tailieunhanh - Ebook Managerial accounting - An Introduction to concepts, methods and uses (10th edition): Part 2

(BQ) Part 2 book "Managerial accounting - An Introduction to concepts, methods and uses" has contents: Profit planning and budgeting, profit and cost center performance evaluation, investment center performance evaluation, incentive issues, allocating costs to responsibility centers. | PART THREE 3 macmu 10 Motivating Managers to Make Good Decisions Managers use accounting information to address planning and performance evaluation questions such as these: How many units of product do we expect to sell this year? What facilities, personnel, and other resources will be required to produce enough units to meet projected sales? What is our projected level of profits for the year? How do we measure the efficiency of production activities such as the use of materials or labor? 302 Part 3 Motivating Managers to Make Good Decisions How can we design performance measurement systems to encourage employees to act in the best interests of the organization? Managerial accounting information helps managers deal with these issues. Managers use accounting information to measure performance and to allocate resources to their best uses. chapter 9 Profit Planning and Budgeting n Learning Objectives 1. Explain the use of a budget as a tool for planning and performance evaluation. 5. Explain the difference between a flexible budget and a master budget. 2. Explain how a budget can affect employee motivation. 6. Describe ethical dilemmas in budgeting. 3. Compare the four types of responsibility centers. 4. Describe the master budget. 7. List the components of a comprehensive master budget (Appendix ). 8. Describe an incentive model for accurate reporting (Appendix ). A budget is a financial plan of the resources needed to carry out tasks and meet financial goals. A company’s controller explained the use of budgeting in her organization as follows: At our company, we view the budget as a blueprint for the company’s activities, much like an architect makes a blueprint for the construction of a building. Like the architect’s blueprint, our master budget helps us to plan and coordinate activities, to ascertain the means of achieving our goals, and to establish standards against which we measure our performance. All levels of management .