chap10管理成本會(huì)計(jì)CGAMA1ManagerialAccounting

chap10管理成本會(huì)計(jì)CGAMA1ManagerialAccountingLearningObjective1Understandwhyorganizationsbudgetandtheprocessestheyusetocreatebudgets.TheBasicFrameworkofBudgetingAbudgetisadetailedquantitativeplanforacquiringandusingfinancialandotherresourcesoveraspecifiedforthcomingtimeperiod.Theactofpreparingabudgetiscalledbudgeting.Theuseofbudgetstocontrolanorganization’sactivitiesisknownasbudgetarycontrol.PlanningandControlPlanning–

involvesdevelopingobjectivesandpreparingvariousbudgetstoachievethoseobjectives.Control

–

involvesthestepstakenbymanagementtoincreasethelikelihoodthattheobjectivessetdownwhileplanningareattainedandthatallpartsoftheorganizationareworkingtogethertowardthatgoal.AdvantagesofBudgetingAdvantagesDefinegoalsandobjectivesUncoverpotentialbottlenecksCoordinateactivitiesCommunicateplansMeansofallocatingresourcesResponsibilityAccounting

Managersshouldbeheldresponsibleforthoseitems-andonlythoseitems-thattheycanactuallycontrol

toasignificantextent.ChoosingtheBudgetPeriodOperatingBudget2011201220132014Operatingbudgetsordinarilycoveraone-yearperiodcorrespondingtoacompany’sfiscalyear.Manycompaniesdividetheirannualbudgetintofourquarters.Acontinuousbudgetisa

12-monthbudgetthatrolls

forwardonemonth(orquarter)

asthecurrentmonth(orquarter)

iscompleted.LearningObjective2UnderstandBasicBudgetingTermsandtheBehavioralAspectsofBudgeting.Bottom-upandTop-downBudgetingBottom-upbudgeting(Self-imposedbudgetorParticipativebudget)Top-downbudgetingAdvantagesoftheBottom-upBudgeting(Self-ImposedBudgets)Individualsatalllevelsoftheorganizationareviewedasmembersoftheteamwhosejudgmentsarevaluedbytopmanagement.Budgetestimatespreparedbyfront-linemanagersareoftenmoreaccuratethanestimatespreparedbytopmanagers.Motivationisgenerallyhigherwhenindividualsparticipateinsettingtheirowngoalsthanwhenthegoalsareimposedfromabove.Amanagerwhoisnotabletomeetabudgetimposedfromabovecanclaimthatitwasunrealistic.Self-imposedbudgetseliminatethisexcuse.Howtoovercomeproblemsofself-imposedbudgetsSelf-imposedbudgetsshouldbereviewedbyhigherlevelsofmanagementtoprevent“budgetaryslack(orbudgetpadding).”Mostcompaniesissuebroadguidelinesintermsofoverallprofitsorsales.Lowerlevelmanagersaredirectedtopreparebudgetsthatmeetthosetargets.AdvantagesoftheTop-downBudgetingAvoidthepotentialbudgetaryslack(budgetpadding).Provideaclearerperformancegoalsandexpectationsfromthetopmanagement.Mayprovidebetterbudgetduetotopmanagement’saccesstoprivileged/confidentialmarketandorganizationinformation.Provideanefficientbudgetaryprocess.BudgetLapsingApopularmethodamonggovernmentagencies,universitiesandorganizationsrelyingonallocatedfunds.Anyunusedfundingattheendofthefinancialperiodcannotbecarriedforwardtothefollowingyear.Asaresult,thefollowingyear’sbudgetmaybecutbecauseoftheunder-expenditureinthepreviousyear.BudgetLapsing:AdvantagesBudgetlapsinghelpsensurethattheappropriatelevelofresourcesisutilizedineachperiod.Withoutbudgetlapsing,risk-aversemanagersmayunnecessarilyaccumulatefundsandthismayadverselyaffecttheperformanceoftheorganization.Ithelpsprovideanopportunityforacleancut-offofexpendituresandtoreallocateanyunusedresourcesforothermoreappropriaterequirements.BudgetLapsing:PotentialProblem&SolutionBudgetlapsingcancauseundesiredbehavioreffects.Forexample,managersmaywastefullyspendtheirentirebudgetbeforetheendoftheperiodinordertoavoidbudgetcuts.

