tailieunhanh - Lecture Accounting principles (12th Edition): Chapter 23 - Weygandt, Kimmel, Kieso
Chapter 23 - Budgetary planning. In this chapter, the learning objectives are: Indicate the benefits of budgeting, state the essentials of effective budgeting, identify the budgets that comprise the master budget, describe the sources for preparing the budgeted income statement. | Learning Objectives State the essentials of effective budgeting and the components of the master budget. 1 Prepare budgets for sales, production, and direct materials. 2 Prepare budgets for direct labor ,manufacturing overhead, and selling and administrative expenses, and a budgeted income statement. 3 Prepare a cash budget and a budgeted balance sheet. 4 Apply budgeting principles to nonmanufacturing companies. 5 Budgetary Planning 23 Budget: a formal written statement of management’s plans for a specified future time period, expressed in financial terms. Primary method of communicating agreed-upon objectives throughout the organization. Promotes efficiency. Control device - important basis for performance evaluation once adopted. LEARNING OBJECTIVE State the essentials of effective budgeting and the components of the master budget. 1 LO 1 Historical accounting data on revenues, costs, and expenses help in formulating future budgets. Accountants normally responsible for presenting management’s budgeting goals in financial terms. The budget and its administration are the responsibility of management. Budgeting and Accounting LO 1 Primary benefits of budgeting: Requires all levels of management to plan ahead. Provides definite objectives for evaluating performance. Creates an early warning system for potential problems. Facilitates coordination of activities within the business. Results in greater management awareness of the entity’s overall operations. It motivates personnel throughout organization to meet planned objectives. The Benefits of Budgeting LO 1 Which of the following is not a benefit of budgeting? Management can plan ahead. An early warning system is provided for potential problems. It enables disciplinary action to be taken at every level of responsibility. The coordination of activities is facilitated. Question The Benefits of Budgeting LO 1 Depends on a sound organizational structure with authority and responsibility for all phases of operations . | Learning Objectives State the essentials of effective budgeting and the components of the master budget. 1 Prepare budgets for sales, production, and direct materials. 2 Prepare budgets for direct labor ,manufacturing overhead, and selling and administrative expenses, and a budgeted income statement. 3 Prepare a cash budget and a budgeted balance sheet. 4 Apply budgeting principles to nonmanufacturing companies. 5 Budgetary Planning 23 Budget: a formal written statement of management’s plans for a specified future time period, expressed in financial terms. Primary method of communicating agreed-upon objectives throughout the organization. Promotes efficiency. Control device - important basis for performance evaluation once adopted. LEARNING OBJECTIVE State the essentials of effective budgeting and the components of the master budget. 1 LO 1 Historical accounting data on revenues, costs, and expenses help in formulating future budgets. Accountants normally responsible for presenting .
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