管理成本會計課件

ProfitPlanningChapter10ProfitPlanningChapter10LearningObjective1Understandwhyorganizationsbudgetandtheprocessestheyusetocreatebudgets.LearningObjective1UnderstandTheBasicFrameworkofBudgetingAbudgetisadetailedquantitativeplanforacquiringandusingfinancialandotherresourcesoveraspecifiedforthcomingtimeperiod.Theactofpreparingabudgetiscalledbudgeting.Theuseofbudgetstocontrolanorganization’sactivitiesisknownasbudgetarycontrol.TheBasicFrameworkofBudgetiPlanningandControlPlanning–

involvesdevelopingobjectivesandpreparingvariousbudgetstoachievethoseobjectives.Control

–

involvesthestepstakenbymanagementtoincreasethelikelihoodthattheobjectivessetdownwhileplanningareattainedandthatallpartsoftheorganizationareworkingtogethertowardthatgoal.PlanningandControlPlanning–AdvantagesofBudgetingAdvantagesDefinegoalsandobjectivesUncoverpotentialbottlenecksCoordinateactivitiesCommunicateplansMeansofallocatingresourcesAdvantagesofBudgetingAdvantaResponsibilityAccounting

Managersshouldbeheldresponsibleforthoseitems-andonlythoseitems-thattheycanactuallycontrol

toasignificantextent.ResponsibilityAccountingManChoosingtheBudgetPeriodOperatingBudget2011201220132014Operatingbudgetsordinarilycoveraone-yearperiodcorrespondingtoacompany’sfiscalyear.Manycompaniesdividetheirannualbudgetintofourquarters.Acontinuousbudgetisa

12-monthbudgetthatrolls

forwardonemonth(orquarter)

asthecurrentmonth(orquarter)

iscompleted.ChoosingtheBudgetPeriodOperLearningObjective2UnderstandBasicBudgetingTermsandtheBehavioralAspectsofBudgeting.LearningObjective2UnderstandBottom-upandTop-downBudgetingBottom-upbudgeting(Self-imposedbudgetorParticipativebudget)Top-downbudgetingTopManagementMiddleManagementLower-levelManagementTopManagementMiddleManagementLower-levelManagementBottom-upandTop-downBudgetiAdvantagesoftheBottom-upBudgeting(Self-ImposedBudgets)Individualsatalllevelsoftheorganizationareviewedasmembersoftheteamwhosejudgmentsarevaluedbytopmanagement.Budgetestimatespreparedbyfront-linemanagersareoftenmoreaccuratethanestimatespreparedbytopmanagers.Motivationisgenerallyhigherwhenindividualsparticipateinsettingtheirowngoalsthanwhenthegoalsareimposedfromabove.Amanagerwhoisnotabletomeetabudgetimposedfromabovecanclaimthatitwasunrealistic.Self-imposedbudgetseliminatethisexcuse.AdvantagesoftheBottom-upBuHowtoovercomeproblemsofself-imposedbudgetsSelf-imposedbudgetsshouldbereviewedbyhigherlevelsofmanagementtoprevent“budgetaryslack(orbudgetpadding).”Mostcompaniesissuebroadguidelinesintermsofoverallprofitsorsales.Lowerlevelmanagersaredirectedtopreparebudgetsthatmeetthosetargets.HowtoovercomeproblemsofseAdvantagesoftheTop-downBudgetingAvoidthepotentialbudgetaryslack(budgetpadding).Provideaclearerperformancegoalsandexpectationsfromthetopmanagement.Mayprovidebetterbudgetduetotopmanagement’saccesstoprivileged/confidentialmarketandorganizationinformation.Provideanefficientbudgetaryprocess.AdvantagesoftheTop-downBudBudgetLapsingApopularmethodamonggovernmentagencies,universitiesandorganizationsrelyingonallocatedfunds.Anyunusedfundingattheendofthefinancialperiodcannotbecarriedforwardtothefollowingyear.Asaresult,thefollowingyear’sbudgetmaybecutbecauseoftheunder-expenditureinthepreviousyear.BudgetLapsingApopularmethodBudgetLapsing:AdvantagesBudgetlapsinghelpsensurethattheappropriatelevelofresourcesisutilizedineachperiod.Withoutbudgetlapsing,risk-aversemanagersmayunnecessarilyaccumulatefundsandthismayadverselyaffecttheperformanceoftheorganization.Ithelpsprovideanopportunityforacleancut-offofexpendituresandtoreallocateanyunusedresourcesforothermoreappropriaterequirements.BudgetLapsing:AdvantagesBudgBudgetLapsing:PotentialProblem&SolutionBudgetlapsingcancauseundesiredbehavioreffects.Forexample,managersmaywastefullyspendtheirentirebudgetbeforetheendoftheperiodinordertoavoidbudgetcuts.