Asystemofreviewingtheexpendituresnearendoftheperiodmayuncoverunnecessaryexpendituresanddiscouragemanagerstowastefullyspendbecauseofbudgetlapsing.IncrementalversusZero-basedBudgetsIncrementalmethodofbudgetingismostcommonlyusedbycompanies.Companiesstartoffoneyear’sbudgetbyreferringbacktothepreviousyear’sfigures.Adjustmentsarethenmadetothebudgettoaccountfortheexpectedchangessuchaspricesforthenextyear.Whileincrementalmethodofbudgetingispracticalandfast,anyinefficiencyinthepreviousyear’sfiguresmaybecarriedforward.Forexample,ifallalongtheorganizationisoverstaffed,thenthebudgetwillcontinuallytobeallowingfortheoverstaffingsituationunderthismethod.IncrementalversusZero-basedBudgetsZero-BasedBudgetsarepreparedbasedontheassumptionthatthecompanyhasjuststarted.Therefore,resourcesrequiredhavetobejustifiedfromscratch.Forexample,whenbudgetingforstaffcostforarestaurant,managersusingthezero-basedbudgetingapproachwillignoretheexistingstafflevelandexpenses,rather,theywillexaminefactorssuchasopeninghours,numberoftables,expectedpatronnumberstoworkoutthenumberofstaffrequiredateachpositionandlevel,hencetheassociatecosts,toproduceabudget.IncrementalversusZero-basedBudgetsCompaniesusingthezero-basedmethoddonotsimplyignorepreviousyears’figures.Figuresgeneratedbythezero-basedmethodareusuallycomparedwithpreviousyears’figures.Anylargedifferencesareinvestigated.Aszero-basedbudgetingistimeconsumingandcostly,companiestendtousethismethodfortherelativelylargeitemsandtheincrementalmethodfortherest.TopManagementAttitude:

HumanFactorsinBudgetingThesuccessofabudgetprogramdependsonthreeimportantfactors:Topmanagementmustbeenthusiasticand

committedtothebudgetprocess.Topmanagementmustnotusethebudgetto

pressureemployeesorblamethemwhen

somethinggoeswrong.Budgettargetsshouldbechallengingbutachievableinordertohavegoodmotivationaleffects.TheBudgetCommitteeAstandingcommitteeresponsibleforoverallpolicymattersrelatingtothebudgetcoordinatingthepreparationofthebudgetresolvingdisputesrelatedtothebudgetapprovingthefinalbudgetLearningObjective3UnderstandtheKeyComponentsofMasterBudgetinManufacturing,MerchandisingandServiceIndustriesUnderstandthekeycomponentsofmasterbudgetinManufacturing,Merchandising,andServiceIndustriesThefirststepofbudgetingforeverybusinessistobudgetfortherevenue,whetheritisasalesbudgetforprovidinggoodsorservicesorafundingbudget.Althoughoperationalbudgetsareadaptedaccordingtotheindustries,theyareverysimilarandtypicallycompriseofbudgetsforIncomestatementCashBalancesheet.Themajordifferencesofdifferentindustriesinclude:Manufacturing:productionbudgetisinvolvedMerchandising:noproductionbudget,onlypurchasebudgetofmerchandiseisrequired.ServiceIndustries:budgetforrevenueandcostofprovidingservicesNot-for-profit:expectedfundingavailableandplanusageoffunding.LearningObjective4PrepareaMasterBudgetforaManufacturingCompany.TheMasterBudget:AnOverviewProductionbudgetSellingandadministrativebudgetDirectmaterialsbudgetManufacturingoverheadbudgetDirectlabor

