管理会计（英文版）课后习题答案（高等教育出版社）

233233233 管理会计 高等教育出版社 管理会计 高等教育出版社 于增彪 清华大学 于增彪 清华大学 改编改编 余绪缨 厦门大学 余绪缨 厦门大学 审校审校 CHAPTER 8 FUNCTIONAL AND ACTIVITY BASED BUDGETING QUESTIONS FOR WRITING AND DISCUSSION 1 Budgets are the quantitative expressions of plans Budgets are used to translate the goals and strategies of an organization into operational terms 2 Control is the process of setting standards receiving feedback on actual performance and taking corrective action whenever actual performance deviates from planned performance Budgets are standards and they are compared with actual costs and revenues to provide feedback 3 The planning and control functions of budgeting can benefit all organizations regardless of size All organizations need to determine what their goals are and how best to obtain those goals This is the planning function of budgeting In addition organizations can compare what actually happens with what was planned to see if the plans are unfolding as anticipated This is the control function of budgeting 4 Budgeting forces managers to plan provides resource information for decision making sets benchmarks for control and evaluation and improves the functions of communication and coordination 5 A master budget is the collection of all individual area and activity budgets Operating budgets are concerned with the income generating activities of a firm Financial budgets are concerned with the inflows and outflows of cash and with planned capital expenditures 6 The sales forecast is a critical input for building the sales budget However it is not necessarily equivalent to the sales budget Upon receiving the sales forecast management may decide that the firm can do better than the forecast indicates Consequently actions may be taken to increase the sales potential for the coming year e g increasing advertising This adjusted forecast then becomes the sales budget 7 Yes All budgets are founded on the sales budget Before a production budget can be created it must have the planned sales The manufacturing budgets in turn depend on the production budget The same is true for the financial budgets since sales is a critical input for budgets in that category 8 For a merchandising firm the production budget is replaced by a merchandise purchases budget Merchandising firms also lack direct materials and direct labor budgets All other budgets are essentially the same For a service firm for profit the sales budget doubles as the production budget and there is no finished goods inventory budget The rest of the budgets have counterparts 9 A static budget is for a particular level of activity A flexible budget is one that can be established for any level of activity For 234234234 performance reporting it is necessary to compare the actual costs for the actual level of activity with the budgeted costs for the actual level of activity A flexible budget provides the means to compute the budgeted costs for the actual level of activity after the fact 10 A flexible budget is based on a simple formula Y F VX which requires knowledge of both fixed and variable components 11 Goal congruence is important because it means that the employees of an organization are working toward the goals of that organization 12 Frequent feedback is important so that corrective action can be taken increasing the likelihood of achieving budget 13 Both monetary and nonmonetary incentives are used to encourage employees of an organization to achieve the organization s goals Monetary incentives appeal to the economic needs of an individual and nonmonetary incentives appeal to the psychological needs Since individuals are motivated by both economic and psychological factors both types of incentives ought to be present in a good budgetary system 14 Participative budgeting is a system of budgeting that allows subordinate managers a say in how the budgets are established Participative budgeting fosters creativity and communicates a sense of responsibility to subordinate managers It also creates a higher likelihood of goal congruence since managers have more of a tendency to make the budget s goals their own personal goals 15 Agree Individuals who are not challenged tend to lose interest and maintain a lower level of performance A challenging but achievable budget tends to extract a higher level of performance 16 Top management should provide guidelines and statistical input e g industrial forecasts and should review the budgets to minimize the possibility of budgetary slack and ensure that the