Asystemofreviewingtheexpendituresnearendoftheperiodmayuncoverunnecessaryexpendituresanddiscouragemanagerstowastefullyspendbecauseofbudgetlapsing.BudgetLapsing:PotentialProbIncrementalversusZero-basedBudgetsIncrementalmethodofbudgetingismostcommonlyusedbycompanies.Companiesstartoffoneyear’sbudgetbyreferringbacktothepreviousyear’sfigures.Adjustmentsarethenmadetothebudgettoaccountfortheexpectedchangessuchaspricesforthenextyear.Whileincrementalmethodofbudgetingispracticalandfast,anyinefficiencyinthepreviousyear’sfiguresmaybecarriedforward.Forexample,ifallalongtheorganizationisoverstaffed,thenthebudgetwillcontinuallytobeallowingfortheoverstaffingsituationunderthismethod.IncrementalversusZero-basedIncrementalversusZero-basedBudgetsZero-BasedBudgetsarepreparedbasedontheassumptionthatthecompanyhasjuststarted.Therefore,resourcesrequiredhavetobejustifiedfromscratch.Forexample,whenbudgetingforstaffcostforarestaurant,managersusingthezero-basedbudgetingapproachwillignoretheexistingstafflevelandexpenses,rather,theywillexaminefactorssuchasopeninghours,numberoftables,expectedpatronnumberstoworkoutthenumberofstaffrequiredateachpositionandlevel,hencetheassociatecosts,toproduceabudget.IncrementalversusZero-basedIncrementalversusZero-basedBudgetsCompaniesusingthezero-basedmethoddonotsimplyignorepreviousyears’figures.Figuresgeneratedbythezero-basedmethodareusuallycomparedwithpreviousyears’figures.Anylargedifferencesareinvestigated.Aszero-basedbudgetingistimeconsumingandcostly,companiestendtousethismethodfortherelativelylargeitemsandtheincrementalmethodfortherest.IncrementalversusZero-basedTopManagementAttitude:

HumanFactorsinBudgetingThesuccessofabudgetprogramdependsonthreeimportantfactors:Topmanagementmustbeenthusiasticand

committedtothebudgetprocess.Topmanagementmustnotusethebudgetto

pressureemployeesorblamethemwhen

somethinggoeswrong.Budgettargetsshouldbechallengingbutachievableinordertohavegoodmotivationaleffects.TopManagementAttitude:

HumanTheBudgetCommitteeAstandingcommitteeresponsibleforoverallpolicymattersrelatingtothebudgetcoordinatingthepreparationofthebudgetresolvingdisputesrelatedtothebudgetapprovingthefinalbudgetTheBudgetCommitteeAstandingLearningObjective3UnderstandtheKeyComponentsofMasterBudgetinManufacturing,MerchandisingandServiceIndustriesLearningObjective3UnderstandUnderstandthekeycomponentsofmasterbudgetinManufacturing,Merchandising,andServiceIndustriesThefirststepofbudgetingforeverybusinessistobudgetfortherevenue,whetheritisasalesbudgetforprovidinggoodsorservicesorafundingbudget.Althoughoperationalbudgetsareadaptedaccordingtotheindustries,theyareverysimilarandtypicallycompriseofbudgetsforIncomestatementCashBalancesheet.Themajordifferencesofdifferentindustriesinclude:Manufacturing:productionbudgetisinvolvedMerchandising:noproductionbudget,onlypurchasebudgetofmerchandiseisrequired.ServiceIndustries:budgetforrevenueandcostofprovidingservicesNot-for-profit:expectedfundingavailableandplanusageoffunding.UnderstandthekeycomponentsLearningObjective4PrepareaMasterBudgetforaManufacturingCompany.LearningObjective4PrepareaTheMasterBudget:AnOverviewProductionbudgetSellingandadministrativebudgetDirectmaterialsbudgetManufacturingoverheadbudgetDirectlabor

