財務(wù)管理經(jīng)管課件

財務(wù)管理經(jīng)管2023/7/18財務(wù)管理經(jīng)管LearningObjective10-1Prepareaflexiblebudget.財務(wù)管理經(jīng)管CharacteristicsofFlexibleBudgets

Planningbudgets

arepreparedfor

asingle,planned

level

ofactivity.Performanceevaluationisdifficultwhenactualactivitydiffersfromtheplannedlevelofactivity.Hmm!Comparing

staticplanningbudgets

withactualcosts

islikecomparing

applesandoranges.財務(wù)管理經(jīng)管Improveperformanceevaluation.Maybepreparedforanyactivity

levelintherelevantrange.Showcoststhatshouldhavebeen

incurredattheactuallevelof

activity,enabling“applestoapples”

costcomparisons.Helpmanagerscontrolcosts.Let’slookatLarry’sLawnService.CharacteristicsofFlexibleBudgets財務(wù)管理經(jīng)管Larry’sLawnServiceprovideslawncareinaplanned

communitywherealllawnsareapproximatelythesamesize.

AttheendofMay,LarrypreparedhisJunebudgetbasedon

mowing500lawns.Sinceallofthelawnsaresimilarinsize,

Larryfeltthatthenumberoflawnsmowedinamonthwould

bethebestwaytomeasureoverallactivityforhisbusiness.

Larry’sBudgetDeficienciesoftheStaticPlanningBudget財務(wù)管理經(jīng)管DeficienciesoftheStaticPlanningBudgetLarry’sPlanningBudget財務(wù)管理經(jīng)管DeficienciesoftheStaticPlanningBudgetLarry’sActualResults財務(wù)管理經(jīng)管DeficienciesoftheStaticPlanningBudgetLarry’sActualResultsComparedwiththePlanningBudget財務(wù)管理經(jīng)管DeficienciesoftheStaticPlanningBudgetLarry’sActualResultsComparedwiththePlanningBudgetF=Favorablevariancethatoccurswhenactualcostsarelessthanbudgetedcosts.U=Unfavorablevariancethatoccurswhenactualcostsaregreaterthanbudgetedcosts.F=Favorablevariancethatoccurswhenactualrevenueisgreaterthanbudgetedrevenue.財務(wù)管理經(jīng)管DeficienciesoftheStaticPlanningBudgetLarry’sActualResultsComparedwiththePlanningBudgetSincethesevariancesareunfavorable,hasLarrydoneapoorjobcontrollingcosts?Sincethesevariancesare

favorable,hasLarrydoneagoodjobcontrollingcosts?財務(wù)管理經(jīng)管Idon’tthinkI

cananswerthe

questionsusing

astaticbudget.Actualactivityisabove

plannedactivity.So,shouldn’tthevariable

costsbehigherifactual

activityishigher?DeficienciesoftheStaticPlanningBudget財務(wù)管理經(jīng)管Therelevantquestionis...“Howmuchofthecostvariancesareduetohigheractivityandhowmuchareduetocostcontrol?”Toanswerthequestion,

wemust

thebudgettothe

actuallevelofactivity.DeficienciesoftheStaticPlanningBudget財務(wù)管理經(jīng)管HowaFlexibleBudgetWorks

Toabudget,weneedtoknowthat:Totalvariablecosts

change

indirectproportionto

changesinactivity.Totalfixed

costsremain

unchanged

withinthe

relevantrange.FixedVariable財務(wù)管理經(jīng)管Let’spreparea

budget

forLarry’sLawnService.HowaFlexibleBudgetWorks財務(wù)管理經(jīng)管PreparingaFlexibleBudgetLarry’sFlexibleBudget財務(wù)管理經(jīng)管QuickCheck Whatshouldthetotalwagesandsalariescostbeinaflexiblebudgetfor600lawns?a.$18,000.b.$20,000.c.$23,000.d.$25,000.財務(wù)管理經(jīng)管LearningObjective10-2Prepareareportshowingactivityvariances.財務(wù)管理經(jīng)管ActivityVariancesPlanningbudgetrevenues

