使用達(dá)到的預(yù)算組織目標(biāo)（ppt 58）

1、11 - 1 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungUsing Budgets to Achieve Organizational ObjectivesChapter 1111 - 2 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungLearning Objective 1Id

2、entify the primary role of budgets and budgeting in organizations.11 - 3 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and Young Capacity-Related and Flexible ResourcesuWhat are flexible costs?uThey are costs that vary with the activity level in the org

3、anization.uWhat are committed costs?uThey are costs that do not change with changes in activity level.uThe budgetary process determines the level of most committed costs.11 - 4 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungPlanning and Control

4、and the Role of BudgetsuWhat is a budget?uIt is a quantitative expression of the money inflows and outflows that reveals whether a financial plan will meet organizational objectives.uWhat is budgeting?uIt is the process of preparing budgets.11 - 5 2001 Prentice Hall Business Publishing Management Ac

5、counting, 3/E, Atkinson, Banker, Kaplan, and YoungPlanning and Control and the Role of BudgetsuBudgets are a central part of the design and operation of management accounting systems.uBudgets also provide a way to communicate the organizations short-term goals to its members.uBudgeting serves to coo

6、rdinate the organizations activities.11 - 6 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungPlanning and Control and the Role of BudgetsuBudgeting is a tool that forces coordination of the organizations activities and helps identify coordination

7、problems.uBudgets are prepared for specific time periods.uDifferences between actual results and the budget plan are called variances.11 - 7 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungPlanning and Control and the Role of BudgetsIdentify Orga

8、nization Objectives and Short-Term GoalsDevelop Long-Term Strategy and Short-Term PlansDevelop MasterBudgetMeasure and AssessPerformanceReevaluate Objectives, Goals, Strategy, and PlansPlanningControl11 - 8 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan,

9、and YoungPlanning and Control and the Role of BudgetsuBudgeting involves forecasting the demand for three types of resources. uFlexible resources that give rise to variable costsuIntermediate-term capacity resources that give rise to capacity-related costsuLong-term capacity resources that give rise

10、 to capacity-related costs11 - 9 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungLearning Objective 2Demonstrate the importance of each element of the budgeting process.11 - 10 2001 Prentice Hall Business Publishing Management Accounting, 3/E, At

11、kinson, Banker, Kaplan, and Young Budgeting uThe budgeting process describes the broad activities performed during the budget period.uPlanners can select any budget period, but usually choose one year.11 - 11 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan

12、, and YoungElements of Budgeting1. Organization Goals3. Capital Spending Plan2. Sales Plan5. Production Plan8. Labor Hiring and Training Plan10. Expected Financial Results4. Inventory Policy6. Productive Capacity7. Materials Purchasing Plan9. Administrative and Discretionary Spending Plan 11. Statem

13、ent of Expected Cash Flows12. Projected Financial Statements11 - 12 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungLearning Objective 3Explain the different types of operating budgets and financial budgets and their interrelationships.11 - 13 20

14、01 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and Young Master Budget OutputsuThe master budget includes two sets of outputs:The expected or projectedfinancial resultsThe plans or operating budgets11 - 14 2001 Prentice Hall Business Publishing Management

15、Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungOperating BudgetsuOperating budgets typically consist of six operating plans:uThe sales plan identifies the planned level of sales for each product.uThe capital spending plan specifies the long-term capital investments.uThe production plan schedule

16、s all required purchasing activities.11 - 15 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungOperating Budgets4The materials purchasing plan schedules all required purchasing activities.5The labor hiring and training plan specifies the number of

17、people the organization must hire or release.6The administrative and discretionary spending plan includes administration, staffing, research and development, and advertising.11 - 16 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungFinancial Budget

18、suPlanners usually present the projected financial results, or financial budgets, in three forms:uA statement of expected cash flowsuThe projected (pro forma) balance sheetuThe projected (pro forma) income statement11 - 17 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson,

19、Banker, Kaplan, and YoungFinancial BudgetsuFinancial analysts use the statement of projected cash flows in two ways:uTo plan when excess cash will be generated so that they can undertake short-term investmentsuTo organize how to meet any cash shortages11 - 18 2001 Prentice Hall Business Publishing M

