tailieunhanh - Lecture Management accounting (5/e): Chapter 9 - Kim Langfield-Smith

Chapter 9 - Budgeting systems . This chapter presents the following content: Strategic planning and budgeting systems, purposes of budgeting, responsibility accounting, the annual budget: a planning tool, strategic planning and budgeting assumptions, the operating budgets, the financial budgets, budgets in not-for-profit organisations and government agencies, budget administration, behavioural consequences of budgeting, zero-based budgeting and program budgeting. | Chapter 9 Budgeting systems 9- Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Management Accounting 5e by Langfield-Smith Prepared by Kim Langfield-Smith Outline Strategic planning and budgeting systems Purposes of budgeting Responsibility accounting The annual budget: a planning tool Strategic planning and budgeting assumptions The operating budgets The financial budgets Budgets in not-for-profit organisations and government agencies Budget administration Behavioural consequences of budgeting Zero-based budgeting and program budgeting 9- Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Management Accounting 5e by Langfield-Smith Prepared by Kim Langfield-Smith Strategic planning and budgeting systems A budget A detailed plan summarising the financial consequences of an organisation’s operating activities for a specific future time period A core component of an organisation’s planning and control system A critical way of providing | Chapter 9 Budgeting systems 9- Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Management Accounting 5e by Langfield-Smith Prepared by Kim Langfield-Smith Outline Strategic planning and budgeting systems Purposes of budgeting Responsibility accounting The annual budget: a planning tool Strategic planning and budgeting assumptions The operating budgets The financial budgets Budgets in not-for-profit organisations and government agencies Budget administration Behavioural consequences of budgeting Zero-based budgeting and program budgeting 9- Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Management Accounting 5e by Langfield-Smith Prepared by Kim Langfield-Smith Strategic planning and budgeting systems A budget A detailed plan summarising the financial consequences of an organisation’s operating activities for a specific future time period A core component of an organisation’s planning and control system A critical way of providing information to managers to help them manage resources and create value Often has a time horizon of a year 9- (cont.) Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Management Accounting 5e by Langfield-Smith Prepared by Kim Langfield-Smith Strategic planning and budgeting systems (cont.) Strategic planning is long-term planning usually undertaken by senior managers Decisions about corporate strategy The type of businesses and markets that the organisation operates in How those businesses and activities will be financed Decisions about business strategy How each business competes within its chosen market A time horizon of three or more years Formulated in broad terms in far less detail than budgets Directly influences the formation of budgets 9- Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Management Accounting 5e by Langfield-Smith Prepared by Kim Langfield-Smith Purposes of budgeting Planning To quantify a plan of action .