budget is compatible with the strategic objectives of the firm Top management should also provide the incentive and reward system associated with the budgetary system 17 By underestimating revenues and overestimating costs the budget is more easily achieved 18 To meet budget it is possible to take actions that reduce costs in the short run but increase them in the long run For example lower priced lower quality materials can be substituted for the usual quality of materials 19 Other performance measures include productivity personnel development market 235235235 share and product quality A manager would have to be rewarded for improvements achieved in each area A major difficulty is determining how much weight to assign to each performance area 20 Behavioral factors can make or break a budgetary control system It is absolutely essential to consider the behavioral ramifications Ignoring them can and probably will produce dysfunctional consequences 21 Across the board cuts have the appearance of being fair but they unfairly penalize good programs In an era of scarce resources an organization must decide what it wishes to emphasize and allocate resources accordingly This may mean the complete elimination of weak programs and the strengthening of strong programs To cut each program equally without considering which ones are vital to the success of the organization is not good planning 22 Activity based budgeting requires three steps 1 identification of activities 2 estimation of activity output demands and 3 estimation of the costs of resources needed to provide the activity output demanded 23 Functional based flexible budgeting relies on unit based drivers to build cost formulas for various cost items Activity flexible budgeting uses activity drivers to build a cost formula for the costs of each activity 236236236 EXERCISES 8 1 1 Fresh n Clean Inc Sales Budget For the Year 2006 Detergent 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total Units40 00055 00062 00070 000227 000 Price 3 00 3 00 3 00 3 00 3 00 Sales 120 000 165 000 186 000 210 000 681 000 Presoak Units50 00050 00060 00070 000230 000 Price 3 50 3 50 3 50 3 50 3 50 Sales 175 000 175 000 210 000 245 000 805 000 Total sales 295 000 340 000 396 000 455 000 1 486 000 2 Fresh n Clean Inc will use the sales budget in planning as the basis for the production budget and the succeeding budgets of the master budget At the end of the year the company can compare actual sales against the budget to see if expectations were achieved 237237237 8 2 Fresh n Clean Inc Production Budget for Detergent For the Year 2006 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total Sales40 00055 00062 00070 000227 000 Des ending inventory5 5006 2007 0004 500 4 500 Total needs45 50061 20069 00074 500231 500 Less Beginning inventory2 0005 5006 2007 000 2 000 Units produced43 50055 70062 80067 500229 500 Fresh n Clean Inc Production Budget for Presoak For the Year 2006 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total Sales50 00050 00060 00070 000230 000 Des ending inventory10 00012 00014 00011 000 11 000 Total needs60 00062 00074 00081 000241 000 Less Beginning inventory3 20010 00012 00014 000 3 200 Units produced56 80052 00062 00067 000237 800 8 3 Cap n Ahab Inc Production Budget for Whole Bean Coffee For the First Quarter 20XX JanuaryFebruaryMarchTotal Sales200 000140 000180 000520 000 Des ending inventory28 00036 00042 000 42 000 Total needs228 000176 000222 000562 000 Less Beginning inventory35 00028 00036 000 35 000 Units produced193 000148 000186 000527 000 238238238 8 4 Cap n Ahab Inc Direct Materials Purchases Budget For January and February 1 Bags JanuaryFebruaryTotal Production193 000148 000341 000 1 bag 1 1 1 Bags for production193 000148 000341 000 Des ending inventory 14 800 18 600 18 600 Total needs207 800166 600359 600 Less Beginning inventory 19 300 14 800 19 300 Cans purchased188 500151 800340 300 2 Roasted beans JanuaryFebruaryTotal Production193 000148 000341 000 10 ounces 10 10 10 Ounces for production1 930 0001 480 0003 410 000 Des ending inventory 148 000 186 000 186 000 Total needs2 078 0001 666 0003 596 000 Less Beginning inventory 193 000 148 000 193 000 Ounces purchased1 885 0001 518 000 3 403 000 8 5 Carson Inc Production Budget For the First Quarter 20XX JanuaryFebruaryMarchTotal Sales200 000240 000220 000660 000 Desired ending inventory 36 000 33 000 30 000 30 000 Total needs236 000273 000250 000690 000 Less Beginning inventory 18 000 36 000 33 000 18 000 Units