Flexible Budgets andVariance Analysis弹性预算.PPTVIP

Flexible Budgets andVariance Analysis Chapter 8 With over 28,000 locations, how does McDonald’s maintain cost and quality control? It uses standards, budgets and variance analysis The material standard for a hamburger is the same in every location Material variances are computed for every ingredient by comparing what was actually used with what should have been used for the number of hamburgers sold each day What are these standards? It also has nonfinancial standards such as average drive-through time Knowing what went wrong and what went right helps managers plan Learning Objective 1 Distinguish between flexible budgets and master (static) budgets. Static Budgets Master Budget Variance: Sales Master Budget Variance: Expenses Objective 2 Use flexible-budget formulas to construct a flexible budget based on the volume of sales. Flexible Budget Flexible Budget Formulas Objective 3 Prepare an activity-based flexible budget. Activity-Based Flexible Budget Objective 4 Explain the performance evaluation relationship between master (static) budgets and flexible budgets. Evaluation of Financial Performance Evaluation of Financial Performance Evaluation of Financial Performance Evaluation of Financial Performance Evaluation of Financial Performance Objective 5 Compute flexible-budget variances and sales-activity variances. Isolating the Causes of Variances Isolating the Causes of Variances Flexible-Budget Variances Sales-Activity Variances Sales-Activity Variances Objective 6 Compute and interpret price and usage variances for inputs based on cost-driver activity. Setting Standards Perfection Standards... Currently Attainable Standards... Trade-Offs Among Variances When to Investigate Variances Comparison with Prior Periods Flexible-Budget Variance in Detail Variances from Material and Labor Standards Variances from Material and Labor Standards Variances from Material and Labor Standards Variances from Material and Labor Standards Variances from Material and Labor Standar