管理会计c-h07.pptVIP

Chapter 7 The Master Budget Objective 1 Advantages of Budgets Advantages of Budgets Types of Budgets Strategic Plan The most forward-looking budget is the strategic plan, which sets the overall goals and objectives of the organization. Long-Range Plan The strategic plan leads to long-range planning, which produces forecasted financial statements for five- to ten-year periods. Capital Budget Master Budget… Master Budget Objective 2 Master Budget Components of Master Budget Components of Master Budget Objective 3 Operating Budget Cash Collections It is easiest to prepare budgeted cash collections at the same time as the sales budget. Cash collections include the current month’s cash sales plus the previous month’s credit sales. Purchases Budget Disbursements for Purchases For example, 50% of the current month’s purchases and 50% of the previous month’s purchases may be included. The total disbursements are then used in preparing the cash budget. Operating Expense Budget The budgeting of operating expenses depends on several factors. Month-to-month changes in sales volume and other cost-driver activities directly influence many operating expenses. Operating Expense Budget Expenses driven by sales volume include sales commissions and many delivery expenses. Operating Expense Budget Other expenses are not influenced by sales or other cost-driver activity and are regarded as fixed, within appropriate relevant ranges. Operating Expense Disbursements Disbursements for operating expenses are based on the operating expense budget. Operating Expense Disbursements For example, 50% of last month’s and this month’s wages and commissions plus miscellaneous and rent expenses may be included. The total of these disbursements is then used in preparing the cash budget. Budgeted Income Statement Budgeted Income Statement Objective 4 Cash Budget Cash Budget Cash Budget Cash Budget Cash Budget Cash Budget Cash Budget Budgeted Balance Sheet Objective 5 Sales Forecast A sales forecast is a