget plan. Departures from budget can then be investigated and the reasons for the differences can be divided into controllable and non-controllable factors.
•    Enables remedial action to be taken as variances emerge.
•    Motivates employees by participating in the setting of budgets.
•    Improves the allocation of scarce resources.
•    Economises management time by using the management by exception principle.

Who should take the Budget Analysis and Budgetary Control Exam?
•    Business owners
•    Entrepreneurs
•    Finance Managers
•    Planning/Budget Controllers
•    Cost Controllers
•    Middle Management officers in Planning /Budgeting
•    Financial and Product Control
•    Finance Business Partners
•    Management, Statutory and Regulatory Reporting
•    Auditors and Internal Control
•    Accountants and Consultants
•    Students

Knowledge and Skills required for the Budget Analysis and Budgetary Control

Specific skills are needed to excel in career of budget analysis and budgetary control which includes analytical bent of mind and quick learning skills.

Budget Analysis and Budgetary Control Practice Exam Objectives

Budget Analysis and Budgetary Control exam aims to assess you in concepts and application of costing, budget analysis and budgetary control

Budget Analysis and Budgetary Control Practice Exam Pre-requisite

There are no prerequisites for the Budget Analysis and Budgetary Control exam. Candidates who are well versed  in finance or budgeting can easily clear the exam.

Budget Analysis and Budgetary Control Certification Course Outline

1. Material Cost
1.1 Inventory Control (Material Control)
1.2 Objectives of Inventory Control
1.3 Techniques of Inventory Control
1.4 Store-Keeping
1.5 Functions of Store-Keeping
1.6 Method of Pricing of Material Issues
1.7 Accounting of Material Losses
1.8 Control of Material Losses
1.9 Inventory Management

2. Labour Cost
2.1 Introduction to Labour Cost
2.2 Classification of Labour Cost
2.3 Accounting and Control of Labour Cost
2.4 Time Recording
2.5 Time-Keeping
2.6 Time Keeping
2.7 Overtime
2.8 Idle Time
2.9 Labour Turnover
2.10 Labour Remuneration System
2.11 Basic Methods of Remuneration System
2.12 Incentive schemes



3. Direct Expenses and Overheads
3.1 Direct expenses
3.2 Indirect expenses
3.3 Overheads
3.4 Collection of Overheads
3.5 Classification of Overheads
3.6 Allocation and apportionment of overheads (depart-metallization of overheads)
3.7 Allocation of Overheads
3.8 Apportionment of Overheads
3.9 Absorption of overheads
3.10 Methods of Absorbing Production Overheads
3.11 Over or Under Absorption Of Overheads
3.12 Treatment of Factory Overheads
3.13 Treatment of Administrative Overheads
3.14 Treatment of Selling And Distribution Overheads
3.15 Control of Overheads
3.16 Preparation of Cost Sheet


4. Budget, Budgeting and Budgetary Control
4.1 Budget
4.2 Budgeting
4.3 Budgetary Control
4.4 Forecast and Budget
4.5 Zero Base Budgeting
4.6 Rolling Forecasts
4.7 Project Budgeting
4.8 Capital Expenditure Budgeting and Analysis

5. Costing Systems
5.1 Introduction
5.2 Single/Output/Unit Costing
5.3 Cost Sheet
5.4 Job Costing
5.5 Batch Costing
5.6 Contract Costing
5.7 Process Costing
5.8 Service Costing

6. Marginal Costing
6.1 Features of Marginal Costing
6.2 Advantages of Marginal Costing
6.3 Limitations of Marginal Costing
6.4 Break-Even Analysis/Cost-Volume Profit Analysis
6.5 Uses of Cost-Volume-Profit Analysis
6.6 Contribution
6.7 Marginal Cost Equation
6.8 Profit-Volume Ratio
6.9 Margin of Safety
6.10 Methods For Determining Break Even Points
6.11 Applications of Marginal Costing
6.12 Composite Break Even Point
6.13 Absorption Costing
6.14 System of Profit Reporting

7. Standard Costing
7.1 Introduction
7.2 Definition and Meaning
7.3 Applications of Standard Costing
7.4 Various Types of Standards
7.5 Standard Costing System
7.6 Variance Analysis
7.7 Material Cost Variances
7.8 Material Usage Variance
7.9 Material Mix Variance
7.10 Materials Yield Variance
7.11 Overhead Cost Variances
7.12 Variable Overhead Variance
7.13 Fixed Overhead Variance

Exam Format and Information
Certification name – Budget Analysis and Budgetary Control Certification
Exam duration – 60 minutes
Exam type - Multiple Choice Questions
Eligibility / pre-requisite - None
Exam language - English
Exam format - Online
Passing score - 25
Exam Fees  - INR 1199