Students often need activities to help them process and understand accounting concepts. This is especially true for managerial accounting, a course offered to accounting and nonaccounting (including non-business) majors. One such activity is the personal budget. It’s a simple value-added activity that is used to demonstrate key course concepts such as cost behavior, profit planning, and variance analysis in the managerial accounting course. This paper describes the personal budget exercise and provides accounting instructors with a template for use in their own course.
This article is from the Accounting Instructors’ Report, an electronic journal that provides teaching tips and insights to those who teach accounting and other business courses.
Raymond J. Elson, Valdosta State University