Learning Objectives

The Principles of Budgeting unit develops an understanding of how and why budgets are prepared. You need to display the necessary knowledge to prepare revenue forecasts and a range of budgets for different circumstances, and be able to tailor them to meet organisational requirements. You will understand the component parts of budgetary procedure to aid organisational planning and control.

The Drafting Budgets unit develops forecasting and budgeting skills. You need to demonstrate ability to prepare budgets, analyse variances and make recommendations for improving organisational performance. You must also be able to guide managers in planning and control.

Learning Outcomes

• Demonstrate an understanding of the impact of internal and external business factors on budgets.
• Understand why budgets are used.
• Understand the skills needed in budget preparation.
• Prepare forecasts and budgets.
• Understand the impact that changes in the economic environment will have on the budget.
• Use budgetary control to ensure organisational targets are met.