Thursday, October 9, 2008

Budgeting, Planning and Controlling

We invite you and your colleagues in your company to attend this training program. Do not hesitate to contact us for more information.

4 Day Program

Using Forecasting Application With MS Excel and Minitab Software

Melia Purosani Hotel – Yogyakarta, October 20 - 23, 2008

Instructor: Dr. Wiwiek M.Daryanto, SE-Ak, MM, CMA

Ir. Heru Kustanto, MSi


Firms are established to manufacture products or to render services to meet consumers’ needs. They do these by utilizing resources (labor, materials, various services, buildings, and equipment). These resources need to be financed, or paid for. To work effectively, the people in a firm need information about the amounts of these resources, the means of financing them, and the results achieved through using them.

Budgeting is the process of planning the activities of the organization’s responsibility centers for the next period, usually the next year. In most markets, total demand and company demand are not stable, and good forecasting becomes a key factor in company success. Poor forecasting can lead to overly large inventories, costly price market-downs, or lost sales due to being out of stock. The more unstable the demand, the more critical is forecast accuracy and the more elaborate is forecasting procedure.

Companies commonly use a three-stage procedure to arrive at a sales forecast. First they make an economic forecast, then use it to make an industry forecast, and then use the industry forecast to make a company sales forecast. The economic forecast calls for projecting inflation, unemployment, interest rates, consumer spending and saving, business investment, government expenditures, net exports, and so on. The result is a forecast of gross national product, which is used along with other indicators to forecast industry sales. Then the company bases its sales forecast on the assumption of achieving a certain share of industry sales.

Forecasting is the art of anticipating what buyers are likely to do under a given set of conditions. This suggests that the buyers should be surveyed. Surveys are especially valuable if the buyers have clearly formulated intentions, will carry them out, and will describe them to interviewers.

Budget is a plan expressed in quantitative (monetary) terms covering a specified period of time, usually one year. Many companies refer to their annual budget as a profit plan, since it shows the planned activities that the company expects to undertake in its responsibility centers in order to obtain its profit goal. The budget serves as:

- An aid in making and coordinating short-range plans.

- A device for communicating these plans to the various responsibility center managers.

- A way of motivating managers to achieve their responsibility centers’ goals.

- A benchmark for controlling ongoing activities.

- A basis for evaluating the performance of responsibility centers and their managers.

- A means of educating managers.

Management control’s purpose is to attain desired results. A budget is a statement of the results desired as of the time the budget was prepared. A carefully prepared budget is the best possible standard against which to compare actual performance. This is because it incorporate the estimated effect of all variables that were foreseen when the budget was being prepared.

A comparison of actual performance with budgeted performance provides a “red flag”; it directs attention to areas where action may be needed. An analysis of the variance between actual and budgeted results may (1) help identify a problem area that needs attention, (2) reveal an exploitable opportunity not predicted in the budgeting process, or (3) reveal that the original budget was unrealistic in some way.


- Understand the principles types of planning activities that are part of the management control process.

- Understand how to do sales forecasting as a basis of budgeting process by using MS. Excel software.

- Understand how to develop two main types of plans: (1) strategic (or long-range) plans, and (2) budgets, which are usually annual plans structured by responsibility centers.

- Learn how to evaluate company’s performance by using budget as a tool for controlling.


Understand the budget’s purposes as a device for making and coordinating plans, for communicating these plans to those responsible for carrying them out, for motivating managers at all levels, as a benchmark for controlling ongoing activities, as a standard with which actual performance subsequently can be compared, and as a means of educating managers.

Who Should Attend

- Managers and supervisors in all areas.


Sales Forecasting


- Uses of the Budget

- The Master Budget

The Operating Budget

- Project Budgets

- Flexible (Variable) Budgets

- Management by Objectives

Preparing the Operating Budget

- Organization for Budget Preparation

- Budget Timetable

- Setting Planning Guidelines

- Preparing the Sales Budget

- Initial Preparation of Other Budget Components

- Negotiation

- Coordination and Review

- Final Approval and Distribution

- Revisions

The Cash Budget

The Capital Expenditure Budget

- Project Proposals

- Authorization

- Follow Up

Reporting and Evaluation

- Control Reports

- Incentive Compensation

- Standard Cost, Variable Costing Systems, Quality Costs, and Joint Costs

- Production Cost Variances

- Analyzing Other Variances

Short-Run Alternative Choice Decisions

Longer-Run Decisions: Capital Budgeting

Your Course Leader

Dr.Wiwiek M.Daryanto, SE-Ak,MM,CMA is an expert in accounting and finance. She earned a degree in accounting from the University of Gadjah Mada, a Master of Management (MM) from the University of the Philippines (UP) and a Doctoral degree from Institut Pertanian Bogor (IPB). She is also a member of Certified Management Accountant of the Institute of Certified Management accountant (ICMA) Australia.

Ir. Heru Kustanto, MSi is a lecturer in Microeconomics, Macroeconomics, Mathematical Economics, Statistics for Business, Market Research, Operations Research, Computer Application for Business and Management Information System. He is also an expert in software design and computer programming. He earned a master degree from Institut Pertanian Bogor (IPB), Majoring in Agro-Based Industrial Technology. He is a candidate of Doctor of Philosophy (Ph D) in Agricultural Economics, Institut Pertanian Bogor.

Workshop Fee

Rp 7,500.000,-- per participant. This will cover workshop fee, snack and lunch. Hotel accommodation and transport to the workshop venue are not included in this fee. For those who live outside of Yogyakarta we will be happy to assist you to book the hotel for you.

Participants will receive

  1. Hard copy of presentation materials.
  2. Certificate of Attendance
  3. CD: soft copy of presentation materials and simulation software

Contact us for more information: Our Address :

Phone : 021- 8661-3585; 021-8661-2052 Jl. Utama V/18, Pondok Bambu

FAX : 021- 861-6982 J a k a r t a 13430

Ulin: 021-3212-9043 email : ;

Tika: 0813-2539-0528 ;

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