使用達(dá)到的預(yù)算組織目標(biāo)(1)ppt課件

1、Using Budgets to Achieve Organizational ObjectivesChapter 11Learning Objective 1Identify the primary role of budgets and budgeting in organizations. Capacity-Related and Flexible ResourcesWhat are flexible costs?They are costs that vary with the activity level in the organization.What are committed

2、costs?They are costs that do not change with changes in activity level.The budgetary process determines the level of most committed costs.Planning and Control and the Role of BudgetsWhat is a budget?It is a quantitative expression of the money inflows and outflows that reveals whether a financial pl

3、an will meet organizational objectives.What is budgeting?It is the process of preparing budgets.Planning and Control and the Role of BudgetsBudgets are a central part of the design and operation of management accounting systems.Budgets also provide a way to communicate the organizations short-term g

4、oals to its members.Budgeting serves to coordinate the organizations activities.Planning and Control and the Role of BudgetsBudgeting is a tool that forces coordination of the organizations activities and helps identify coordination problems.Budgets are prepared for specific time periods.Differences

5、 between actual results and the budget plan are called variances.Planning and Control and the Role of BudgetsIdentify Organization Objectives and Short-Term GoalsDevelop Long-Term Strategy and Short-Term PlansDevelop MasterBudgetMeasure and AssessPerformanceReevaluate Objectives, Goals, Strategy, an

6、d PlansPlanningControlPlanning and Control and the Role of BudgetsBudgeting involves forecasting the demand for three types of resources. Flexible resources that give rise to variable costsIntermediate-term capacity resources that give rise to capacity-related costsLong-term capacity resources that

7、give rise to capacity-related costsLearning Objective 2Demonstrate the importance of each element of the budgeting process. Budgeting The budgeting process describes the broad activities performed during the budget period.Planners can select any budget period, but usually choose one year.Elements of

8、 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. Statement of Expected Cash F

9、lows12. Projected Financial StatementsLearning Objective 3Explain the different types of operating budgets and financial budgets and their interrelationships. Master Budget OutputsThe master budget includes two sets of outputs:The expected or projectedfinancial resultsThe plans or operating budgetsO

10、perating BudgetsOperating budgets typically consist of six operating plans:The sales plan identifies the planned level of sales for each product.The capital spending plan specifies the long-term capital investments.The production plan schedules all required purchasing activities.Operating BudgetsThe

11、 materials purchasing plan schedules all required purchasing activities.The labor hiring and training plan specifies the number of people the organization must hire or release.The administrative and discretionary spending plan includes administration, staffing, research and development, and advertis

12、ing.Financial BudgetsPlanners usually present the projected financial results, or financial budgets, in three forms:A statement of expected cash flowsThe projected (pro forma) balance sheetThe projected (pro forma) income statementFinancial BudgetsFinancial analysts use the statement of projected ca

13、sh flows in two ways:To plan when excess cash will be generated so that they can undertake short-term investmentsTo organize how to meet any cash shortagesLearning Objective 4Describe the way that organizations effectively use and interpret budgets.The Budgeting ProcessWhat is a demand forecast?It i

14、s the estimate of the market demand, or sales potential, for a product given the specific product price. This forecast drives the budgeting process.What is the production plan? It identifies the intended production during each sub-period of the annual budget.The Budgeting ProcessHow frequent can bud

15、get sub-periods be?dailyweeklymonthlyPlanners use the inventory policy along with the sales plan to develop the production plan.The Budgeting ProcessWhat is aggregate planning?It is an approximated determination of whether the organization has the capacity to undertake a proposed production plan.Wha

16、t are spending plans?They are tentative resource commitments.The Budgeting ProcessWhat are examples of spending plans?Materials purchasingplansLabor hiring andtraining planAdministrative anddiscretionaryspending planCapital spendingplanThe Budgeting ProcessWhat resources determine capacity levels?Fl

17、exible resources that the organization can acquire in the short termCommitted resources that the organization must acquire for the intermediate termCommitted resources that the organization must acquire for the long termCapacity Types and Commitment TimeTermFlexible resources required in short term(

18、less than several weeks)Type of Capacity AcquiredProvides the ability to useexisting capacityExamplesRaw materials, supplies,casual laborCapacity Types and Commitment TimeTermCommitted resources acquired for theintermediate term (up to six months)Type of Capacity AcquiredGeneral purpose capacity tha

19、t istransferable between organizationsExamplesPeople, general purpose equipment,specialty raw materialsCapacity Types and Commitment TimeTermCommitted resources acquired for thelong-term (more than six months)Type of Capacity AcquiredSpecial purpose capacity that is customizedfor the organizations u

