ch12slides.pptVIP

Budgeting for Planning and Control Learning Objectives Define budgeting预算 and discuss its role in planning, control, and decision making. Learning Objectives (continued) Define and prepare the master budget主预算, identify its major components, and explain the interrelationships of its various components. Learning Objectives (continued) Describe flexible budgeting 弹性预算法and identify the features that a budgetary system should have to encourage managers to engage in goal-congruent目标一致 behaviour. Describe activity-based budgeting. Definition and Role of Budgeting Purposes of Budgeting It forces managers to plan. It provides resource information that can be used to improve decision making. It provides a standard for performance evaluation. It improves communication and coordination. Two Dimensions of Budgeting Master Budget A master budget can be divided into operating and financial budgets. Operating budgets 经营预算describe the income-generating activities of a firm: sales, production, and finished goods inventories. Financial budgets 财务预算detail the inflows and outflows of cash and the overall financial position. The Operating Budget Sales budget销售预算 Production budget生产预算 Direct materials purchases budget直接材料采购预算 Direct labour budget直接人工预算 Overhead budget制造费用预算 Selling and administrative expenses budget销售与管理费用预算 Ending finished goods inventory budget期末产成品存货预算 Cost of goods sold budget销货成本预算 Sales Budget (Schedule 1) ______________Quarter____________ 1 2 3 4 Year Units 2,000 6,000 6,000 2,000 16,000 Unit selling price x $0.70 x $0.70 x $0.80 x $0.80 x $0.75 $1,400 $4,200 $4,800 $1,600 $12,000 ===== ===== ===== ===== ====== Production Budget (Schedule 2) _____________Quarter____________ 1 2 3 4 Year Sales (Schedule 1) 2,000 6,000 6,000 2,000 16,000 Desired ending inventory 500