to be produced218 000237 000217 000672 000 239239239 8 6 Lanning Company Direct Materials Purchases Budget For March April and May 20XX MarchAprilMayTotal Units to be produced10 00030 00050 00090 000 Direct materials per unit yards 25 25 25 25 Production needs250 000750 0001 250 0002 250 000 Desired ending inventory yards 150 000250 00030 00030 000 Total needs400 0001 000 0001 280 0002 280 000 Less beginning inventory50 000150 000250 00050 000 Direct materials to be purchased yards 350 000850 0001 030 0002 230 000 Cost per yard 0 15 0 15 0 15 0 15 Total purchase cost 52 500 127 500 154 500 334 500 8 7 Lanning Company Direct Labor Budget For March April and May 20XX MarchAprilMayTotal Units to be produced10 00030 00050 00090 000 Direct labor time per unit hours 0 04 0 04 0 04 0 04 Total hours needed4001 2002 0003 600 Cost per hour 12 12 12 12 Total direct labor cost 4 800 14 400 24 000 43 200 240240240 8 8 Norton Inc Sales Budget For the Coming Year ModelUnitsPriceTotal Sales LB 150 400 29 00 1 461 600 LB 219 80015 00297 000 WE 625 20010 40262 080 WE 717 82010 00178 200 WE 89 60022 00211 200 WE 94 00026 00104 000 Total 2 514 080 8 9 1 Raylene s Flowers and Gifts Production Budget for Gift Baskets For September October November and December Sept Oct Nov Dec Sales200150180250 Desired ending inventory 15 18 25 10 Total needs215168205260 Less Beginning inventory 20 15 18 25 Units produced195153187235 241241241 8 9Continued 2 Raylene s Flowers and Gifts Direct Materials Purchases Budget For September October and November Fruit Sept Oct Nov Production195153187 Amount basket lbs 1 1 1 Needed for production195153187 Desired ending inventory 8913 Needed203162200 Less Beginning inventory 1089 Purchases193154191 Small gifts Sept Oct Nov Production195153187 Amount basket items 5 5 5 Needed for production975765935 Desired ending inventory 383 468 588 Needed1 3581 2331 523 Less Beginning inventory 488 383 468 Purchases 870 8501 055 Cellophane Sept Oct Nov Production195153187 Amount basket feet 3 3 3 Needed for production585459561 Desired ending inventory230281353 Needed815740914 Less Beginning inventory293230281 Purchases522510633 242242242 8 9Concluded Basket Sept Oct Nov Production195153187 Amount basket item 1 1 1 Needed for production195153187 Desired ending inventory 77 94118 Needed272247305 Less Beginning inventory 98 77 94 Purchases174170211 3 A direct materials purchases budget for December requires January production which cannot be computed without a February sales forecast 8 10 1 Credit sales in May 240 000 0 8 192 000 Credit sales in June 230 000 0 8 184 000 Credit sales in July 246 000 0 8 196 800 Credit sales in August 250 000 0 8 200 000 2 Ebert Inc Cash Receipts Budget JulyAugust Cash sales 49 200 50 000 Payments on account From May credit sales 0 08 192 000 15 360 From June credit sales 0 60 184 000 110 400 0 08 184 000 14 720 From July credit sales 0 30 196 800 59 040 0 60 196 800 118 080 From August credit sales 0 30 200 000 60 000 Cash receipts 234 000 242 800 243243243 8 11 1 Janzen Inc Cash Receipts Budget For July Payments on account From May credit sales 0 15 220 000 33 000 From June credit sales 0 60 230 000 138 000 From July credit sales 0 20 210 000 42 000 Less July cash discount 0 02 42 000 840 Cash receipts 212 160 2 Janzen Inc Cash Receipts Budget For August Payments on account From June credit sales 0 15 230 000 34 500 From July credit sales 0 60 210 000 126 000 From August credit sales 0 20 250 000 50 000 Less August cash discount 0 02 50 000 1 000 Cash receipts 209 500 8 12 Topper Company Schedule of Cash Payments for August Payments on accounts payable From July purchases 0 70 25 000 17 500 From August purchases 0 30 30 000 9 000 Direct labor payments From July 0 10 57 000 5 700 From August 0 90 63 000 56 700 Overhead 110 000 5 500 104 500 Loan repayment 10 000 10 000 0 12 4 12 10 400 Cash payments 203 800 244244244 8 13 1 Cash Budget For the Month of June 20XX Beginning cash balance 1 345 Collections Cash sales 20 000 Credit sales Current month 90 000 50 45 000 May credit sales 85 000 30 25 500 April credit sales 8 060 Total cash available 99 905 Less disbursements Inventory purchases Current month 110 000 80 40 35 200 Prior month 100 000 80 60 48 000 Salaries and wages 10 300 Rent 2 200 Taxes 5 500 Total cash needs 101 200 Excess of cash available over needs 1 295 Payments for April credit sales 50 000 16 8 000 Late fees remitted 8 000 2 0 015 60 Total Payments for April credit sales and late fees 8 000 60 8 060 2 Yes