budgetCashBudgetSalesbudgetEndinginventorybudgetBudgeted

balancesheetBudgeted

income

statementTheMasterBudget:AnOverviewLearningObjective4(a)Prepareasalesbudget,includingascheduleofexpectedcashcollections.LearningObjective4(a)PreparBudgetingExampleRoyalCompanyispreparingbudgetsforthe

quarterendingJune30.Budgetedsalesforthenextfivemonthsare:April 20,000unitsMay 50,000unitsJune 30,000unitsJuly 25,000unitsAugust 15,000units.Thesellingpriceis$10perunit.BudgetingExampleRoyalCompanTheSalesBudgetTheindividualmonthsofApril,May,andJunearesummedtoobtainthetotalbudgetedsalesinunitsanddollarsforthequarterendedJune30thTheSalesBudgetTheindividualExpectedCashCollectionsAllsalesareonaccount.Royal’scollectionpatternis:70%collectedinthemonthofsale,25%collectedinthemonthfollowingsale,5%uncollectible.TheMarch31accountsreceivablebalanceof$30,000willbecollectedinfull.ExpectedCashCollectionsAllsExpectedCashCollectionsExpectedCashCollectionsExpectedCashCollectionsFromtheSalesBudgetforApril.ExpectedCashCollectionsFromExpectedCashCollectionsFromtheSalesBudgetforMay.ExpectedCashCollectionsFromQuickCheck

Whatwillbethetotalcashcollectionsforthequarter?a.$700,000b.$220,000c.$190,000d.$905,000QuickCheck Whatwillbeth

Whatwillbethetotalcashcollectionsforthequarter?a.$700,000b.$220,000c.$190,000d.$905,000QuickCheck WhatwillbethetotalcashExpectedCashCollectionsExpectedCashCollectionsLearningObjective4(b)Prepareaproductionbudget.LearningObjective4(b)PreparTheProductionBudgetProductionBudgetSalesBudget

and

Expected

Cash

CollectionsCompletedTheproductionbudgetmustbeadequatetomeetbudgetedsalesandtoprovideforthedesiredendinginventory.TheProductionBudgetProductioTheProductionBudgetThemanagementatRoyalCompanywantsendinginventorytobeequalto20%ofthefollowingmonth’sbudgetedsalesinunits.

OnMarch31,4,000unitswereonhand.

Let’spreparetheproductionbudget.TheProductionBudgetThemanagTheProductionBudgetTheProductionBudgetTheProductionBudgetMarch31endinginventoryTheProductionBudgetMarch31QuickCheck WhatistherequiredproductionforMay?a.56,000unitsb.46,000unitsc.62,000unitsd.52,000unitsQuickCheck Whatisthereq WhatistherequiredproductionforMay?a.56,000unitsb.46,000unitsc.62,000unitsd.52,000unitsQuickCheck WhatistherequiredproductTheProductionBudgetTheProductionBudgetTheProductionBudgetAssumedendinginventory.TheProductionBudgetAssumedeLearningObjective4(c)Prepareadirectmaterialsbudget,includingascheduleofexpectedcashdisbursementsforpurchasesofmaterials.LearningObjective4(c)PreparTheDirectMaterialsBudgetAtRoyalCompany,fivepounds

ofmaterialarerequiredperunitofproduct.Managementwantsmaterialsonhandattheendofeachmonthequalto10%ofthefollowingmonth’sproduction.OnMarch31,13,000poundsofmaterialareonhand.Materialcostis$0.40

perpound.

