BudgetaryControlandResponsibilityAccounting幻灯片.pptxVIP

24Budgetary Control and Responsibility AccountingLearning ObjectivesDescribe budgetary control and static budget reports.1Prepare flexible budget reports.2Apply responsibility accounting to cost and profit centers.3Evaluate performance in investment centers.4Describe budgetary control and static budget reports.LEARNINGOBJECTIVE1The use of budgets in controlling operations is known as budgetary control.Takes place by means of budget reports which compare actual results with planned objectives.Provides management with feedback on operations.Budget reports can be prepared as frequently as needed.Management analyzes differences between actual and planned results and determines causes.LO 1Budgetary ControlBudgetary control involves the following activities.Illustration 24-1LO 1Budgetary ControlWorks best when a company has a formalized reporting system which:Identifies the name of the budget report.States the frequency of the report.Specifies the purpose of the report.Indicates the primary recipient(s) of the report.LO 1Budgetary ControlPartial budgetary control system for manufacturing company.Illustration 24-2LO 1Budgetary ControlQuestionBudgetary control involves all but one of the following:Modifying future plans.Analyzing differences. Using static budgets.Determining differences between actual and planned results. LO 1Static Budget ReportsA Static budget is a projection of budget data at one level of activity.When used in budgetary control, each budget included in the master budget is considered to be static.Ignores data for different levels of activity.Compares actual results with budget data at the activity level used in the master budget.LO 1Static Budget ReportsIllustration: Budget and actual sales data for the Rightride product in the first and second quarters of 2017 are as follows.Illustration 24-3LO 1Static Budget ReportsIllustration: Sales budget report for Hayes Company’s first quarter. Illustration 24-3Illustration 24-4LO 1DO IT!1Static Budget ReportLaw