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Using
Budgets
to
AchieveOrganizational
Objectives11-
12001
Prentice
Hall
Business
Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
YoungLearning
Objective
111-
12001
Prentice
Hall
Business
Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
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andFlexible
Resources11-
12001
Prentice
Hall
Business
Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
YounguuyuuuvePlanning
and
Controland
the
Role
of
Budgets11-
12001
Prentice
Hall
Business
Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
YounguunruuPlanning
and
Controland
the
Role
of
Budgets11-
12001
Prentice
Hall
Business
Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
YounguuiuPlanning
and
Controland
the
Role
of
Budgets11-
12001
Prentice
Hall
Business
Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
YoungutluuhvariancesPlanning
and
Controland
the
Role
of
BudgetsIdentify
Organization
Objectiand
Short-Term
GoalsDevelop
Long-Term
Strategyand
Short-Term
PlansDevelop
MasterBudgetMeasure
and
AssessPerformanceReevaluate
Objectives,
Goals,Strategy,
andPlansg11-
12001
Prentice
Hall
Business
Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
YounglPlanning
and
Controland
the
Role
of
Budgets11-
12001
Prentice
Hall
Business
Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
YoungunuiuauriLearning
Objective
211-
12001
Prentice
Hall
Business
Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
YoungBudgetinguu11-
12001
Prentice
Hall
Business
Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
YoungElements
of
Budgeting1.OrganizationGoals3.CapitalSpendingPlan2.SalesPlan5.ProductionPlan8.LaborHiring4.InventoryPolicy6.ProductiveCapacity7.MaterialsPurchasingPlan9.AdministrativeandTrainingPlan ySpendingPlan10.ExpectedFinancialResults11.StatementofExpectedCashFlows12.ProjectedFinancialStatements11-
12001
Prentice
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Business
Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
YoungLearning
Objective
311-
12001
Prentice
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Business
Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
YoungMaster
Budget
OutputsuThe
plans
or
operating
budgeThe
expected
or
projectedfinancial
results11-
12001
Prentice
Hall
Business
Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
YoungOperating
Budgets11-
12001
Prentice
Hall
Business
Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
Youngusiuuusales
plancapital
spending
planproduction
planvreOperating
Budgets11-
12001
Prentice
Hall
Business
Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
Young4materials
purchasing
plan5labor
hiring
and
training
planf6administrative
and
discretionaryspending
planFinancial
Budgets11-
12001
Prentice
Hall
Business
Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
Youngu,uucash
flowsbalance
sheetuincome
statemenFinancial
Budgets11-
12001
Prentice
Hall
Business
Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
YounguuduLearning
Objective
411-
12001
Prentice
Hall
Business
Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
YoungThe
Budgeting
Process11-
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Prentice
Hall
Business
Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
Youngdemand
forecastuuousuproduction
planuurThe
Budgeting
Process11-
12001
Prentice
Hall
Business
Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
YounguuuuuThe
Budgeting
Process11-
12001
Prentice
Hall
Business
Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
Youngaggregate
planninguuyuspending
plansu.The
Budgeting
Processuspending
plansMaterials
purchasinplansLabor
hiring
andtraining
planAdministrative
anddiscretionaryspending
planCapital
spendingplan11-
12001
Prentice
Hall
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Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
YoungThe
Budgeting
Process11-
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Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
Younguu
Flexible
resourcescapacity
levelsnu
Committedresourcesou
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Types
andCommitment
TimeTermFlexible
resources
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short
m(less
than
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weeks)Type
of
Capacity
AcquiredProvides
the
ability
to
useexisting
capacityExamplesRaw
materials,
supplies,casual
labor11-
12001
Prentice
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Accounting,
3/E,
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Banker,
Kaplan,
and
YoungCapacity
Types
andCommitment
TimeTermCommitted
resources
acquired
for
theintermediate
term
(up
to
six
months)Type
of
Capacity
AcquiredGeneral
purpose
capacity
that
istransferable
between
organizationsExamplesPeople,
general
purpose
equipment,specialty
raw
materials11-
12001
Prentice
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Business
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Management
Accounting,
3/E,
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Banker,
Kaplan,
and
YoungCapacity
Types
andCommitment
TimeTermCommitted