Let’spreparethedirectmaterialsbudget.TheDirectMaterialsBudgetAtTheDirectMaterialsBudgetFromproductionbudgetTheDirectMaterialsBudgetFroTheDirectMaterialsBudgetTheDirectMaterialsBudgetTheDirectMaterialsBudgetCalculatethematerialsto

bepurchasedinMay.March31inventory10%offollowingmonth’sproductionneeds.TheDirectMaterialsBudgetCalQuickCheck HowmuchmaterialsshouldbepurchasedinMay?a.221,500poundsb.240,000poundsc.230,000poundsd.211,500poundsQuickCheck Howmuchmateri HowmuchmaterialsshouldbepurchasedinMay?a.221,500poundsb.240,000poundsc.230,000poundsd.211,500poundsQuickCheck HowmuchmaterialsshouldbeTheDirectMaterialsBudgetTheDirectMaterialsBudgetTheDirectMaterialsBudgetAssumedendinginventoryTheDirectMaterialsBudgetAssExpectedCashDisbursementforMaterialsRoyalpays$0.40perpoundforitsmaterials.One-halfofamonth’spurchasesispaidforinthemonthofpurchase;theotherhalfispaidinthefollowingmonth.TheMarch31accountspayablebalanceis$12,000.

Let’scalculateexpectedcashdisbursements.ExpectedCashDisbursementforExpectedCashDisbursementforMaterialsExpectedCashDisbursementforExpectedCashDisbursementforMaterials140,000lbs.×$0.40/lb.=$56,000Computetheexpectedcash

disbursementsformaterials

forthequarter.ExpectedCashDisbursementforQuickCheck Whatarethetotalcashdisbursementsforthequarter?a.$185,000b.$68,000c.$56,000d.$201,400QuickCheck Whataretheto Whatarethetotalcashdisbursementsforthequarter?a.$185,000b.$68,000c.$56,000d.$201,400QuickCheck WhatarethetotalcashdisbExpectedCashDisbursementforMaterialsExpectedCashDisbursementforLearningObjective4(d)Prepareadirectlaborbudget.LearningObjective4(d)PreparTheDirectLaborBudgetAtRoyal,eachunitofproductrequires0.05hours(3minutes)ofdirectlabor.TheCompanyhasa“nolayoff”policysoallemployeeswillbepaidfor40hoursofworkeachweek.ForpurposesofourillustrationassumethatRoyalhasa“nolayoff”policy,workersarepayattherateof$10perhourregardlessofthehoursworked.Forthenextthreemonths,thedirectlaborworkforcewillbepaidforaminimumof1,500hourspermonth.Let’spreparethedirectlaborbudget.TheDirectLaborBudgetAtRoyaTheDirectLaborBudgetFromproductionbudget.TheDirectLaborBudgetFromprTheDirectLaborBudgetTheDirectLaborBudgetTheDirectLaborBudgetGreateroflaborhoursrequiredorlaborhoursguaranteed.TheDirectLaborBudgetGreaterTheDirectLaborBudgetTheDirectLaborBudgetQuickCheck Whatwouldbethetotaldirectlaborcostforthequarterifthecompanyfollowsitsnolay-offpolicy,butpays$15(time-and-a-half)foreveryhourworkedinexcessof1,500hoursinamonth?a.$79,500b.$64,500c.$61,000d.$57,000QuickCheck Whatwouldbet Whatwouldbethetotaldirectlaborcostforthequarterifthecompanyfollowsitsnolay-offpolicy,butpays$15(time-and-a-half)foreveryhourworkedinexcessof1,500hoursinamonth?a.$79,500b.$64,500c.$61,000d.$57,000QuickCheck WhatwouldbethetotaldireLearningObjective4(e)Prepareamanufacturingoverheadbudget.LearningObjective4(e)PreparManufacturingOverheadBudgetAtRoyal,manufacturingoverheadisappliedtounitsofproductonthebasisofdirectlaborhours.Thevariablemanufacturingoverheadrateis$20perdirectlaborhour.Fixedmanufacturingoverheadis$50,000permonth,whichincludes$20,000ofnoncashcosts(primarilydepreciationofplantassets).

