9ManagerialAccountingStudent_财务管理_经管.pptx

Profit PlanningChapter 9Learning Objective 9-1Understand why organizations budget and the processes they use to create budgets.The Basic Framework of BudgetingA budget is a detailed quantitative plan for acquiring and using financial and other resources over a specified forthcoming time period.The act of preparing a budget is called budgeting.The use of budgets to control an organization’s activities is known as budgetary control.Planning and ControlPlanning – involves developing objectives and preparing various budgets to achieve those objectives.Control – involves the steps taken by management to increase the likelihood that the objectives set down while planning are attained and that all parts of the organization are working together toward that goal.Define goalsand objectivesCommunicateplansThink about andplan for the futureCoordinateactivitiesMeans of allocatingresourcesUncover potentialbottlenecksAdvantages of BudgetingAdvantagesResponsibility Accounting Managers should be held responsible for those items - and only those items - that they can actually control to a significant extent.Choosing the Budget PeriodOperating Budget2011201220132014Operating budgets ordinarilycover a one-year periodcorresponding to a company’s fiscal year. Many companies divide their annual budget into four quarters.A continuous budget is a12-month budget that rollsforward one month (or quarter)as the current month (or quarter) is completed.Self-Imposed BudgetA self-imposed budget or participative budget is a budget that is prepared with the full cooperation and participation of managers at all levels.Advantages of Self-Imposed BudgetsIndividuals at all levels of the organization are viewed as members of the team whose judgments are valued by top management.Budget estimates prepared by front-line managers are often more accurate than estimates prepared by top managers.Motivation is generally higher when individuals participate in setting their own goals than when t