Successful companies in the innovation economy use their strategy as a guide to every decision. Setting standard costs and developing budgets are ways that companies implement these key strategies. 

In this course, you learn how to develop better standard costs and budgets. You also learn how to evaluate performance to take corrective action, ensuring that your results are in line with your strategy and plans.

Learning Objectives
  • Describe certain types of budgets and how they are used in organizations.
  • Summarize how companies use standard costing to track and create more accurate product costing information needed to make better decisions.
  • Describe how to calculate variances and the types of budget variances (favorable and unfavorable) and their impact on operations.
  • Determine how to review direct labor and direct materials variances, how they are calculated and what they mean.
  • Discover a methodology for interpreting budget variances
Last updated/reviewed: August 14, 2023
15 Reviews (46 ratings)

Reviews

4
Anonymous Author
Good overview starting with the types of budgets, the setting and purpose of standard cost, the examples and use of variance, and closing with performance evaluation and action plan. It will be more helpful to include the discussion of OH variance.
4
Anonymous Author
The content was very good and presented in an easily understandable manner, however the instructor seemed to have some difficulty in speaking
4
Anonymous Author
Good course explaining the budgeting process and how it can be used to evaluate performance and make adjustments as needed.
4
Anonymous Author
This course provided good examples for the calculating price versus efficiency variances.
3
Anonymous Author
not a lot of heavy lifting here but still provides some good reminders tot he participant
4
Anonymous Author
Great refresher course on cost/managerial accounting. I liked the hands on exercises.
4
Member's Profile
This course help me to know how important is the Budget.
3
Member's Profile
good overview of budgets, standard costs and variances
3
Anonymous Author
The course was more basic than I expected.
4
Anonymous Author
Good examples integrated with concepts.
4
Member's Profile
Pretty good for a fundamental course.
Anonymous Author
A nice refresher but nothing new.
5
Member's Profile
Great course! Very informative.
5
Anonymous Author
great refresher for the basics
3
Anonymous Author
None
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Prerequisites
Course Complexity: Foundational

No advanced preparation or prerequisites are required for this course.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
  Course Overview CPE
Course Syllabus
INTRODUCTION AND OVERVIEW
  4:12PREVIEW: Introduction to Evaluating Performance
Standard Costing and Variances
  Budgets9:32
  Standards2:31
  Variances14:28
Root Causes
  Root Causes2:11
  Hands on Root Causes14:28
CONCLUSION
  Summary3:16
Continuous Play
  Evaluating Performance using Standard Costing and Variances50:46
SUPPORTING MATERIALS
  Slides: Standard Costing and VariancesPDF
  Budgets Standards Costing and Variances Glossary IndexPDF
REVIEW & TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam