Cost Accounting Foundations and Evolutions Kinney, Prather, Raiborn

صفحه 1:
Cost Accounting Foundations and ٌ Evolutions Kinney, Prather, Raiborn Chapter 8 The Master Budget 0 000 7 

صفحه 2:
ie. ۰ 5 ¢ Explain why budgeting is important * Describe how strategic planning is related to budgeting * Identify the starting point of a master budget and explain why it is the starting point * Prepare various master budget Err Teh 20 a ce) ‏ست‎ 07 they relate to one another 

صفحه 3:
ie. ۰ 5 * Explain why the cash budget is ۱۹۹/7 in the master budgeting process * List the benefits provided by a budget * (Appendix) Explain how a budget manual facilitates the budgeting process 

صفحه 4:
ie. ۰ 5 ° Budgeting - Formalizes plans and ۱9۹-۱۱۱۹۱ 15 into a documented, quantitative format ° Budget - Expresses a commitment to planned activities and resource acquisition and use 

صفحه 5:
* Long-term (5 to 10 years) * Top-level management ¢ Long-range goals, strategies, and policies * Foundation for short-term planning * Identify and gather information on key variables, both internal and ‏موه‎ نت 

صفحه 6:
Tactical me * Short-term (1 to 18 months) * Top and middle management * Specific objectives and means to achieve strategic plans * Basis against which results can be measured 

صفحه 7:
Budgeting = ¢ Short-term ¢ Top, middle, and operational management involvement * Usable guidelines to implement strategic and tactical plans ¢ Allocates resources ¢ Standard against which performance can be measured 

صفحه 8:
ie. ۰ 5 ۱ A comprehensive set of budgets, budgetary schedules, and pro forma organizational financial statements * For a specific period of time * Static - based on a single level of output demand * Interactive - departments generate and consume information 

صفحه 9:
The Master Budget Gen Oa 0 (CN a ۱3 ۱ ‏اكت‎ ‏سحا‎ ‏اس سس رت‎ بو OT at RON ca PN rae aN hoo [Purchases Durdet ‏احولی 60 هرا و(‎ 50 Cee ic erie me aed الیظ) 

صفحه 10:


صفحه 11:
ار ° Extrapolate past trends * Use market research * Employ statistical models and simulation 

صفحه 12:
ie. ۰ 5 * Production manager combines - Sales estimates - Beginning inventory targets - Ending inventory targets ٠ ‏رعمتاتاصهنتن رعومجا مطا عمصتصتماوظ‎ and timing of products to be manufactured 

صفحه 13:
ie. ۰ 5 ¢ Total number of people * Specific types of workers * Production hours needed * Costs - Union contracts ‏ا اا‎ - Fringe benefit costs - Payroll taxes 

صفحه 14:
* Identify activity base ¢ Estimate overhead costs * Separate costs as fixed or variable * Show total costs for operating budgets * Show costs without depreciation for cash budgets pW ee Olek TCs 

صفحه 15:
The Financial Budget OTe ar at ae Oe A eed a Cand Gk 0 متا ‎Od‏ ۱ ۹ الیظ) جله) سس رت ‎aNd CN eco‏ هه ‎CEN ca‏ 

صفحه 16:
ie. 32 5 * Highlights importance of cash for organization’s continued existence ¢ Translates accrual-based information into cash flows ۳ * Indicates effectiveness of credit practices * Allows for planned cash borrowing or investing ۰ ۳ to ea pro forma Cash Flow 

صفحه 17:
ie. ۰ 5 * Long-term fixed asset needs - Plant - Equipment ¢ Payment points 

صفحه 18:
ie. ۰ 5 * Continuous budgeting ¢ Budget slack * Participatory budget * Imposed budgets BACCO LAS Mh me EEL LL eCoouC SAL - imposed on operating personnel 

صفحه 19:
* Connect line items in budget to list of activities ¢ Raise awareness of non-value- added activities * Question and reduce non-value- added costs 

صفحه 20:
ie. ۰ 5 * How are strategic and tactical planning related to budgeting? + In what order are the master budget schedules prepared? * Why is the cash budget important in the master budgeting process?