budgetCashBudgetSalesbudgetEndinginventorybudgetBudgeted

balancesheetBudgeted

income

statementLearningObjective4(a)Prepareasalesbudget,includingascheduleofexpectedcashcollections.BudgetingExampleRoyalCompanyispreparingbudgetsforthe

quarterendingJune30.Budgetedsalesforthenextfivemonthsare:April 20,000unitsMay 50,000unitsJune 30,000unitsJuly 25,000unitsAugust 15,000units.Thesellingpriceis$10perunit.TheSalesBudgetTheindividualmonthsofApril,May,andJunearesummedtoobtainthetotalbudgetedsalesinunitsanddollarsforthequarterendedJune30thExpectedCashCollectionsAllsalesareonaccount.Royal’scollectionpatternis:70%collectedinthemonthofsale,25%collectedinthemonthfollowingsale,5%uncollectible.TheMarch31accountsreceivablebalanceof$30,000willbecollectedinfull.ExpectedCashCollectionsExpectedCashCollectionsFromtheSalesBudgetforApril.ExpectedCashCollectionsFromtheSalesBudgetforMay.QuickCheck

Whatwillbethetotalcashcollectionsforthequarter?a.$700,000b.$220,000c.$190,000d.$905,000

Whatwillbethetotalcashcollectionsforthequarter?a.$700,000b.$220,000c.$190,000d.$905,000QuickCheckExpectedCashCollectionsLearningObjective4(b)Prepareaproductionbudget.TheProductionBudgetProductionBudgetSalesBudget

and

Expected

Cash

CollectionsCompletedTheproductionbudgetmustbeadequatetomeetbudgetedsalesandtoprovideforthedesiredendinginventory.TheProductionBudgetThemanagementatRoyalCompanywantsendinginventorytobeequalto20%ofthefollowingmonth’sbudgetedsalesinunits.

OnMarch31,4,000unitswereonhand.

Let’spreparetheproductionbudget.TheProductionBudgetTheProductionBudgetMarch31endinginventoryQuickCheck WhatistherequiredproductionforMay?a.56,000unitsb.46,000unitsc.62,000unitsd.52,000units WhatistherequiredproductionforMay?a.56,000unitsb.46,000unitsc.62,000unitsd.52,000unitsQuickCheckTheProductionBudgetTheProductionBudgetAssumedendinginventory.LearningObjective4(c)Prepareadirectmaterialsbudget,includingascheduleofexpectedcashdisbursementsforpurchasesofmaterials.TheDirectMaterialsBudgetAtRoyalCompany,fivepoundsofmaterialarerequiredperunitofproduct.Managementwantsmaterialsonhandattheendofeachmonthequalto10%ofthefollowingmonth’sproduction.OnMarch31,13,000poundsofmaterialareonhand.Materialcostis$0.40perpound.

Let’spreparethedirectmaterialsbudget.TheDirectMaterialsBudgetFromproductionbudgetTheDirectMaterialsBudgetTheDirectMaterialsBudgetCalculatethematerialsto

bepurchasedinMay.March31inventory10%offollowingmonth’sproductionneeds.QuickCheck HowmuchmaterialsshouldbepurchasedinMay?a.221,500poundsb.240,000poundsc.230,000poundsd.211,500pounds HowmuchmaterialsshouldbepurchasedinMay?a.221,500poundsb.240,000poundsc.230,000poundsd.211,500poundsQuickCheckTheDirectMaterialsBudgetTheDirectMaterialsBudgetAssumedendinginventoryExpectedCashDisbursementforMaterialsRoyalpays$0.40perpoundforitsmaterials.One-halfofamonth’spurchasesispaidforinthemonthofpurchase;theotherhalfispaidinthefollowingmonth.TheMarch31accountspayablebalanceis$12,000.