20、anagement Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungLearning Objective 4Describe the way that organizations effectively use and interpret budgets.11 - 19 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungThe Budgeting ProcessuWhat is a de

21、mand forecast?uIt is the estimate of the market demand, or sales potential, for a product given the specific product price. uThis forecast drives the budgeting process.uWhat is the production plan? uIt identifies the intended production during each sub-period of the annual budget.11 - 20 2001 Prenti

22、ce Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungThe Budgeting ProcessuHow frequent can budget sub-periods be?udailyuweeklyumonthlyuPlanners use the inventory policy along with the sales plan to develop the production plan.11 - 21 2001 Prentice Hall Business

23、 Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungThe Budgeting ProcessuWhat is aggregate planning?uIt is an approximated determination of whether the organization has the capacity to undertake a proposed production plan.uWhat are spending plans?uThey are tentative resource

24、commitments.11 - 22 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungThe Budgeting ProcessuWhat are examples of spending plans?Materials purchasingplansLabor hiring andtraining planAdministrative anddiscretionaryspending planCapital spendingplan11

25、 - 23 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungThe Budgeting ProcessuWhat resources determine capacity levels?uFlexible resources that the organization can acquire in the short termuCommitted resources that the organization must acquire fo

26、r the intermediate termuCommitted resources that the organization must acquire for the long term11 - 24 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungCapacity Types and Commitment TimeTermFlexible resources required in short term(less than seve

27、ral weeks)Type of Capacity AcquiredProvides the ability to useexisting capacityExamplesRaw materials, supplies,casual labor11 - 25 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungCapacity Types and Commitment TimeTermCommitted resources acquired

28、for theintermediate term (up to six months)Type of Capacity AcquiredGeneral purpose capacity that istransferable between organizationsExamplesPeople, general purpose equipment,specialty raw materials11 - 26 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan,

29、and YoungCapacity Types and Commitment TimeTermCommitted resources acquired for thelong-term (more than six months)Type of Capacity AcquiredSpecial purpose capacity that is customizedfor the organizations useExamplesBuildings,special purpose equipment11 - 27 2001 Prentice Hall Business Publishing Ma

30、nagement Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungInterpreting the Production PlanuProduction is the minimum of demand and capacity.Production =Minimum (production capacity, total demand)11 - 28 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, a

31、nd YoungThe Financial PlansuOnce planners have developed the production, staffing, and capacity plans, they can prepare a financial summary of the tentative operating plans.uWhat is a line of credit?uIt is a short-term financing arrangement, with a pre-specified limit, between an organization and a

32、financial institution.11 - 29 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungThe Cash Flow Statement Projected Cash Flow StatementCash inflows from sales and collectionsof receivablesCash outflows for: Short-term flexible resources Intermediate-

33、term committed resources Long-term committed resourcesResults of financing operations11 - 30 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungThe Cash Flow StatementFormat of Cash Flow StatementCash inflows Cash outflows= Net cash flow11 - 31 2001

34、 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungThe Cash Flow StatementFormat of Financing Section of Cash Flow StatementNet cash flow from operations+ Opening cash Cash invested or withdrawn Cash provided or used in issuing or retiring stock or debt

35、= Cash available before short-tem financing Cash used or provided by short-term financing= Ending cash11 - 32 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungUsing the Projected ResultsuPlanners use budget information to.uidentify broad resources

36、 requirements.uidentify potential problems.ucompare projected operating and financial results.11 - 33 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungCost-Volume-Profit AnalysisuConventional cost-volume-profit analysis rests on several assumption

37、s.uWhat are some of these assumptions?uAll of an organizations costs are either flexible or capacity related.uUnits made equals units sold.uRevenue per unit does not change as volume changes.11 - 34 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and Youn

38、gCost-Volume-Profit AnalysisuWhat is the contribution margin?uIt is the selling price less all flexible costs.uWhat is the break-even point in units?Capacity-Related CostsContribution Margin Per Unit11 - 35 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan,

39、and YoungCost-Volume-Profit AnalysisuAssume Princeton Company manufactures three products: Plastic valves, metal valves, and specialty valves.uCapacity related costs are $20,400,000. Plastic Metal Specialty Unit Sales 500,000 425,000 400,000 Contribution Margin $14 $15 $1311 - 36 2001 Prentice Hall