20、seExamplesBuildings,special purpose equipmentInterpreting the Production PlanProduction is the minimum of demand and capacity.Production =Minimum (production capacity, total demand)The Financial PlansOnce planners have developed the production, staffing, and capacity plans, they can prepare a financ

21、ial summary of the tentative operating plans.What is a line of credit?It is a short-term financing arrangement, with a pre-specified limit, between an organization and a financial institution.The Cash Flow Statement Projected Cash Flow StatementCash inflows from sales and collectionsof receivablesCa

22、sh outflows for: Short-term flexible resources Intermediate-term committed resources Long-term committed resourcesResults of financing operationsThe Cash Flow StatementFormat of Cash Flow StatementCash inflows Cash outflows= Net cash flowThe Cash Flow StatementFormat of Financing Section of Cash Flo

23、w StatementNet cash flow from operations+ Opening cash Cash invested or withdrawn Cash provided or used in issuing or retiring stock or debt= Cash available before short-tem financing Cash used or provided by short-term financing= Ending cashUsing the Projected ResultsPlanners use budget information

24、 to.identify broad resources requirements.identify potential pare projected operating and financial results.Cost-Volume-Profit AnalysisConventional cost-volume-profit analysis rests on several assumptions.What are some of these assumptions?All of an organizations costs are either flexible or capacit

25、y related.Units made equals units sold.Revenue per unit does not change as volume changes.Cost-Volume-Profit AnalysisWhat is the contribution margin?It is the selling price less all flexible costs.What is the break-even point in units?Capacity-Related CostsContribution Margin Per UnitCost-Volume-Pro

26、fit AnalysisAssume Princeton Company manufactures three products: Plastic valves, metal valves, and specialty valves.Capacity related costs are $20,400,000. Plastic Metal Specialty Unit Sales 500,000425,000 400,000 Contribution Margin $14 $15 $13Cost-Volume-Profit AnalysisWhat is the weighted averag

27、e contribution margin?Plastic valves: $14 500,000 1,325,000Metal valves: $15 425,000 1,325,00Specialty valves: $13 400,000 1,325,00$14.0189Cost-Volume-Profit AnalysisWhat is the breakeven in units?$20,400,000 $14.0189 = 1,455,178 How many plastic valves?1,455,178 500,000 1,325,000 = 549,124How many

28、metal valves?1,455,178 425,000 1,325,000 = 466,755Learning Objective 5Undertake what-if and sensitivity analysis two important budgeting tools used by budget planners.What-If AnalysisWhat is “what-if analysis?It is a strategy that uses a model to predict the results of varying key parameters or esti

29、mates.Sensitivity AnalysisWhat is sensitivity analysis?It is the process of selectively varying a plans or a budgets key estimates. If small changes in parameters produce large changes in decisions or results, the plan is said to be sensitive to the estimates.Learning Objective 6Identify the role of

30、 budgets in service and not-for-profit organizations.The Role of Budgeting in Service and Not-For-Profit OrganizationsThe role for budgeting in planning and control is as important in not-for-profit and government organizations as it is in profit seeking organizations.The Role of Budgeting in Servic

31、e 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 controlling expendituresThe

32、Role of Budgeting in Service and Not-For-Profit OrganizationsWhat is an appropriation?It is an authorized spending limit in a governmental department.What is a periodic budget?It is a budget prepared for a specified period of time.usually one yearThe Role of Budgeting in Service and Not-For-Profit O

33、rganizationsWhat is continuous budgeting?It is the process that organizes the budget into subintervals.As each budget subinterval ends, the organization drops the completed subinterval from the budget and adds the next budget subinterval.Controlling Discretionary ExpendituresOrganizations use three

34、general approaches to budget discretionary expenditures.Incremental BudgetingZero-Based BudgetingProject FundingControlling Discretionary ExpendituresWhat is incremental budgeting?It is an approach to developing appropriations for discretionary expenditures that assumes that the starting point for e

35、ach discretionary expenditure item is the amount spent on it in the previous budget.Controlling Discretionary ExpendituresWhat is zero-based budgeting?It is an approach to developing appropriations for discretionary expenditures that assumes that the starting point for each discretionary expenditure

36、 item is zero.Controlling Discretionary ExpendituresWhat is project funding?It is an approach to developing appropriations for discretionary expenditures that organizes appropriations into a package that focuses on achieving some defined output.Controlling Discretionary ExpendituresA recent phenomen

37、on has been the rise of activity based budgeting.Activity based budgeting uses knowledge about the relationship between production units and the activities required to produce those units to develop detailed estimates of activity requirements.Learning Objective 7Recognize the behavioral effects of budgeting on an organizations employees.Managing the Budget ProcessWho should manage and oversee the budgeting process?Many organizations use a budget team.The budget team usuall