Let’spreparethemanufacturingoverheadbudget.ManufacturingOverheadBudgetAManufacturingOverheadBudgetDirectLaborBudget.ManufacturingOverheadBudgetDManufacturingOverheadBudgetTotalmfg.OHforquarter$251,000

Totallaborhoursrequired5,050=$49.70perhour**roundedManufacturingOverheadBudgetTManufacturingOverheadBudgetDepreciationisanoncashcharge.ManufacturingOverheadBudgetDEndingFinishedGoodsInventoryBudgetDirectmaterialsbudgetandinformation.EndingFinishedGoodsInventorEndingFinishedGoodsInventoryBudgetDirectlaborbudget.EndingFinishedGoodsInventorEndingFinishedGoodsInventoryBudgetTotalmfg.OHforquarter$251,000

Totallaborhoursrequired5,050=$49.70perhour*EndingFinishedGoodsInventorEndingFinishedGoodsInventoryBudgetProductionBudget.EndingFinishedGoodsInventorLearningObjective4(f)Prepareasellingandadministrativeexpensebudget.LearningObjective4(f)PreparSellingandAdministrativeExpenseBudgetAtRoyal,thesellingandadministrativeexpensebudgetisdividedintovariableandfixedcomponents.Thevariablesellingandadministrativeexpensesare$0.50perunitsold.Fixedsellingandadministrativeexpensesare$70,000permonth.Thefixedsellingandadministrativeexpensesinclude$10,000incosts–primarilydepreciation–thatarenotcashoutflowsofthecurrentmonth.

Let’spreparethecompany’ssellingandadministrativeexpensebudget.SellingandAdministrativeExpSellingandAdministrativeExpenseBudgetCalculatethesellingandadministrative

cashexpensesforthequarter.SellingandAdministrativeExpQuickCheck Whatarethetotalcashdisbursementsforsellingandadministrativeexpensesforthequarter?a.$180,000b.$230,000c.$110,000d.$70,000QuickCheck Whataretheto Whatarethetotalcashdisbursementsforsellingandadministrativeexpensesforthequarter?a.$180,000b.$230,000c.$110,000d.$70,000QuickCheck WhatarethetotalcashdisbSellingAdministrativeExpenseBudgetSellingAdministrativeExpenseLearningObjective4(g)Prepareacashbudget.LearningObjective4(g)PreparFormatoftheCashBudgetThecashbudgetisdividedintofoursections:Cashreceiptssectionlistsallcashinflowsexcludingcashreceivedfromfinancing;Cashdisbursementssectionconsistsofallcashpaymentsexcludingrepaymentsofprincipalandinterest;Cashexcessordeficiencysectiondeterminesifthecompanywillneedtoborrowmoneyorifitwillbeabletorepayfundspreviouslyborrowed;andFinancingsectiondetailstheborrowingsandrepaymentsprojectedtotakeplaceduringthebudgetperiod.FormatoftheCashBudgetThecTheCashBudgetAssumethefollowinginformationforRoyal:Maintainsa16%openlineofcreditfor$75,000Maintainsaminimumcashbalanceof$30,000BorrowsonthefirstdayofthemonthandrepaysloansonthelastdayofthemonthPaysacashdividendof$49,000inAprilPurchases$143,700ofequipmentinMayand$48,300inJune(bothpurchasespaidincash)HasanApril1cashbalanceof$40,000TheCashBudgetAssumethefollTheCashBudgetScheduleofExpectedCashCollections.TheCashBudgetScheduleofExpTheCashBudgetDirectLaborBudget.ManufacturingOverheadBudget.SellingandAdministrativeExpenseBudget.ScheduleofExpectedCashDisbursements.TheCashBudgetDirectLaborManTheCashBudgetBecauseRoyalmaintainsacashbalanceof$30,000,thecompanymustborrow$50,000onitsline-of-credit.TheCashBudgetBecauseRoyalmTheCashBudgetEndingcashbalanceforAprilisthebeginningMaybalance.BecauseRoyalmaintainsacashbalanceof$30,000,thecompanymustborrow$50,000onitsline-of-credit.TheCashBudgetEndingcashbalTheCashBudgetTheCashBudgetQuickCheck Whatistheexcess(deficiency)ofcashavailableoverdisbursementsforJune?a.$85,000b.$(10,000)c.$75,000d.$95,000QuickCheck Whatistheexc Whatistheexcess(deficiency)ofcashavailableoverdisbursementsforJune?a.$85,000b.$(10,000)c.$75,000d.$95,000QuickCheck Whatistheexcess(deficienTheCashBudget$50,000×16%×3/12=$2,000

