财务管理-预算.ppt

WorkofManagement,Planning,Controlling,DirectingandMotivating,Remember!,PlanningandControl,Planning-involvesdevelopingobjectivesandpreparingvariousbudgetstoachievetheseobjectives.,Control-involvesthestepstakenbymanagementthatattempttoensuretheobjectivesareattained.,Ituncoverspotentialbottlenecksbeforetheyoccur.Itcoordinatestheactivitiesoftheentireorganizationbyintegratingtheplansandobjectivesofthevariousparts.Itensuresthataccountingrecordscomplywithgenerallyacceptedaccountingprinciples.Itprovidesbenchmarksforevaluatingsubsequentperformance.,Whichofthefollowingisnotabenefitofbudgeting?,AdvantagesofBudgeting,Advantages,Communicatingplans,Thinkaboutandplanforthefuture,Meansofallocatingresources,Uncoverpotentialbottlenecks,Coordinateactivities,Definegoalandobjectives,ResponsibilityAccounting,Managersshouldbeheldresponsibleforthoseitemsandonlythoseitemsthatthemanagercanactuallycontroltoasignificantextent.,FairmontInc.usesanaccountingsystemthatchargescoststothemanagerwhohasbeendelegatedtheauthoritytomakedecisionsconcerningthecosts.Forexample,ifthesalesmanageracceptsarushorderthatwillresultinhigherthannormalmanufacturingcosts,theseadditionalcostsarechargedtothesalesmanagerbecausetheauthoritytoacceptordeclinetherushorderwasgiventothesalesmanager.Thistypeofaccountingsystemisknownas:,A)responsibilityaccounting.B)contributionaccounting.C)absorptionaccounting.D)operationalbudgeting.,ChoosingtheBudgetPeriod,OperatingBudget,1999,2000,2001,2002,Theannualoperatingbudgetmaybedividedintoquarterlyormonthlybudgets.,ChoosingtheBudgetPeriod,1999,2000,2001,2002,ContinuousorPerpetualBudget,Thisbudgetisusuallyatwelve-monthbudgetthatrollsforwardonemonthasthecurrentmonthiscompleted.,ParticipativeBudgetSystem,FlowofBudgetData,TheBudgetCommittee,Astandingcommitteeresponsibleforoverallpolicymattersrelatingtothebudgetcoordinatingthepreparationofthebudget,Amethodofbudgetinginwhichthecostofeachprogrammustbejustifiedeveryyeariscalled:,operationalbudgeting.zero-basedbudgeting.continuousbudgeting.responsibilityaccounting.,Zero-BaseBudgeting,Managersarerequiredtojustifyallbudgetedexpenditures,notjustchangesinthebudgetfromthepreviousyear.Thebaselineiszeroratherthanlastyearsbudget.,Letuspracticeonthebasicsofbudgeting!,ParleeCompanyssalesare30%incashand70%oncredit.Sixtypercentofthecreditsalesarecollectedinthemonthofsale,25%inthemonthfollowingsale,and12%inthesecondmonthfollowingsale.Theremainderareuncollectible.Thefollowingarebudgetedsalesdata:Totalsales:January$60,000February$70,000March$50,000April$30,000,TotalcashreceiptsinAprilwouldbebudgetedtobe:A)$38,900.B)$47,900.C)$27,230.D)$36,230.,ModestoCompanyproducesandsellsProductAlphaB.Toguardagainststockouts,thecompanyrequiresthat20%ofthenextmonthssalesbeonhandattheendofeachmonth.BudgetedsalesofProductAlphaBoverthenextfourmonthsare:BudgetedsalesinunitsJuneJulyAugustSeptember30,00040,00060,00050,000,BudgetedproductionforAugustwouldbe:A)62,000units.B)70,000units.C)58,000units.D)50,000units.,FridenCompanyhasbudgetedsalesandproductionoverthenextquarterasfollows:AprilMayJuneSalesinunits100,000120,000?Productioninunits104,000128,000156,000Thecompanyhas20,000unitsofproductonhandatApril1.Aminimumof20%ofthenextmonthssalesneedsinunitsmustbeonhandattheendofeachmonth.Julysalesareexpectedtobe140,000units.,BudgetedsalesforJunewouldbe(inunits):A)188,000.B)160,000.C)128,000.D)184,000,MarpleCompanysbudgetedproductioninunitsandbudgetedrawmaterialspurchasesoverthenextthreemonthsaregivenbelow:JanuaryFebruaryMarchBudgetedproduction(inunits)60,000?100,000Budgetedrawmaterialspurchases(inkilograms)129,000165,000188,000Twokilogramsofrawmaterialsarerequiredtoproduceoneunitofproduct.Thecompanywantsrawmaterialsonhandattheendofeachmonthequalto30%ofthefollowingmonthsproductionneeds.Thecompanyisexpectedtohave36,000kilogramsofrawmaterialsonhandonJanuary1.,BudgetedproductionforFebruaryshouldbe:A)105,000units.B)82,500units.C)150,000units.D)75,000units.,Now,themotivationalsideofbudgeting!,Budgetscanbedefinedas:,“aquantitativemodel,orsummaryoftheexpectedconsequencesoftheorganizationsshort-termoperatingactivities.”ManagementAccountingAtkinson,Banker,Kaplan&Young,Whatisthisdefinitionimplying?,Thedefinitionsuggests:,Availabilityofquantitativedata,Predictabilityofshort-termoutcomes,Clear-cutorganizationalstructures.Thereisonemajorlogicalproblem,whichis?Iftheabovearetrue,whatdoyouneedthebudgetfor?,Thebudgetaryprocessisratheraprocess,Toquantify“qualitative”judgment,Toforecasttheimpactsofsomeuncertainevents,Tosimplifythecomplexorganizationalstructures.,AsZimmermanindicated(p.244),thebudgetprocess,isacommunicationdeviceinvolvingbothverticalandhorizontalinformationtransferisanegotiationandinternalcontractingprocedureispartoftheperformanceevaluationsystempartitiondecisionrights,BudgetstoSolve“Agency”Problems,Short-termbudgetsasinternalcontracts.ToformallycommitresponsibilitycentersAsawarningforfuturemonitoringactionsLong-termbudgetstoreduceinformationasymmetry.Tosolicitprivate,specializedinformationfromlocalmanagersForcemanagerstothinkstrategically,ratherthanonjusttheshort-termresults,BudgetstoSolve“Agency”Problems,Line-itembudgetsAuthorizemanagerstospendonlyuptoacertainamountperlineitemCannottransferexcesstoandfromline-itemsNoincentivetoreducespendingBudgetlapsingnocarryoverstonextperiodIncentivetospendallthebudgetedamountsIntendtoavoidmanagersbuildingups