andexpensesFlexiblebudgetrevenues

andexpensesThedifferencesbetweenthebudgetamountsarecalledactivityvariances.財務(wù)管理經(jīng)管Let’susebudgetingconceptstocomputeactivityvariancesforLarry’sLawnService.ActivityVariances財務(wù)管理經(jīng)管ActivityVariancesLarry’sFlexibleBudgetComparedwiththePlanningBudget財務(wù)管理經(jīng)管Larry’sFlexibleBudgetComparedwiththePlanningBudgetActivityVariancesActivityandrevenueincreaseby10percent,butnetoperatingincomeincreasesbymorethan10percentduetothepresenceoffixedcosts.財務(wù)管理經(jīng)管LearningObjective10-3Prepareareportshowingrevenueandspendingvariances.財務(wù)管理經(jīng)管RevenueandSpendingVariancesFlexiblebudgetrevenueActualrevenueThedifferenceisarevenuevariance.FlexiblebudgetcostActualcostThedifferenceisaspendingvariance.財務(wù)管理經(jīng)管RevenueandSpendingVariancesLet’susebudgetingconceptstocomputerevenueandspendingvariancesforLarry’sLawnService.財務(wù)管理經(jīng)管RevenueandSpendingVariancesLarry’sFlexibleBudgetComparedwiththeActualResults$1,750favorable

revenuevariance財務(wù)管理經(jīng)管Larry’sFlexibleBudgetComparedwiththeActualResultsRevenueandSpendingVariancesSpending

variances財務(wù)管理經(jīng)管LearningObjective10-4Prepareaperformancereportthatcombinesactivityvariancesandrevenueandspendingvariances.財務(wù)管理經(jīng)管Now,let’susebudgetingconceptstocombinetherevenueandspendingvariancesreportsforLarry’sLawnService.APerformanceReportCombiningActivityandRevenueandSpendingVariances財務(wù)管理經(jīng)管APerformanceReportCombiningActivityandRevenueandSpendingVariances財務(wù)管理經(jīng)管APerformanceReportCombiningActivityandRevenueandSpendingVariances50lawns×$75perlawn50lawns×$30perlawn財務(wù)管理經(jīng)管$43,000actual-$41,250budgetAPerformanceReportCombiningActivityandRevenueandSpendingVariances財務(wù)管理經(jīng)管PerformanceReportsinNon-ProfitOrganizationsNon-profitorganizationsmayreceivefundingfromsourcesotherthanthesaleofgoodsandservices,sorevenuesmayconsistofbothfixedandvariableelements.UniversitiesTuitionandfeesDonationsStatefundingEndowments財務(wù)管理經(jīng)管PerformanceReportsinCostCentersPerformancereportsareoftenpreparedforcostcenters.Thesereportsshouldbepreparedusingthesameprinciplesdiscussedsofar,exceptforthefactthatthesereportswillnotcontainrevenueornetoperatingincomevariances.財務(wù)管理經(jīng)管LearningObjective10-5Prepareaflexiblebudgetwithmorethanonecostdriver.財務(wù)管理經(jīng)管Morethanonecost

drivermaybeneededto

adequatelyexplainallof

thecostsinanorganization.Thecostformulasused

toprepareaflexible

budgetcanbeadjusted

torecognizemultiple

costdrivers.FlexibleBudgetswithMultipleCostDrivers財務(wù)管理經(jīng)管Becauseofthelargeunfavorablewagesandsalariesspending

variance,Larrydecidedtoaddanadditionalcostdriverforwagesandsalaries.Thevarianceisdueprimarilytothenumberofhoursrequiredfortheadditionaledgingandtrimming.SoLarryestimatestheadditionalhoursandbuildsthosehoursintobothhisrevenueandexpensebudgetformulas.

Larry’sNewBudgetFlexibleBudgetswithMultipleCostDrivers財務(wù)管