BorrowingsonApril1and

repaymentonJune30.TheCashBudget$50,000×16%×TheBudgetedIncomeStatementCashBudgetBudgetedIncomeStatementCompletedWithinterestexpensefromthecashbudget,Royalcanpreparethebudgetedincomestatement.TheBudgetedIncomeStatementCLearningObjective4(h)Prepareabudgetedincomestatement.LearningObjective4(h)PrepareTheBudgetedIncomeStatementSalesBudget.EndingFinished

GoodsInventory.Sellingand

Administrative

ExpenseBudget.CashBudget.TheBudgetedIncomeStatementSLearningObjective4(i)Prepareabudgetedbalancesheet.LearningObjective4(i)PreparTheBudgetedBalanceSheetRoyalreportedthefollowingaccountbalancespriortopreparingitsbudgetedfinancialstatements:Land-$50,000Commonstock-$200,000Retainedearnings-$146,150(April1)Equipment-$175,000TheBudgetedBalanceSheetRoya管理成本會計課件管理成本會計課件LearningObjective5PrepareBudgetontheKeyComponentsfortheServiceIndustryLearningObjective5PrepareBuKeyBudgetComponentsfortheServiceIndustryWonderWorld,ahypotheticalthemepark,hasthefollowingdata:MainSourcesofRevenueMajorExpensesDepartmentsTicketingFood&BeveragesSouvenirShopSalariesRentCostofSalesAdvertisingMaintenanceDepreciationUtilitiesFinance&AdministrationOperationsMarketingSouvenirShopFoodandBeveragesMaintenanceKeyBudgetComponentsfortheLearningObjective5(a)PrepareaVisitorshipBudgetLearningObjective5(a)PreparVisitorshipBudgetNumberofVisitorsAdults750,000Children250,000TotalVisitors1,000,000Basedonhistoricalrecords,economicoutlook,touristarrivalexpectations,thefollowingvisitorshipbudgetforthecomingyearisprepared:VisitorshipBudgetNumberofViLearningObjective5(b)PrepareaRevenueBudgetLearningObjective5(b)PreparRevenueBudgetRevenuepervisitorGateCollections:Adults$13GateCollections:Children$9SouvenirShop$4FoodandBeverages$6BasedontheaveragepricechargedbyWonderWorldandotherhistoricaldata,thefollowingrevenuespervisitorarebudgetedandapprovedbythetopmanagement:RevenueBudgetRevenuepervisiRevenueBudgetRevenueGateCollections:Adults1$9,750,000GateCollections:Children2$2,250,000SouvenirShop3$4,000,000FoodandBeverages4$6,000,000TotalRevenue$22,000,000Withthebudgetednumberofvisitorsandrevenuespervisitorfromeachcategory,thebudgetedrevenuesarecomputed:Note1750,000X$132250,000X$931,000,000X$441,000,000X$6RevenueBudgetRevenueGateCollLearningObjective5(c)PrepareaCostofSalesBudgetandExpenseBudgetLearningObjective5(c)PreparCostofSalesBudgetCostofSalesSouvenirShop$2,000,000FoodandBeverage$3,000,000Total$5,000,000Forcostofsalesonsouvenirsandfoodandbeverages,thecompanynormallymakesuseofthehistoricalcostofsales%andtakesintoaccountofanyexpectedpricechangesfromthesuppliers.Forthecomingyear,theexpectedcostofsales%is50%onsalesforboththesouvenirshopandfoodandbeverages.CostofSalesBudgetCostofSaExpensesBudget

