BUDGET E BUSINESS PLAIN

This course contributes to the Bachelor's Degree Programme main objectives of training undergraduates able to work in private and public organizations, by developing knowledge and skills in the business administration area. In particular, the course provides the theoretical framework and the operational skills needed to apply management tools for business planning and budgeting at different types of companies. The course deals with both the accounting aspects and the organizational implications.

1) Knowledge and understanding
At the end of this course, students are expected to have developed a solid knowledge of the main aspects of the budgeting and business planning tools, such as:
- the role of budget, both from the financial and organisational perspective, and the budgeting process;
- the master budget components (operating budget, cash budget and capital budget);
- the preparatory analyses required by the development of a business plan;
- the contents of a business plan.

2) Applying knowledge and understanding
At the end of this course, students are expected to be able to apply the main planning tools. In particular:
- to prepare a master budget;
- to draw up a business plan, both in its qualitative and quantitative part.

3) Making judgements
At the end of this course, students are expected to be able to critically discuss the nature and uses of budget and business plan.

To attend this course, it is necessary to be familiar with the basic concepts of Economia Aziendale, Bilancio e analisi economico-finanziaria, and Analisi e contabilità dei costi. In particular, students are expected to have knowledge of the calculation and interpretation of financial ratios, cashflow statement structure and analysis, cost-volume relationships, breakeven point analysis.

Budget
- Budget as a management control tool
- The budget functions and uses
- The budgeting process: technical and managerial aspects
- The parts of the master budget and its preparation
- Variance analysis

Business plan
- Strategy and strategic planning
- Business plan objectives and structure
- The qualitative part of the business plan: the revenue-based approach and the cost-based approach
- The quantitative part of the business plan: the financial analysis and the projected financial statement
- Business plan assessment

Information on textbooks will be provided before the beginning of the course.

Students' final assessment consists of a written test and an oral test. The written test lasts 120 minutes and requires to solve some exercises and answer some multiple choice questions. Students who pass the written test will have to take the oral exam, which aims at testing students' knowledge of the basic notions of the subject. Students are expected to apply knowledge and thinking skills to problems having no straightforward solutions.

The course includes lectures during which the theoretical aspects are presented and examples of the analysis tools are carried out.

written and oral