AAT BGT Tutor Study Notes
aat
Study Notes
QCF Diploma in Accounting
Level 4
BUDGETING
(BGT)
Principles of Budgeting
Drafting Budgets
TUTOR NOTES
© Kaplan Financial Limited, 2010
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any firm or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of Kaplan Publishing.
The text in this material and any others made available by any Kaplan Group company does not amount to advice on a particular matter and should not be taken as such. No reliance should be placed on the content as the basis for any investment or other decision or in connection with any advice given to third parties. Please consult your appropriate professional adviser as necessary. Kaplan Publishing Limited and all other Kaplan group companies expressly disclaim all liability to any person in respect of any losses or other claims, whether direct, indirect, incidental, consequential or otherwise arising in relation to the use of such materials.
ii
KAPLAN PUBLISHING
CONTENTS
Session
Page
Session 1:
The Business Environment
Session 2:
Collection of cost information; Cost behaviour
11
Session 3:
Accounting for overheads
17
Session 4:
Forecasting Methods and techniques
27
Session 5:
Standard Costing and variance analysis
39
Session 6:
Investigating and reporting variances
53
Session 7:
Performance indicators
67
Session 8:
Budget Preparation
79
Session 9:
Budgetary control and responsibility accounting
101
Appendix :
Alternative approaches to variances
107
KAPLAN PUBLISHING
3
iii
iv
KAPLAN PUBLISHING
INTRODUCTION
Principles of Budgeting and Drafting budgets are combined for assessment purposes. The purpose of this document is to describe what is assessable for each of these criteria.
Please read this document
Study Notes
QCF Diploma in Accounting
Level 4
BUDGETING
(BGT)
Principles of Budgeting
Drafting Budgets
TUTOR NOTES
© Kaplan Financial Limited, 2010
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any firm or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of Kaplan Publishing.
The text in this material and any others made available by any Kaplan Group company does not amount to advice on a particular matter and should not be taken as such. No reliance should be placed on the content as the basis for any investment or other decision or in connection with any advice given to third parties. Please consult your appropriate professional adviser as necessary. Kaplan Publishing Limited and all other Kaplan group companies expressly disclaim all liability to any person in respect of any losses or other claims, whether direct, indirect, incidental, consequential or otherwise arising in relation to the use of such materials.
ii
KAPLAN PUBLISHING
CONTENTS
Session
Page
Session 1:
The Business Environment
Session 2:
Collection of cost information; Cost behaviour
11
Session 3:
Accounting for overheads
17
Session 4:
Forecasting Methods and techniques
27
Session 5:
Standard Costing and variance analysis
39
Session 6:
Investigating and reporting variances
53
Session 7:
Performance indicators
67
Session 8:
Budget Preparation
79
Session 9:
Budgetary control and responsibility accounting
101
Appendix :
Alternative approaches to variances
107
KAPLAN PUBLISHING
3
iii
iv
KAPLAN PUBLISHING
INTRODUCTION
Principles of Budgeting and Drafting budgets are combined for assessment purposes. The purpose of this document is to describe what is assessable for each of these criteria.
Please read this document