Howtheitemsarebudgetedwilldependonthenatureoftheitems.NatureofexpenseAmountBudgetapproachRental$1,100,0005%ofrevenueasagreedwiththelandlord.Salaries$3,500,000Zerobasedapproachbyreviewingtheactualrequirementofeachpositionanditssuitablerateofpay.Advertising$1,200,000Proposedbymarketingmanager.Maintenance$980,000Proposedbymaintenancemanager.Depreciation$890,000Computedbythefinancemanagerbytakingintoaccountofexistingassetsandproposednewassets.Utilities$580,000Computedbymaintenancemanagerbasedontheratesandusageexpectations.Otheroperatingexpenses$490,000Basedonjudgmentandanyspecificrequirementssuchaslegalexpenses.Total$8,740,000ExpensesBudget

HowtheitemsLearningObjective5(d)PrepareaBudgetedIncomeStatementLearningObjective5(d)PreparBudgetedIncomeStatementBudgetedIncomeStatementRevenue$22,000,000Costofgoodssold$5,000,000Expenses$8,740,000Netincome$8,260,000BudgetedIncomeStatementcanbepreparedbyputtingallpreviousbudgetedinformationtogether.BudgetedIncomeStatementBudgeLearningObjective6ExplaintheCostsandBenefitsofBudgetingLearningObjective6ExplainthCostsandBenefitsofBudgetingBudgetingistime-consumingandcostly.Budgetaryslackorpaddingisaninherentproblemofbudgeting.Despitethedrawbacksofbudgeting,mostcompaniesarestillusingbudgetstoplan,communicate,setobjectivesandallocateresourcesetc.Sincebudgetsarestillcommonlyused,benefitsofbudgetingarehighanddrawbacksofbudgetingcanbeminimizedbyhavingagoodbudgetingsystem.Foragoodbudgetingsystem,itiscriticaltohaveeffectivecommunicationandmutualtrustbetweenthetopmanagementanditsstaff.CostsandBenefitsofBudgetin演講完畢，謝謝觀看！演講完畢，謝謝觀看！ProfitPlanningChapter10ProfitPlanningChapter10LearningObjective1Understandwhyorganizationsbudgetandtheprocessestheyusetocreatebudgets.LearningObjective1UnderstandTheBasicFrameworkofBudgetingAbudgetisadetailedquantitativeplanforacquiringandusingfinancialandotherresourcesoveraspecifiedforthcomingtimeperiod.Theactofpreparingabudgetiscalledbudgeting.Theuseofbudgetstocontrolanorganization’sactivitiesisknownasbudgetarycontrol.TheBasicFrameworkofBudgetiPlanningandControlPlanning–

involvesdevelopingobjectivesandpreparingvariousbudgetstoachievethoseobjectives.Control

–

involvesthestepstakenbymanagementtoincreasethelikelihoodthattheobjectivessetdownwhileplanningareattainedandthatallpartsoftheorganizationareworkingtogethertowardthatgoal.PlanningandControlPlanning–AdvantagesofBudgetingAdvantagesDefinegoalsandobjectivesUncoverpotentialbottlenecksCoordinateactivitiesCommunicateplansMeansofallocatingresourcesAdvantagesofBudgetingAdvantaResponsibilityAccounting

Managersshouldbeheldresponsibleforthoseitems-andonlythoseitems-thattheycanactuallycontrol

toasignificantextent.ResponsibilityAccountingManChoosingtheBudgetPeriodOperatingBudget2011201220132014Operatingbudgetsordinarilycoveraone-yearperiodcorrespondingtoacompany’sfiscalyear.Manycompaniesdividetheirannualbudgetintofourquarters.Acontinuousbudgetisa

12-monthbudgetthatrolls

forwardonemonth(orquarter)

asthecurrentmonth(orquarter)

iscompleted.ChoosingtheBudgetPeriodOperLearningObjective2UnderstandBasicBudgetingTermsandtheBehavioralAspectsofBudgeting.LearningObjective2UnderstandBot