40、Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungCost-Volume-Profit AnalysisuWhat is the weighted average contribution margin?uPlastic valves: $14 500,000 1,325,000uMetal valves: $15 425,000 1,325,00uSpecialty valves: $13 400,000 1,325,00u$14.018911 - 37 2001 Prenti

41、ce Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungCost-Volume-Profit AnalysisuWhat is the breakeven in units?u$20,400,000 $14.0189 = 1,455,178 uHow many plastic valves?u1,455,178 500,000 1,325,000 = 549,124uHow many metal valves?u1,455,178 425,000 1,325,000 =

42、 466,75511 - 38 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungLearning Objective 5Undertake what-if and sensitivity analysis two important budgeting tools used by budget planners.11 - 39 2001 Prentice Hall Business Publishing Management Account

43、ing, 3/E, Atkinson, Banker, Kaplan, and YoungWhat-If AnalysisuWhat is “what-if” analysis?uIt is a strategy that uses a model to predict the results of varying key parameters or estimates.11 - 40 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungSen

44、sitivity AnalysisuWhat is sensitivity analysis?uIt is the process of selectively varying a plans or a budgets key estimates. uIf small changes in parameters produce large changes in decisions or results, the plan is said to be sensitive to the estimates.11 - 41 2001 Prentice Hall Business Publishing

45、 Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungLearning Objective 6Identify the role of budgets in service and not-for-profit organizations.11 - 42 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungThe Role of Budgeting in Service

46、and Not-For-Profit OrganizationsuThe role for budgeting in planning and control is as important in not-for-profit and government organizations as it is in profit seeking organizations.11 - 43 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungThe Ro

47、le of Budgeting in Service and Not-For-Profit OrganizationsOrganization Focus of Budgeting Type ProcessManufacturing Sales and manufacturing activities Natural resources Sales, resource availability, and acquisitionService Sales activities, and staffing requirementsNonprofit Raising revenues and con

48、trolling expenditures11 - 44 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungThe Role of Budgeting in Service and Not-For-Profit OrganizationsuWhat is an appropriation?uIt is an authorized spending limit in a governmental department.uWhat is a pe

49、riodic budget?uIt is a budget prepared for a specified period of time.uusually one year11 - 45 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungThe Role of Budgeting in Service and Not-For-Profit OrganizationsuWhat is continuous budgeting?uIt is t

50、he process that organizes the budget into subintervals.uAs each budget subinterval ends, the organization drops the completed subinterval from the budget and adds the next budget subinterval.11 - 46 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and Youn

51、gControlling Discretionary ExpendituresuOrganizations use three general approaches to budget discretionary expenditures.Incremental BudgetingZero-Based BudgetingProject Funding11 - 47 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungControlling Di

52、scretionary ExpendituresuWhat is incremental budgeting?uIt is an approach to developing appropriations for discretionary expenditures that assumes that the starting point for each discretionary expenditure item is the amount spent on it in the previous budget.11 - 48 2001 Prentice Hall Business Publ

53、ishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungControlling Discretionary ExpendituresuWhat is zero-based budgeting?uIt is an approach to developing appropriations for discretionary expenditures that assumes that the starting point for each discretionary expenditure item is zer

54、o.11 - 49 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungControlling Discretionary ExpendituresuWhat is project funding?uIt is an approach to developing appropriations for discretionary expenditures that organizes appropriations into a package t

55、hat focuses on achieving some defined output.11 - 50 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungControlling Discretionary ExpendituresuA recent phenomenon has been the rise of activity based budgeting.uActivity based budgeting uses knowledge

56、 about the relationship between production units and the activities required to produce those units to develop detailed estimates of activity requirements.11 - 51 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungLearning Objective 7Recognize the b

57、ehavioral effects of budgeting on an organizations employees.11 - 52 2001 Prentice Hall Business Publishing Management Accounting, 3/E, Atkinson, Banker, Kaplan, and YoungManaging the Budget ProcessuWho should manage and oversee the budgeting process?uMany organizations use a budget team.uThe budget team usually reports to a budget co