《Survey of accounting 2th会计学 Carl S.Warren》ch13.pptVIP

Establishing specific future goals Executing plans to achieve the goals Comparing actual results to the goals Setting budget goals too tightly Setting budget goals too loosely Setting conflicting budget goals A budget that does not reflect potential changes in volume or activity level Simple—all expenses are budgeted as fixed costs Does not reflect changes in revenues and expenses that occur as volumes change Service organizations or administrative departments of retailers and manufacturers A budget that shows revenues and expenses for a variety of volumes or activity levels Provides information needed to analyze the impact of volume changes on actual operating results Requires greater research into costs—must differentiate fixed and variable costs Operational departments of retailers and manufacturers whose costs change with sales and production Variable cost: Direct labor ($5 per unit) $40,000 $45,000 $50,000 Electricity ($0.5 per unit) 4,000 4,500 5,000 Total variable cost $44,000 $49,500 $55,000 Variable cost: Direct labor ($5 per unit) $40,000 $45,000 $50,000 Electricity ($0.5 per unit) 4,000 4,500 5,000 Total variable cost $44,000 $49,500 $55,000 Fixed cost: Electric power $ 1,000 $ 1,000 $ 1,000 Supervisor salaries 15,000 15,000 15,000 Total fixed cost $16,000 $16,000 $16,000 Variable cost: Direct labor ($5 per unit) $40,000 $45,000 $50,000 Electricity ($0.5 per unit) 4,000 4,500 5,000 Total variable cost $44,000 $49,500 $55,000 Fixed cost: Electric power $ 1,000 $ 1,000 $ 1,000 Supervisor salaries 15,000 15,000 15,000 Total fixed cost $16,000 $16,000 $16,000 Total department costs $60,000 $65,500 $71,000 Expected units of sales + Desired units in ending inventory - Estimated units in beginning inventory Total units to be produced Materials needed for production + Desired ending materials inventory - Estimated beginning materials inventory Direct materials to be purchased Wallet: East 287,000 $12.00 $3,444,000 We