ManagerialAccountingStudent财务管理经管.ppt

FlexibleBudgetsandPerformanceAnalysis,Chapter10,LearningObjective10-1,Prepareaflexiblebudget.,CharacteristicsofFlexibleBudgets,Planningbudgetsarepreparedforasingle,plannedlevelofactivity.,Performanceevaluationisdifficultwhenactualactivitydiffersfromtheplannedlevelofactivity.,LetslookatLarrysLawnService.,CharacteristicsofFlexibleBudgets,LarrysLawnServiceprovideslawncareinaplannedcommunitywherealllawnsareapproximatelythesamesize.AttheendofMay,LarrypreparedhisJunebudgetbasedonmowing500lawns.Sinceallofthelawnsaresimilarinsize,Larryfeltthatthenumberoflawnsmowedinamonthwouldbethebestwaytomeasureoverallactivityforhisbusiness.,DeficienciesoftheStaticPlanningBudget,DeficienciesoftheStaticPlanningBudget,LarrysPlanningBudget,DeficienciesoftheStaticPlanningBudget,LarrysActualResults,DeficienciesoftheStaticPlanningBudget,LarrysActualResultsComparedwiththePlanningBudget,DeficienciesoftheStaticPlanningBudget,LarrysActualResultsComparedwiththePlanningBudget,F=Favorablevariancethatoccurswhenactualcostsarelessthanbudgetedcosts.,U=Unfavorablevariancethatoccurswhenactualcostsaregreaterthanbudgetedcosts.,F=Favorablevariancethatoccurswhenactualrevenueisgreaterthanbudgetedrevenue.,DeficienciesoftheStaticPlanningBudget,LarrysActualResultsComparedwiththePlanningBudget,Sincethesevariancesareunfavorable,hasLarrydoneapoorjobcontrollingcosts?,Sincethesevariancesarefavorable,hasLarrydoneagoodjobcontrollingcosts?,DeficienciesoftheStaticPlanningBudget,Therelevantquestionis.“Howmuchofthecostvariancesareduetohigheractivityandhowmuchareduetocostcontrol?”Toanswerthequestion,wemustthebudgettotheactuallevelofactivity.,DeficienciesoftheStaticPlanningBudget,HowaFlexibleBudgetWorks,Toabudget,weneedtoknowthat:Totalvariablecostschangeindirectproportiontochangesinactivity.Totalfixedcostsremainunchangedwithintherelevantrange.,Fixed,Variable,LetsprepareabudgetforLarrysLawnService.,HowaFlexibleBudgetWorks,PreparingaFlexibleBudget,LarrysFlexibleBudget,QuickCheck,Whatshouldthetotalwagesandsalariescostbeinaflexiblebudgetfor600lawns?a.$18,000.b.$20,000.c.$23,000.d.$25,000.,LearningObjective10-2,Prepareareportshowingactivityvariances.,ActivityVariances,Planningbudgetrevenuesandexpenses,Flexiblebudgetrevenuesandexpenses,Thedifferencesbetweenthebudgetamountsarecalledactivityvariances.,LetsusebudgetingconceptstocomputeactivityvariancesforLarrysLawnService.,ActivityVariances,ActivityVariances,LarrysFlexibleBudgetComparedwiththePlanningBudget,LarrysFlexibleBudgetComparedwiththePlanningBudget,ActivityVariances,Activityandrevenueincreaseby10percent,butnetoperatingincomeincreasesbymorethan10percentduetothepresenceoffixedcosts.,LearningObjective10-3,Prepareareportshowingrevenueandspendingvariances.,RevenueandSpendingVariances,Flexiblebudgetrevenue,Actualrevenue,Thedifferenceisarevenuevariance.,Flexiblebudgetcost,Actualcost,Thedifferenceisaspendingvariance.,RevenueandSpendingVariances,LetsusebudgetingconceptstocomputerevenueandspendingvariancesforLarrysLawnService.,RevenueandSpendingVariances,LarrysFlexibleBudgetComparedwiththeActualResults,LarrysFlexibleBudgetComparedwiththeActualResults,RevenueandSpendingVariances,Spendingvariances,LearningObjective10-4,Prepareaperformancereportthatcombinesactivityvariancesandrevenueandspendingvariances.,Now,letsusebudgetingconceptstocombinetherevenueandspendingvariancesreportsforLarrysLawnService.,APerformanceReportCombiningActivityandRevenueandSpendingVariances,APerformanceReportCombiningActivityandRevenueandSpendingVariances,APerformanceReportCombiningActivityandRevenueandSpendingVariances,50lawns$75perlawn,50lawns$30perlawn,$43,000actual-$41,250budget,APerformanceReportCombiningActivityandRevenueandSpendingVariances,PerformanceReportsinNon-ProfitOrganizations,Non-profitorganizationsmayreceivefundingfromsourcesotherthanthesaleofgoodsandservices,sorevenuesmayconsistofbothfixedandvariableelements.,Universities,Tuitionandfees,Donations,Statefunding,Endowments,PerformanceReportsinCostCenters,Performancereportsareoftenpreparedforcostcenters.Thesereportsshouldbepreparedusingthesameprinciplesdiscussedsofar,exceptforthefactthatthesereportswillnotcontainrevenueornetoperatingincomevariances.,LearningObjective10-5,Prepareaflexiblebudgetwithmorethanonecostdriver.,Morethanonecostdrivermaybeneededtoadequatelyexplainallofthecostsinanorganization.,Thecostformulasusedtoprepareaflexiblebudgetcanbeadjustedtorecognizemultiplecostdrivers.,FlexibleBudgetswithMultipleCostDrivers,Becauseofthelargeunfavorablewagesandsalariesspendingvariance,Larrydecidedtoaddanadditionalcostdriverforwagesandsalaries.Thevarianceisdueprimarilytothenumberofhoursrequiredfortheadditionaledgingandtrimming.SoLarryestimatestheadditionalhoursandbuildsthosehoursintobothhisrevenueandexpensebudgetformulas.,FlexibleBudgetswithMultipleCostDrivers,FlexibleBudgetswithMultipleCostDrivers,LarrysBudgetBasedonMorethanOneCostDriver,LearningObjective10-6,Understandcommonerrorsmadeinpreparingperformancereportsbasedonbudgetsandactualresults.,SomeCommonErrors,Themostcommonerrorswhenpreparingperformancereportsaretoimp