the business does show a negative cash balance for the month of June Without the possibility of short term loans the owner should consider taking less cash salary 245245245 8 14 1 Part A23 12 60 35 000 7 000 direct labor hours Part B14 24 60 10 000 4 000 direct labor hours Total direct labor hours 7 000 4 000 11 000 2 Roberoy Inc Overhead Budget For the Month of November Activity Level Formula11 000 Hours Variable costs Maintenance 1 40 15 400 Supplies0 707 700 Power0 121 320 Total variable costs 24 420 Fixed costs 1 12 of annual amount Depreciation 650 Salaries5 500 Total fixed costs6 150 Total overhead costs 30 570 246246246 8 15 1 ResourceFormula60 000 Moves activity output FixedVariable Salaries 400 000 400 000 Lease24 000 24 000 Crates 1 0060 000 Fuel 0 063 600 Total 424 000 1 06 487 600 Note Cycles instead of moves could have been used as the output measures In this case the variable cost per unit would double In some ways cycles is a better measure because crates then become a strictly variable cost for moves it is a step variable cost treated as a variable cost For either moves or cycles salaries and leases are step fixed costs Also capacity is determined by operators 3 2 000 10 60 000 moves The forklifts actually supply more potential capacity 3 24 280 3 60 480 but they cannot move without operators 2 ResourceFormula54 000 Moves activity output FixedVariable Salaries 400 000 400 000 Lease24 000 24 000 Crates 1 0054 000 Fuel 0 063 240 Total 424 000 1 06 481 240 The reduction in output reduces the demand for crates and fuel but the number of operators and forklifts would stay the same even if the reduction in activity output were permanent 247247247 8 15Concluded 3 ResourceFormula15 000 Moves activity output FixedVariable Salaries 120 000 120 000 Lease8 000 8 000 Crates 1 0015 000 Fuel 0 06900 Total 128 000 1 06 143 900 Note Reducing demand permanently to 15 000 moves requires three operators 3 2 000 3 18 000 assuming that part time help is not permitted and one forklift 24 280 3 20 160 If part time operators are allowed then the cost for salaries would be budgeted at 100 000 This illustrates the lumpy nature of resources and their role in budgeting 8 16 1 Pet Care Company Overhead Budget For the Coming Year Activity Level Formula55 000 Hours Variable costs Maintenance 0 40 22 000 Power0 5027 500 Indirect labor1 6088 000 Total variable costs 137 500 Fixed costs Maintenance 17 000 Indirect labor26 500 Rent18 000 Total fixed costs61 500 Total overhead costs 199 000 BasicDiet 0 25 100 000 25 000 SpecDiet 0 30 100 000 30 000 Total DLH55 000 248248248 8 16Concluded 2 10 higher Pet Care Company Overhead Budget For the Coming Year Activity Level Formula60 500 Hours Variable costs Maintenance 0 40 24 200 Power0 5030 250 Indirect labor1 6096 800 Total variable costs 151 250 Fixed costs Maintenance 17 000 Indirect labor26 500 Rent18 000 Total fixed costs61 500 Total overhead costs 212 750 55 000 DLH 110 60 500 20 lower Pet Care Company Overhead Budget For the Coming Year Activity Level Formula44 000 Hours Variable costs Maintenance 0 40 17 600 Power0 5022 000 Indirect labor1 6070 400 Total variable costs 110 000 Fixed costs Maintenance 17 000 Indirect labor26 500 Rent18 000 Total fixed costs61 500 Total overhead costs 171 500 55 000 DLH 80 44 000 249249249 8 17 1 Pet Care Company Performance Report For the Current Year ActualBudgetVariance Units produced220 000220 0000 Production costs Maintenance 40 500 41 000 500 F Power31 70030 0001 700 U Indirect labor119 000122 5003 500 F Rent18 00018 0000 Total costs 209 200 211 500 2 300 F Flexible budget amounts are based on 60 000 DLH 0 25 120 000 0 30 100 000 60 000 DLH Maintenance 17 000 0 40 60 000 41 000 Power 0 50 60 000 30 000 Indirect labor 26 500 1 60 60 000 122 500 2 All of the variances are within 5 to 10 percent of budgeted amounts Most would probably view the variances as immaterial There are numerous reasons for variances For example a favorable maintenance variance could be caused by less preventive maintenance or by increased efficiency by individual maintenance workers Indirect labor could be favorable because among other things lower priced labor was used to carry out higher skilled jobs Power could be more expensive than planned because of a rate increase An investigation would be needed to know exactly why the variances occurred 250250250 8 18 1 a An imposed budgetary approach does not allow input from those who are directly affected by the process This can tend to make the employe