Let’scalculateexpectedcashdisbursements.ExpectedCashDisbursementforMaterialsExpectedCashDisbursementforMaterials140,000lbs.×$0.40/lb.=$56,000Computetheexpectedcash

disbursementsformaterials

forthequarter.QuickCheck Whatarethetotalcashdisbursementsforthequarter?a.$185,000b.$68,000c.$56,000d.$201,400 Whatarethetotalcashdisbursementsforthequarter?a.$185,000b.$68,000c.$56,000d.$201,400QuickCheckExpectedCashDisbursementforMaterialsLearningObjective4(d)Prepareadirectlaborbudget.TheDirectLaborBudgetAtRoyal,eachunitofproductrequires0.05hours(3minutes)ofdirectlabor.TheCompanyhasa“nolayoff”policysoallemployeeswillbepaidfor40hoursofworkeachweek.ForpurposesofourillustrationassumethatRoyalhasa“nolayoff”policy,workersarepayattherateof$10perhourregardlessofthehoursworked.Forthenextthreemonths,thedirectlaborworkforcewillbepaidforaminimumof1,500hourspermonth.Let’spreparethedirectlaborbudget.TheDirectLaborBudgetFromproductionbudget.TheDirectLaborBudgetTheDirectLaborBudgetGreateroflaborhoursrequiredorlaborhoursguaranteed.TheDirectLaborBudgetQuickCheck Whatwouldbethetotaldirectlaborcostforthequarterifthecompanyfollowsitsnolay-offpolicy,butpays$15(time-and-a-half)foreveryhourworkedinexcessof1,500hoursinamonth?a.$79,500b.$64,500c.$61,000d.$57,000 Whatwouldbethetotaldirectlaborcostforthequarterifthecompanyfollowsitsnolay-offpolicy,butpays$15(time-and-a-half)foreveryhourworkedinexcessof1,500hoursinamonth?a.$79,500b.$64,500c.$61,000d.$57,000QuickCheckLearningObjective4(e)Prepareamanufacturingoverheadbudget.ManufacturingOverheadBudgetAtRoyal,manufacturingoverheadisappliedtounitsofproductonthebasisofdirectlaborhours.Thevariablemanufacturingoverheadrateis$20perdirectlaborhour.Fixedmanufacturingoverheadis$50,000permonth,whichincludes$20,000ofnoncashcosts(primarilydepreciationofplantassets).

Let’spreparethemanufacturingoverheadbudget.ManufacturingOverheadBudgetDirectLaborBudget.ManufacturingOverheadBudgetTotalmfg.OHforquarter$251,000

Totallaborhoursrequired5,050=$49.70perhour**roundedManufacturingOverheadBudgetDepreciationisanoncashcharge.EndingFinishedGoodsInventoryBudgetDirectmaterialsbudgetandinformation.EndingFinishedGoodsInventoryBudgetDirectlaborbudget.EndingFinishedGoodsInventoryBudgetTotalmfg.OHforquarter$251,000

Totallaborhoursrequired5,050=$49.70perhour*EndingFinishedGoodsInventoryBudgetProductionBudget.LearningObjective4(f)Prepareasellingandadministrativeexpensebudget.SellingandAdministrativeExpenseBudgetAtRoyal,thesellingandadministrativeexpensebudgetisdividedintovariableandfixedcomponents.Thevariablesellingandadministrativeexpensesare$0.50perunitsold.Fixedsellingandadministrativeexpensesare$70,000permonth.Thefixedsellingandadministrativeexpensesinclude$10,000incosts–primarilydepreciation–thatarenotcashoutflowsofthecurrentmonth.

