Curricular Unit:Code:
Budget Management and Control1175GCO
3UndergraduateBusiness Sciences6 ects
Learning Period:Language of Instruction:Total Hours:
Spring SemesterPortuguese/English78
Learning Outcomes of the Curricular Unit:
Starting from the definition and setting of Budgetary Control in the planning cycle, the main techniques used in the preparation and articulation of the different types of budgets are then presented, as well as the forecasting financial statements that emerge from them. The importance of the deviation analysis within the principles of budgetary control is emphasized. In the end the student should have acquired the skills that will allow him to prepare the budget of an enterprise, the forecasting financial demonstrations, and evaluate and analyse the deviations, proposing corrective measures.
From the concepts of Company as a System, Organisational Structure, Management, Planning and Control, those of Budgetary System and Budgeting and Budget Control evolve. Based on Forecasts and Information, different types of Budgets are made which will allow in the making of Technical Forecasting Charts – within the Portuguese accounting plan and rules – namely the Financial Plan, the Forecasting Balance Sheet and the Profit and Loss Statement that will be used in the analysis of the Deviations from Management and Budgetary Control.
Demonstration of the Syllabus Coherence with the Curricular Unit's Objectives:
Be able to fit budget management in the planning cycle as well as recognize the importance of the organizational structure and the study of the environment for business success. Recognize the limitations of management control and the benefits of new business performance management systems, including the Balanced Scorecard.
Master the joint budgeting techniques and its forecasting financial statements. Understand the importance of internal and environment information for the preparation of forecasts. Acquire skills for the preparation of annual budgets of companies and their forecasting financial statements.
Master the concepts and principles related to management control, namely the calculation and analysis of deviations.
Teaching Methodologies (Including Evaluation):
The teaching methodology is explanatory and participatory in nature and includes the presentation of concepts, accompanied by practical examples, and the resolution and analysis of case studies. The evaluation of skills will be measured based on the realization of 2 intermediate assessment tests (with a weight of 50% each in the final grade). The minimum marks in each test is 8 (eight) marks and the final marks for approval in the subject is 10 (ten) marks.
Demonstration of the Coherence between the Teaching Methodologies and the Learning Outcomes:
In order to frame budget management in the planning cycle and from the definitions of company as a system and organizational structure, management, planning and control concepts are introduced. The evolution of its functions and characteristics is also addressed and the importance of the organizational structure and the study of the surrounding environment are also emphasized. Once framed the management control process, as well as its limitations, some of the advantages of the new performance management systems are explained, namely the Balanced Scorecard, regarding the fact these contemplate qualitative data and indicators that emerge from the critical success factors. The study of the budgetary system involves the presentation of its definition, the explanation of its framing in the planning cycle and the conditions for its implementation. The concept and content of forecasts is presented and the importance of information –internal and related to the environment – to its preparation is explained. Explanation and examples of content and linkage of the main budgets (sales, production, supplies, general expenses, investments and financing), which will enable the preparation of provisional financial statements which together make up the annual budget of the company. Several practical case studies of budgeting and related financial statements are solved. Explanation of the importance of budgetary control as a form of management control and exemplification, through practical case studies, of the calculation and analysis of deviations.
Caiado, A. C. P. (2015). Contabilidade Analítica e de Gestão. 8ª Edição, Lisboa, Áreas Editora.
Gama, A. P. (2012). Performance Empresarial - Conceito, Abordagens e Métodos de Avaliação. Porto, Porto Editora.
Jordan, H., Neves, J. C. e Rodrigues, J. A. (2015). O Controlo de Gestão ao Serviço da Estratégia e dos Gestores. 10ª Edição, Lisboa, Áreas Editora.
Kaplan, R. S. e Norton, D. P. (1997). A Estratégia em Ação – Balanced Scorecard. 23ª Ed., Rio de Janeiro, Editora Campus.
Base de Dados:
Lecturer (* Responsible):
Amândio Silva (