resources
acquired
for
thelong-term
(more
than
six
months)Type
of
Capacity
AcquiredSpecial
purpose
capacity
that
is
custfor
the
organization’s
useExamplesBuildings,special
purpose
equipment11-
12001
Prentice
Hall
Business
Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
YoungInterpreting
the
Production
PlauProduction
=Minimum
(production
capacity,
total
demand11-
12001
Prentice
Hall
Business
Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
YoungThe
Financial
Plans11-
12001
Prentice
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Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
Youngusuu,nThe
Cash
Flow
StatementProjected
Cash
Flow
StatementCash
inflows
from
sales
and
collectioof
receivablesCash
outflows
for:Short-term
flexible
resourcesIntermediate-term
committedresourcesLong-term
committed
resourcesResults
of
financing
operations11-
12001
Prentice
Hall
Business
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Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
YoungThe
Cash
Flow
StatementFormat
of
Cash
Flow
StatementCash
inflows
–
Cash
outflows=
Net
cash
flow11-
12001
Prentice
Hall
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Management
Accounting,
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Banker,
Kaplan,
and
YoungUsing
the
Projected
Results11-
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Accounting,
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and
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Analysis11-
12001
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Hall
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Publishing
Management
Accounting,
3/E,
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Banker,
Kaplan,
and
YounguiuuuuCost-Volume-Profit
AnalysisuuuCapacity-Related
Costs
Contribution
Margin
Per
Unit11-
12001
Prentice
Hall
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Accounting,
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AnalysisuluPlastic11-
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Accounting,
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Atkinson,
Banker,
Kaplan,
and
YoungMetal
Specialty
SalesUnit500,000425,000400,0
0Contribution
Margin
$14Cost-Volume-Profit
Analysis11-
12001
Prentice
Hall
Business
Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
Younguonuuu5uCost-Volume-Profit
Analysis11-
12001
Prentice
Hall
Business
Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
Younguuuuuu7Learning
Objective
511-
12001
Prentice
Hall
Business
Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
YoungWhat-If
Analysisuui11-
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Accounting,
3/E,
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Banker,
Kaplan,
and
YoungSensitivity
Analysis11-
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Prentice
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Business
Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
YounguuauhaLearning
Objective
611-
12001
Prentice
Hall
Business
Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
YoungThe
Role
of
Budgeting
in
Serviceand
Not-For-Profit
Organizationutf11-
12001
Prentice
Hall
Business
Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
YoungThe
Role
of
Budgeting
in
Serviceand
Not-For-Profit
OrganizationOrganizationTypeFocus
of
BudgetingProcessManufacturingNatural
resourcesSalesandmanufacturinactivitiesSales,
resourceServiceNonprofit11-
12001
Prentice
Hall
Business
Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
Youngavailability,
and
acquisitSales
activities,
andstaffing
requirementsRaising
revenues
andcontrolling
expendituresThe
Role
of
Budgeting
in
Service11-
12001
Prentice
Hall
Business
Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
Youngand
Not-For-Profit
OrganizationuuuueuThe
Role
of
Budgeting
in
Service11-
12001
Prentice
Hall
Business
Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
Youngand
Not-For-Profit
OrganizationuueuControlling
DiscretionaryExpendituresuhIncremental
BudgetingZero-Based
BudgetingProject
Funding11-
12001
Prentice
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Publishing
Management
Accounting,
3/E,
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Banker,
Kaplan,
and
YoungControlling
DiscretionaryExpenditures11-
12001
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Management
Accounting,
3/E,
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Banker,
Kaplan,
and
YounguuieControlling
DiscretionaryExpenditures11-
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Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
YounguuieControlling
DiscretionaryExpenditures11-
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Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
YounguuoControlling
DiscretionaryExpenditures11-
12001
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Hall
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Publishing
Management
Accounting,
3/E,
Atkinson,
Banker,
Kaplan,
and
Younguactivity
based
budgetingusLearning
Objective
711-
12001
Prentice
Hall
Business
Publishing
Management
Acco
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