暨南大学管理学院成本与管理会计课件 Chapter09.ppt

Chapter Nine Learning Objective 1 The Basic Framework of Budgeting Planning and Control Planning – involves developing objectives and preparing various budgets to achieve these objectives. Control – involves the steps taken by management that attempt to ensure the objectives are attained. Advantages of Budgeting Responsibility Accounting Choosing the Budget Period Self-Imposed Budget Advantages of Self-Imposed Budgets Self-Imposed Budgets Human Factors in Budgeting The success of budgeting depends upon three important factors: Top management must be enthusiastic and committed to the budget process. Top management must not use the budget to pressure employees or blame them when something goes wrong. Highly achievable budget targets are usually preferred when managers are rewarded based on meeting budget targets. The Budget Committee A standing committee responsible for overall policy matters relating to the budget coordinating the preparation of the budget The Master Budget: An Overview Learning Objective 2 Budgeting Example Royal Company is preparing budgets for the quarter ending June 30. Budgeted sales for the next five months are: April 20,000 units May 50,000 units June 30,000 units July 25,000 units August 15,000 units. The selling price is $10 per unit. The Sales Budget Expected Cash Collections All sales are on account. Royal’s collection pattern is: 70% collected in the month of sale, 25% collected in the month following sale, 5% uncollectible. The March 31 accounts receivable balance of $30,000 will be collected in full. Expected Cash Collections Expected Cash Collections Expected Cash Collections Quick Check ? What will be the total cash collections for the quarter? a. $700,000 b. $220,000 c. $190,000 d. $905,000 Quick Check ? What will be the total cash collections for the quarter? a. $700,000 b. $220,000 c. $190,000 d. $905,000 Expected Cash Collections Learning Objective 3 The Production Budget The Production Budget The management at