ManagerialAccountingStudent财务管理经管(4).ppt

ProfitPlanning,Chapter9,LearningObjective9-1,Understandwhyorganizationsbudgetandtheprocessestheyusetocreatebudgets.,TheBasicFrameworkofBudgeting,Abudgetisadetailedquantitativeplanforacquiringandusingfinancialandotherresourcesoveraspecifiedforthcomingtimeperiod.,Theactofpreparingabudgetiscalledbudgeting.Theuseofbudgetstocontrolanorganizationsactivitiesisknownasbudgetarycontrol.,PlanningandControl,Planninginvolvesdevelopingobjectivesandpreparingvariousbudgetstoachievethoseobjectives.,Controlinvolvesthestepstakenbymanagementtoincreasethelikelihoodthattheobjectivessetdownwhileplanningareattainedandthatallpartsoftheorganizationareworkingtogethertowardthatgoal.,AdvantagesofBudgeting,Advantages,ResponsibilityAccounting,Managersshouldbeheldresponsibleforthoseitems-andonlythoseitems-thattheycanactuallycontroltoasignificantextent.,ChoosingtheBudgetPeriod,OperatingBudget,2011,2012,2013,2014,Operatingbudgetsordinarilycoveraone-yearperiodcorrespondingtoacompanysfiscalyear.Manycompaniesdividetheirannualbudgetintofourquarters.,Acontinuousbudgetisa12-monthbudgetthatrollsforwardonemonth(orquarter)asthecurrentmonth(orquarter)iscompleted.,Self-ImposedBudget,Aself-imposedbudgetorparticipativebudgetisabudgetthatispreparedwiththefullcooperationandparticipationofmanagersatalllevels.,AdvantagesofSelf-ImposedBudgets,Individualsatalllevelsoftheorganizationareviewedasmembersoftheteamwhosejudgmentsarevaluedbytopmanagement.Budgetestimatespreparedbyfront-linemanagersareoftenmoreaccuratethanestimatespreparedbytopmanagers.Motivationisgenerallyhigherwhenindividualsparticipateinsettingtheirowngoalsthanwhenthegoalsareimposedfromabove.Amanagerwhoisnotabletomeetabudgetimposedfromabovecanclaimthatitwasunrealistic.Self-imposedbudgetseliminatethisexcuse.,Self-ImposedBudgets,Self-imposedbudgetsshouldbereviewedbyhigherlevelsofmanagementtoprevent“budgetaryslack.”Mostcompaniesissuebroadguidelinesintermsofoverallprofitsorsales.Lowerlevelmanagersaredirectedtopreparebudgetsthatmeetthosetargets.,HumanFactorsinBudgeting,Thesuccessofabudgetprogramdependsonthreeimportantfactors:Topmanagementmustbeenthusiasticandcommittedtothebudgetprocess.Topmanagementmustnotusethebudgettopressureemployeesorblamethemwhensomethinggoeswrong.Highlyachievablebudgettargetsareusuallypreferredwhenmanagersarerewardedbasedonmeetingbudgettargets.,TheBudgetCommittee,Astandingcommitteeresponsibleforoverallpolicymattersrelatingtothebudgetcoordinatingthepreparationofthebudgetresolvingdisputesrelatedtothebudgetapprovingthefinalbudget,TheMasterBudget:AnOverview,Productionbudget,Sellingandadministrativebudget,Directmaterialsbudget,Manufacturingoverheadbudget,Directlaborbudget,CashBudget,Salesbudget,Endinginventorybudget,Budgetedbalancesheet,Budgetedincomestatement,LearningObjective9-2,Prepareasalesbudget,includingascheduleofexpectedcashcollections.,BudgetingExample,RoyalCompanyispreparingbudgetsforthequarterendingJune30th.Budgetedsalesforthenextfivemonthsare:April20,000unitsMay50,000unitsJune30,000unitsJuly25,000unitsAugust15,000unitsThesellingpriceis$10perunit.,TheSalesBudget,TheindividualmonthsofApril,May,andJunearesummedtoobtainthetotalbudgetedsalesinunitsanddollarsforthequarterendedJune30th,ExpectedCashCollections,Allsalesareonaccount.Royalscollectionpatternis:70%collectedinthemonthofsale,25%collectedinthemonthfollowingsale,5%uncollectible.InApril,theMarch31staccountsreceivablebalanceof$30,000willbecollectedinfull.,ExpectedCashCollections,ExpectedCashCollections,ExpectedCashCollections,QuickCheck,Whatwillbethetotalcashcollectionsforthequarter?a.$700,000b.$220,000c.$190,000d.