tailieunhanh - Lecture Managerial accounting: Chapter 6 - Weygandt, Kieso, & Kimmel

Chapter 6: Budgetary planning. After studying this chapter, you should be able to: Indicate the benefits of budgeting, state the essentials of effective budgeting, identify the budgets the comprise the master budget, describe the sources for preparing the budgeted income statement,. | John Wiley & Sons, Inc. Prepared by Karleen Nordquist The College of St. Benedict. and St. John’s University. with contributions by Marianne Bradford The University of Tennessee. Gregory K. Lowry . Macon Technical Institute Managerial Accounting Weygandt, Kieso, & Kimmel 1 Chapter 6 Budgetary Planning After studying this chapter, you should be able to: 1 Indicate the benefits of budgeting. 2 State the essentials of effective budgeting. 3 Identify the budgets the comprise the master budget. 4 Describe the sources for preparing the budgeted income statement. 5 Explain the principal sections of a cash budget. 6 Indicate the applicability of budgeting in nonmanufacturing companies. Chapter 6 Budgetary Planning Preview of Chapter 6 Budgeting Basics Budgets and Accounting Benefits Essentials of Effective Budgeting Length of Budget Period Budgeting Process Budgeting and Human Behavior Budgeting and Long-Range Planning The Master Budget BUDGETARY PLANNING Preview of Chapter 6 . | John Wiley & Sons, Inc. Prepared by Karleen Nordquist The College of St. Benedict. and St. John’s University. with contributions by Marianne Bradford The University of Tennessee. Gregory K. Lowry . Macon Technical Institute Managerial Accounting Weygandt, Kieso, & Kimmel 1 Chapter 6 Budgetary Planning After studying this chapter, you should be able to: 1 Indicate the benefits of budgeting. 2 State the essentials of effective budgeting. 3 Identify the budgets the comprise the master budget. 4 Describe the sources for preparing the budgeted income statement. 5 Explain the principal sections of a cash budget. 6 Indicate the applicability of budgeting in nonmanufacturing companies. Chapter 6 Budgetary Planning Preview of Chapter 6 Budgeting Basics Budgets and Accounting Benefits Essentials of Effective Budgeting Length of Budget Period Budgeting Process Budgeting and Human Behavior Budgeting and Long-Range Planning The Master Budget BUDGETARY PLANNING Preview of Chapter 6 Preparing the Operating Budgets Sales Production Direct Materials Manufacturing Overhead Selling and Administrative Expense Budgeted Income Statement BUDGETARY PLANNING Preview of Chapter 6 Preparing the Financial Budgets Cash Budgeted Balance Sheet Budgeting in Nonmanufacturing Companies Merchandising Service Non-for-profit BUDGETARY PLANNING Budgeting Basics Budgeting is used as a planning tool. A budget is a formal written summary (or statement) of management’s plans for a specified time period, expressed in financial terms. It normally represents the primary means of communicating agreed-upon objectives throughout the business organization. Accounting information makes major contributions to the budgeting process. Indicate the benefits of budgeting. Study Objective 1 Benefits of Budgeting The primary benefits of budgeting are as follows: It requires all levels of management to plan ahead. It provides definite objectives for evaluating performance. It creates an early warning system .