tailieunhanh - Lecture Cost management: A strategic emphasis (6/e): Chapter 10 – Blocher, Stout, Juras, Cokins

Chapter 10 - Strategy and the master budget. In this chapter, the learning objectives are: Describe the role of budgets in the overall management process, discuss the importance of strategy and its role in the master budgeting process, outline the budgeting process, prepare a master budget and explain the interrelationships among its supporting schedules,. | Strategy and the Master Budget Chapter Ten McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. 10-2 Describe the role of budgets in the overall management process Discuss the importance of strategy and its role in the master budgeting process Outline the budgeting process Prepare a master budget and explain the interrelationships among its supporting schedules Learning Objectives 10-3 Learning Objectives (continued) Deal with uncertainty in the budgeting process Identify unique characteristics of budgeting for service companies Understand alternative approaches to budgeting (viz., zero-base, activity-based, time-driven activity-based, and Kaizen budgeting) Discuss various behavioral considerations in budgeting 10-4 A budget: is a financial or nonfinancial expression of a plan of action for a specified period identifies the resources and commitments required to achieve the organization’s goals for an upcoming period Budgeting: The process of preparing a budget (or set of budgets) is called budgeting Basic Terminology 10-5 The starting point in the budget-preparation process is specification of the organization’s strategy The organization’s long-range plan identifies required actions over a 5- to 10-year period to attain the organization’s strategic goal(s) An organization expresses its strategic goals and long-term objectives in its capital budget and master budget Strategic budget expenditures represent a special class of capital budgeting proposals, that is, those that lead to long-term value and competitive advantage by the organization Strategy and the Master Budget 10-6 Budget Committee Budget Period Budget Guideline Negotiation, Review, and Approval Revision The Budgeting Process 10-7 The Master Budget Represents the “grand plan of action” for an upcoming period Translates the organization’s short-term objectives into action steps Culminates in the preparation of a set of pro-forma financial statements Communicates to . | Strategy and the Master Budget Chapter Ten McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. 10-2 Describe the role of budgets in the overall management process Discuss the importance of strategy and its role in the master budgeting process Outline the budgeting process Prepare a master budget and explain the interrelationships among its supporting schedules Learning Objectives 10-3 Learning Objectives (continued) Deal with uncertainty in the budgeting process Identify unique characteristics of budgeting for service companies Understand alternative approaches to budgeting (viz., zero-base, activity-based, time-driven activity-based, and Kaizen budgeting) Discuss various behavioral considerations in budgeting 10-4 A budget: is a financial or nonfinancial expression of a plan of action for a specified period identifies the resources and commitments required to achieve the organization’s goals for an upcoming period Budgeting: The process of .