$905,000,ExpectedCashCollections,LearningObjective9-3,Prepareaproductionbudget.,TheProductionBudget,ProductionBudget,SalesBudgetandExpectedCashCollections,Completed,Theproductionbudgetmustbeadequatetomeetbudgetedsalesandtoprovideforthedesiredendinginventory.,TheProductionBudget,ThemanagementatRoyalCompanywantsendinginventorytobeequalto20%ofthefollowingmonthsbudgetedsalesinunits.OnMarch31st,4,000unitswereonhand.Letspreparetheproductionbudget.,TheProductionBudget,TheProductionBudget,QuickCheck,WhatistherequiredproductionforMay?a.56,000unitsb.46,000unitsc.62,000unitsd.52,000units,TheProductionBudget,TheProductionBudget,LearningObjective9-4,Prepareadirectmaterialsbudget,includingascheduleofexpectedcashdisbursementsforpurchasesofmaterials.,TheDirectMaterialsBudget,AtRoyalCompany,fivepoundsofmaterialarerequiredperunitofproduct.Managementwantsmaterialsonhandattheendofeachmonthequalto10%ofthefollowingmonthsproduction.OnMarch31,13,000poundsofmaterialareonhand.Materialcostis$0.40perpound.Letspreparethedirectmaterialsbudget.,TheDirectMaterialsBudget,TheDirectMaterialsBudget,TheDirectMaterialsBudget,CalculatethematerialstobepurchasedinMay.,QuickCheck,HowmuchmaterialsshouldbepurchasedinMay?a.221,500poundsb.240,000poundsc.230,000poundsd.211,500pounds,TheDirectMaterialsBudget,TheDirectMaterialsBudget,ExpectedCashDisbursementforMaterials,Royalpays$0.40perpoundforitsmaterials.One-halfofamonthspurchasesispaidforinthemonthofpurchase;theotherhalfispaidinthefollowingmonth.TheMarch31accountspayablebalanceis$12,000.Letscalculateexpectedcashdisbursements.,ExpectedCashDisbursementforMaterials,ExpectedCashDisbursementforMaterials,Computetheexpectedcashdisbursementsformaterialsforthequarter.,QuickCheck,Whatarethetotalcashdisbursementsforthequarter?a.$185,000b.$68,000c.$56,000d.$201,400,ExpectedCashDisbursementforMaterials,LearningObjective9-5,Prepareadirectlaborbudget.,TheDirectLaborBudget,AtRoyal,eachunitofproductrequires0.05hours(3minutes)ofdirectlabor.TheCompanyhasa“nolayoff”policysoallemployeeswillbepaidfor40hoursofworkeachweek.ForpurposesofourillustrationassumethatRoyalhasa“nolayoff”policy,workersarepaidattherateof$10perhourregardlessofthehoursworked.Forthenextthreemonths,thedirectlaborworkforcewillbepaidforaminimumof1,500hourspermonth.Letspreparethedirectlaborbudget.,TheDirectLaborBudget,TheDirectLaborBudget,TheDirectLaborBudget,TheDirectLaborBudget,QuickCheck,Whatwouldbethetotaldirectlaborcostforthequarterifthecompanyfollowsitsnolay-offpolicy,butpays$15(time-and-a-half)foreveryhourworkedinexcessof1,500hoursinamonth?a.$79,500b.$64,500c.$61,000d.$57,000,LearningObjective9-6,Prepareamanufacturingoverheadbudget.,ManufacturingOverheadBudget,AtRoyal,manufacturingoverheadisappliedtounitsofproductonthebasisofdirectlaborhours.Thevariablemanufacturingoverheadrateis$20perdirectlaborhour.Fixedmanufacturingoverheadis$50,000permonth,whichincludes$20,000ofnoncashcosts(primarilydepreciationofplantassets).Letspreparethemanufacturingoverheadbudget.,ManufacturingOverheadBudget,ManufacturingOverheadBudget,ManufacturingOverheadBudget,EndingFinishedGoodsInventoryBudget,Directmaterialsbudgetandinformation.,EndingFinishedGoodsInventoryBudget,Directlaborbudget.,EndingFinishedGoodsInventoryBudget,EndingFinishedGoodsInventoryBudget,ProductionBudget.,LearningObjective9-7,Prepareasellingandadministrativeexpensebudget.,SellingandAdministrativeExpenseBudget,AtRoyal,thesellingandadministrativeexpensebudgetisdividedintovariableandfixedcomponents.Thevariablesellingandadministrativeexpensesare$0.50perunitsold.Fixedsellingandadministrativeexpensesare$70,000permonth.Thefixedsellingandadministrativeexpensesinclude$10,000incostsprimarilydepreciationthatarenotcashoutflowsofthecurrentmonth.Letspreparethecompanyssellingandadministrativeexpensebudget.,SellingandAdministrativeExpenseBudget,Calculatethesellingandadministrativecashexpensesforthequarter.,QuickCheck,Whatarethetotalcashdisbursementsforsellingandadministrativeexpensesforthequarter?a.$180,000b.$230,000c.$110,000d.$70,000,SellingAdministrativeExpenseBudget,LearningObjective9-8,Prepareacashbudget.,FormatoftheCashBudget,Thecashbudgetisdividedintofoursections:Cashreceiptssectionlistsallcashinflowsexcludingcashreceivedfromfinancing;Cashdisbursementssectionconsistsofallcashpaymentsexcludingrepaymentsofprincipalandinterest;Cashexcessordeficiencysectiondeterminesifthecompanywillneedtoborrowmoneyorifitwillbeabletorepayfundspreviouslyborrowed;andFinancingsectiondetailstheborrowingsandrepaymentsprojectedtotakeplaceduringthebudgetperiod.,TheCashBudget,AssumethefollowinginformationforRoyal:Maintainsa16%openlineofcreditfor$75,000Maintainsaminimumcashbalanceof$30,000Borrowsonthefirstdayofthemonthandrepa