Let’spreparethecompany’ssellingandadministrativeexpensebudget.SellingandAdministrativeExpenseBudgetCalculatethesellingandadministrative

cashexpensesforthequarter.QuickCheck Whatarethetotalcashdisbursementsforsellingandadministrativeexpensesforthequarter?a.$180,000b.$230,000c.$110,000d.$70,000 Whatarethetotalcashdisbursementsforsellingandadministrativeexpensesforthequarter?a.$180,000b.$230,000c.$110,000d.$70,000QuickCheckSellingAdministrativeExpenseBudgetLearningObjective4(g)Prepareacashbudget.FormatoftheCashBudgetThecashbudgetisdividedintofoursections:Cashreceiptssectionlistsallcashinflowsexcludingcashreceivedfromfinancing;Cashdisbursementssectionconsistsofallcashpaymentsexcludingrepaymentsofprincipalandinterest;Cashexcessordeficiencysectiondeterminesifthecompanywillneedtoborrowmoneyorifitwillbeabletorepayfundspreviouslyborrowed;andFinancingsectiondetailstheborrowingsandrepaymentsprojectedtotakeplaceduringthebudgetperiod.TheCashBudgetAssumethefollowinginformationforRoyal:Maintainsa16%openlineofcreditfor$75,000Maintainsaminimumcashbalanceof$30,000BorrowsonthefirstdayofthemonthandrepaysloansonthelastdayofthemonthPaysacashdividendof$49,000inAprilPurchases$143,700ofequipmentinMayand$48,300inJune(bothpurchasespaidincash)HasanApril1cashbalanceof$40,000TheCashBudgetScheduleofExpectedCashCollections.TheCashBudgetDirectLaborBudget.ManufacturingOverheadBudget.SellingandAdministrativeExpenseBudget.ScheduleofExpectedCashDisbursements.TheCashBudgetBecauseRoyalmaintainsacashbalanceof$30,000,thecompanymustborrow$50,000onitsline-of-credit.TheCashBudgetEndingcashbalanceforAprilisthebeginningMaybalance.BecauseRoyalmaintainsacashbalanceof$30,000,thecompanymustborrow$50,000onitsline-of-credit.TheCashBudgetQuickCheck Whatistheexcess(deficiency)ofcashavailableoverdisbursementsforJune?a.$85,000b.$(10,000)c.$75,000d.$95,000 Whatistheexcess(deficiency)ofcashavailableoverdisbursementsforJune?a.$85,000b.$(10,000)c.$75,000d.$95,000QuickCheckTheCashBudget$50,000×16%×3/12=$2,000

BorrowingsonApril1and

repaymentonJune30.TheBudgetedIncomeStatementCashBudgetBudgetedIncomeStatementCompletedWithinterestexpensefromthecashbudget,Royalcanpreparethebudgetedincomestatement.LearningObjective4(h)Prepareabudgetedincomestatement.TheBudgetedIncomeStatementSalesBudget.EndingFinished

GoodsInventory.Sellingand

Administrative

ExpenseBudget.CashBudget.LearningObjective4(i)Prepareabudgetedbalancesheet.TheBudgetedBalanceSheetRoyalreportedthefollowingaccountbalancespriortopreparingitsbudgetedfinancialstatements:Land-$50,000Commonstock-$200,000Retainedearnings-$146,150(April1)Equipment-$175,000LearningObjective5PrepareBudgetontheKeyComponentsfortheServiceIndustryKeyBudgetComponentsfortheServiceIndustryWonderWorld,ahypotheticalthemepark,hasthefollowingdata:MainSourcesofRevenueMajorExpensesDepartmentsTicketingFood&BeveragesSouvenirShopSalariesRentCostofSalesAdvertisingMaintenanceDepreciationUtilitiesFinance&AdministrationOperationsMarketingSouvenirShopFoodandBeveragesMaintenanceLearningObjective5(a)PrepareaVisitorshipBudgetVisitorshipBudgetNumberofVisitorsAdults750,000Children250,000TotalVisitors1,000,000Basedonhistoricalrecords,economicoutlook,touristarrivalexpectations,thefollowingvisitorshipbudgetforthecomingyearisprepared:LearningObjective5(b)PrepareaRevenueBudgetRevenueBudgetRevenuepervisitorGateCollections:Adults$13GateCollections:Children$9SouvenirShop$4FoodandBeverages$6BasedontheaveragepricechargedbyWonderWorldandotherhistori